A Guide for Maine Workers and Their Families:
I'm losing my job--what do I need to know?

Guide Contents

Contents of this page
3.1 When is it illegal to fire a worker?
3.2 Do I have to tell my employer in advance if I'm planning to quit my job? Does my employer have to tell me in advance if my job is ending?
3.3 I left my job and my employer hasn't paid me yet: what can I do?
3.4 What if my employer goes bankrupt or out of business, and doesn't pay me what I'm owed?
3.5 Am I entitled to severance pay if I'm laid off from my job?
3.6 Can I keep my health insurance if I am laid off? (COBRA)

3.1 When is it illegal to fire a worker?

In most situations, it is not illegal for an employer to fire a worker. But, if you have a contract, it may include some protections.

In some cases, it is illegal to fire you:

• Workers’ Compensation Protections: It is illegal to fire you because you make a claim for workers’ compensation benefits.
• Discrimination: The Maine Human Rights Act protects you against unlawful discrimination. You can file a charge with the Maine Human Rights Commission (MHRC) if you think you were fired because of your race or color, sex (includes pregnancy status), religion, sexual orientation, age, physical or mental disability, ancestry or national origin, or genetic pre-disposition.
• You can also file a charge if you think you were fired because you complained to your employer about discrimination or because you were involved in an MHRC investigation.
• Protections for “Whistleblowers”: It is illegal to fire a person for being a “whistleblower.” A whistleblower is a person who reports an action or condition at his or her workplace that he or she believes is either very dangerous or illegal. If you are a whistleblower, you can’t be fired, or threatened with firing, for:
• Reporting a violation of the law;
• Reporting a risk to health and safety;
• Refusing to follow an order that you believe is illegal or would expose you or others to serious injury or death (you must have first tried to correct the problem by talking to your employer);
• Participating in an investigation or court action; or
• Reporting what you believe to be improper care of a patient in a nursing home, hospital, clinic, or other health care practice to your employer, the patient, or an appropriate licensing facility.

What should I do if I think I was fired for any of the reasons listed above?

If you think you were fired because your employer unlawfully discriminated against you, because you made a complaint to the Human Rights Commission or because you “blew the whistle”, you can file a complaint with the Maine Human Rights Commission:

Maine Human Rights Commission
51 State House Station
Augusta, ME 04333
Voice: (207) 624-6050
TTY: 1 (888) 577-6690
Fax: (207) 624-6063

Click here to complete an intake form online.

If you think you were fired for filing a Workers’ Compensation complaint you can file a “Petition for Reinstatement” with the Workers’ Compensation Commission. This petition is available on-line from the Workers’ Compensation Board. You may also contact the office in Augusta by phone at 287-3751.

Read “Discrimination on the Job: What can I do?” for more information.

Are there any other reasons why my termination from work might have been illegal?

Your employer may not fire you solely because:

• You were called for jury duty;
• The state is taking money out of your paycheck for child support;
• The state is taking money out of your paycheck to collect an overpayment of public benefits; or
• You complained about not getting overtime pay or minimum wages.
• Your employer was contacted to verify your eligibility for certain public benefits. For example, Anne is getting General Assistance from her town. The town welfare director calls Anne’s boss to verify her income in order to find out if Anne qualifies for help from the town. The law says that Anne’s boss cannot penalize her because the state or town asked for information about Anne.

3.2 Do I have to tell my employer in advance if I’m planning to quit my job? Does my employer have to tell me in advance if my job is ending?

The law does not require you to tell your employer in advance if you plan to quit your job. It also does not require your employer to tell you in advance that he or she plans to discharge you, except in cases of plant closings or mass layoffs as described in the Dislocated Workers Benefits section.

Maine law does allow employers in manufacturing and mechanical businesses to contract with their employees to require that they give one week’s notice of their intention to quit. Whenever this is done, the employer must also agree to give one week’s notice of its intention to discharge the employee. If an employee who has signed a contract like this quits without giving notice, the employer can withhold a week’s pay. Similarly, if an employer who signed this contract fails to give notice, the employer must pay the employee one week’s wages.

Generally, non-union employees do not have contracts and are considered “at-will” employees. In this case there is no promise by either the employer or employee that employment will continue or that any amount of notice is required before the end of the employment relationship. However, it is customary in many industries for employers to expect employees to give two weeks’ notice and, if the employee gives less, he or she risks the possibility of a bad reference or not being rehired. But, employers cannot withhold an employee’s pay for not giving notice except in the limited situations described above.

Are there other protections for workers?

