Maryland: Changes Made to Paid Family and Medical Leave Insurance Program

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Quick Look

  • Maryland employers have additional time to implement the requirements of the Paid Family and Medical Leave insurance program.
  • Contributions to the program now begin on October 1, 2024 with benefits being issued starting January 1, 2026.

Discussion

The Time to Care Act of 2022 adopted a statewide family and medical leave program. It provides 12 weeks of paid family and medical leave per benefit year to: 1) care for or bond with a newborn child or child newly placed for adoption, foster care, or kinship care; 2) care for a family member with a serious health condition; 3) attend to an employee’s own serious health condition that prevents the employee from performing functions of a position; 4) care for a next of kin military service member with a serious health condition resulting from military service; and 5) attend to qualifying military exigencies. Contributions were set to begin on October 1, 2023 with benefits being issued starting January 1, 2025.

SB 0829 makes several changes to the implementation of the program. Contributions will now begin on October 1, 2024 with benefits being issued starting January 1, 2026. Contributions will be split 50/50 between employers and employees. Contributions may not exceed 1.2% of an employee’s wages. Wages include hourly wage or salary, commission, compensatory pay, severance pay, standby pay, tip or gratuity, holiday or vacation pay, and any other paid leave. The initial contribution rate goes into effect on October 1, 2024 and will be in place until June 30, 2026. Rates will then be set on an annual basis on or before February 1 of each year.

Paid leave under the law will run concurrently with the Family and Medical Leave Act, if eligible. Employers also cannot require an employee to exhaust or use certain paid leave benefits before or while receiving program benefits. The law also added domestic partners of covered employees as a covered family member. Employers should continue to look for additional regulations implementing the law.

 

Action Items

  1. Have leaves of absence policies updated.
  2. Update payroll systems to accommodate additional deductions for contributions.
  3. Have appropriate personnel trained on the requirements.
  4. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2023 ManagEase