12-170 C.M.R. ch. 3
Summary: The purpose of this Chapter is to ensure consistent and fair administration of the Maine Wage Assurance Fund, 26 MRSA, Section 632, which was established by the Legislature to make payment of up to two weeks of earned wages owed an employee by an insolvent employer unable to make payment. These rules establish the following: the definition of terms used, the general administrative responsibilities of the Bureau of Labor Standards, the information needed to apply for payments, the process of determining the amount of earned wages, the information used to determine the insolvency of an employer, the process to be used in making disbursements, the process to be used when insufficient funds are available to make complete payments to all eligible employees, and the right to an administrative fair hearing.
For the purpose of these regulations, the following terms will be construed as follows:
A. "Bureau" means the Bureau of Labor Standards within the Department of Labor. B. "Director" means the director of the Bureau of Labor Standards or the director's designee. C. "Fund" means the Maine Wage Assurance Fund. D. "Wages" means compensation in the form of cash or check to be paid to employees for work performed. The term "wages" does not include fringe benefits, including, but not limited to, holiday pay, sick pay, vacation pay, insurance premiums, or severance pay benefits.
A. The Bureau has an affirmative responsibility, upon complaint, to investigate any complaint or other information related to business closings to determine whether all earned wages owed employees have been paid. B. Former employees eligible for assistance under the Wage Assurance provisions of the law will be provided with or mailed a verification of eligibility as soon as administratively feasible following the completion of
an investigation which determines potential eligibility.
C. The Director shall determine eligibility and payment must be made to all eligible former employees as soon as administratively feasible except as provided in Section 7.
A. Verification of eligibility from the Fund must be in writing and must include the following information:
1. The name, social security number, current address and telephone number of the employee claiming payment from the Fund;
2. The name and address of the employer;
3. The date the employer terminated business;
4. The employer's week-ending dates for pay weeks during which wages were earned but not paid and the amount of unpaid wages earned in each week.
5. Any information the employee may wish to provide which could be of assistance in securing payment of wages;
6. A statement of veracity and completeness of the information provided; and
7. The signature of the employee requesting payment. B. Verification of eligibility forms must be printed and provided by the Bureau. C. The Bureau may require completion of any Federal or State tax form it determines to be required. Forms required by the Bureau must be provided to the eligible employee(s) with the verification of eligibility forms.
A. The Director shall determine the amount of earned wages owed to each employee by the employer by examining payroll records, checks, or other reliable data. B. Payments of earned wages by any third party shall be deducted from the total amount of wages determined to be earned.
C. If the Bureau determines that the employee is eligible for payment from the Fund, the amount of payment will be for the gross earned wages. If the gross amount cannot be determined, the payment will be the net amount due.
D. If payment is based on the gross earned wages, all payroll deductions including but not limited to federal and state taxes, insurance premiums, wage attachments and retirement plan payments will be the responsibility of the employee receiving payment.
E. The amount of earned wages determined by the director may not exceed the maximum of two weeks of wages as established in the law. In the event an eligible employee is owed more than two weeks of wages, payment must be made based on the two weeks for which the highest amount of wages are owed.
F. The amount of earned weekly wages paid by the Bureau may not exceed 150% of the average weekly wage determined by the Department of Labor, Bureau of Unemployment Compensation pursuant to Title 26 MRSA, § 1043, §§ 1-A and in effect during the period the unpaid wages to be compensated were earned.
The Director shall make a determination of insolvency and the date of termination of business upon receipt of any of the following documentation:
A. An affidavit from the employer or employer's representative stating that the employer has no assets from which earned wages may be paid;
B. A copy of the employer's petition in bankruptcy;
C. Information from financial institutions regarding the employer's assets and operations; or
D. Other reliable information.
A. Following a determination by the Director of eligibility and amount of earned wages, the director shall inform the Office of the State Treasurer of the amount to be paid each eligible employee from the Fund.
B. Payments to eligible employees must be mailed to the current address supplied in the verification of eligibility.
C. If payment is returned to the Bureau for any reason, the Bureau shall attempt to contact the eligible employee or individuals who may have information regarding his or her whereabouts by mail and telephone.
D. If the Bureau is unable to ascertain the whereabouts of the eligible employee, the payment must be returned to the Office of the State Treasurer for redeposit in the Fund pursuant to appropriate financial procedures.
In the event that insufficient funds or allotments are available to make complete payment to all former employees, the director may determine alternative payment methods, including, but not limited to, reduced payments and payment over time. In determining insufficient funds or allotment, the Director shall take into account any estimated or anticipated future liability of the Fund.
A. Each individual who submits a verification of eligibility from the Fund shall receive written notice of the eligibility determination of the Bureau which must include notice of the opportunity for an administrative hearing.
B. Each individual who receives an eligibility determination from the Bureau shall have the right to an administrative hearing conducted by the Director in accordance with the provisions of the Administrative Procedure Act, Title 5 MRSA, § 8001 et seq.
STATUTORY AUTHORITY: 26 MRSA, Section 632.
EFFECTIVE DATE: September 9, 1986
EFFECTIVE DATE (ELECTRONIC CONVERSION): December 25, 1996
REPEALED AND REPLACED: July 5, 1998