When a labor contract exists between your employer and your union, you probably have a grievance process and cannot be discharged without good cause. Even if you are not a union member, you may have rights to union representation if you are going to be fired.

Some workplaces that are not unionized also have a personnel policy that may include “good cause” for discharge and a grievance process. Ask your employer or personnel manager if you are covered by a personnel manual and ask for a copy of it.

Employees of cities and towns often cannot be discharged without cause. These employees have a right to notice of the reason for discharge and a brief hearing to tell their side of the facts.

Consult with your union or a lawyer if you think your employer has violated a contract between you and your employer.

3.3 I left my job and my employer hasn’t paid me yet: what can I do?

When your job ends, your employer must pay you all of the wages that you are owed.

If your employer has a policy of paying employees for earned, but unused vacation time when their employment ends, then vacation time will be considered “wages” and must be paid along with all other wages if you are fired or leave your job.

But, if you lose your job because your employer becomes insolvent, any “wages” due to you must include any fringe benefits that you earned including vacation time, health care and retirement.

Your employer cannot withhold wages from you to settle a debt he or she claims you owe. The only exceptions to this rule are:

• If you asked your employer to advance your pay, and you promised in writing to repay your employer through withheld wages;
• If your employer accidentally overpaid you and you quit your job before the overpayment could be recovered; OR
• If you have already taken sick or vacation time that you have not yet earned.

In any of these cases, your employer can withhold the amount overpaid from your last check.

Your employer must pay you all of the wages that you are owed on whichever of these dates come first.

• The next regular payday after you leave;
• Within 2 weeks from the time that you ask for your pay.

If your employer does not pay you on time, you have two choices. You can ask the Maine Department of Labor to collect your wages for you, or you can hire your own lawyer to do it.

If your employer has illegally held your pay, the court can order your employer to pay:

• The amount you are owed, including a reasonable amount of interest;
• An additional amount as damages, equal to two times the amount you are owed; and
• Reasonable attorney’s fees.

Who should I call if my employer refuses to give me my back wages?

Maine Department of Labor
Wages and Hours Division
Voice: (207) 624-6400
TTY: 1 (800) 794-1110

You can also hire a lawyer on your own.

For more information:

Read Maine law 26 MRSA Section 626 online.

3.4 What if my employer goes bankrupt or out of business and doesn’t pay me what I’m owed?

If your employer goes bankrupt or out of business and does not pay you, the State of Maine Wage Assurance Fund (the “Fund”) will pay up to 2 weeks of the wages owed to you. If you get help from the State’s Wage Assurance Fund, you will only receive payment for your actual wages, that is, only for the work for which you did not get paid. In this case “wages” do not include benefits like vacation or holiday pay, sick pay, insurance premiums, or severance pay.

If you are owed wages for more than 2 weeks, the Fund will pay for the highest 2 weeks of pay you are owed. If you do not receive all of your back pay from the Fund, or if you are owed vacation pay or other benefits from your employer, talk to a lawyer about whether you can recover these amounts, too.

How do I apply for help from the Wage Assurance Fund?

Contact the Bureau of Labor Standards
Maine Department of Labor
Voice: (207) 624-6400
TTY: 1 (800) 794-1110

Ask for a “verification of eligibility” form to make a claim under the Maine Wage Assurance Fund. You will get a written decision from the Department of Labor telling you if you are eligible for help from the Fund. If you disagree with that decision, you can ask for a hearing by contacting the Director of the Bureau of Labor Standards at the telephone number listed above.

For more information:

Read the rules for the Maine Department of Labor Bureau of Labor Standards (12 170, Chapter 3).

3.5 Am I entitled to severance pay if I’m laid off from my job?

Under Maine law, some employees are eligible for severance pay if their plant closes, moves, or lays off a large number of employees. You may be eligible for severance pay, equal to 1 week’s pay for each year of employment, if all of the following are true:

• You worked for the company for 3 years or more;
• The company (or part of the company) closed or moved at least 100 miles away;
• The company employed 100 or more employees at some time in the year before it closed or moved;
• You have not taken a job at the company’s new location; and
• The company didn’t close because of a fire, flood, other natural disaster, or because of a final bankruptcy order from the court.

If you are eligible for severance pay under a contract with your employer and this amount is smaller than what is required by Maine law, your employer must pay you the difference.

For more information, or to file a complaint:

Maine Department of Labor
Bureau of Labor Standards
Voice: (207) 624-6400
TTY: 1 (800) 794-1110.

If you are a member of a union, you can contact your union representative.

Read Maine law 26 MRSA Section 625-B online.

