AUGUSTA — Maine employers would no longer be allowed to negotiate severance pay packages that do not meet the state’s minimum standard, if a bill that received final House approval Thursday becomes law.
State law requires companies with 100 or more workers that close or leave the state to give a week’s pay for each year worked to those on the payroll for at least three years.
But organized labor leaders say a loophole has allowed employers that closed down to negotiate severance packages smaller than what state law stipulates.
The Maine AFL-CIO said workers have had to negotiate at a disadvantage because of the way the law is written. The bill faced a final Senate vote.