3.6 My group health care coverage is ending because I lost my job (or lost hours.) Can I continue this coverage?

COBRA (the federal Consolidated Omnibus Budget Reconciliation Act) may make it possible for you to continue to be covered by your employer’s group health insurance when your employer stops paying for your coverage.

Who is eligible for COBRA?

You and your family may be eligible for COBRA if:

• You quit your job
• You were laid off or fired (unless you were fired for gross misconduct)
• Your hours were reduced, so you aren’t covered by your employer’s health care plan anymore

Your family may also be eligible for COBRA if:

• You become eligible for Medicare
• You and your spouse get divorced or legally separated
• You die

Your child may be eligible, if he or she is no longer considered a dependent under the rules of your plan.

In order for you to qualify for COBRA:

• Your employer must have 20 or more employees (2 half-time employees count as 1 employee); and
• Your employer must continue to offer the coverage. If your employer changes health plans, you may be covered under the new plan. But if the company where you worked closes or goes bankrupt and there is no longer a health plan, you will not be able to get COBRA (unless you are a retiree or a union member covered by a collective bargaining agreement that provides for a medical plan).

What will COBRA cost?

Usually, you will need to pay the full cost of your health insurance (including any share that was paid by your employer), plus a 2% administrative fee. If you became eligible for COBRA after September 1, 2008, you may have another change to get benefits at a lower cost.

If you:

• are eligible for COBRA because you were fired or laid off between September 1, 2008 and December 31, 2009; and
• are not eligible for other group health coverage (such as a spouse's plan) or Medicare; and
• elect COBRA coverage

you may only have to pay 35% of the premium under a special program. (Workers who earned more than $125,000 may have to pay more than 35%.) This program also lets people who did not elect COBRA or lost benefits after electing COBRA, to re-elect benefits. If you are eligible to re-elect, you should receive a notice from the health insurance plan. If you think you may be eligible, call the plan and ask about the "Recovery Act COBRA premium reduction program".

If you can't afford the cost of premiums for your whole family, you can get COBRA coverage for just yourself or for just one or more of your dependents.

If you lost your job because of foreign imports and you are eligible for Trade Readjustment Allowance (TRA) assistance, you are eligible for the Health Coverage Tax Credit (HCTC) that can help with the cost of your premiums. For more information on HCTC contact your local Maine Department of Labor CareerCenter.

How long can I get coverage under COBRA?

The COBRA coverage can last up to 18 months after you lost your job. In some instances it can extend to 36 months. A covered employee’s spouse who would lose coverage due to a divorce may choose to continue coverage for a maximum of 36 months. If you or a family member becomes disabled within the first 60 days of COBRA coverage the whole family may be eligible for an additional 11 months of coverage. Specific reporting requirements apply to these extensions. Check the resources below for more information. In all cases, your coverage will end if you don’t make your premium payments on time, or before the end of any grace period.

How do I know if I am eligible? When must I elect this coverage?

If you qualify for COBRA coverage, your employer should send you a letter when your regular coverage ends. If you don’t get this letter, ask your employer if you qualify for COBRA coverage and follow up with a letter to your employer, indicating your possible interest. Keep a copy of this letter.

COBRA sets some important deadlines that you have to meet.

• Your employer must notify the Health Plan Administrator (the company that provides your health coverage) within 30 days of the date your job ended.
• The Health Plan Administrator must notify you of your COBRA rights within the next 14 days.
• You then have 60 days from the date you lost coverage, or from the date the Health Plan Administrator sent you the notice of your COBRA rights, whichever is later, to elect coverage. If you do elect coverage, it will be effective back to the date your insurance ended. Your first premium will cover the cost back to that date.

You can decide anytime within the 60-day period to take COBRA coverage. For example, if you decided not to take COBRA but then discovered you had a health problem on the 55th day after you lost coverage or the date you were notified of your rights (whichever is later), you could sign up at that time as long as you pay the premium back to the date you lost coverage or received notice.

Your employer and the Health Plan Administrator can be subject to substantial fines for failing to provide COBRA coverage. Also, your employer could be found liable in a court case if he or she fails to offer COBRA coverage in violation of the law and you have medical needs. Contact a lawyer if you think you are entitled to COBRA coverage, but you can’t get it.

Important note about this section: To learn more about other health care programs and organizations that may be able to help you and your family, see Section 7: “What are my health care options?”.

For more information:

Consumers for Affordable Health Care
Voice (toll-free): 1 (800) 965-7476

U.S. Department of Labor website:

For questions about the notification process:
U.S. Department of Labor
Employee Benefits Security Administration (EBSA)
Voice (toll-free): 1 (866) 444-3272

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