Maryland: More Delays to Paid Family and Medical Leave Program
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APPLIES TO All Employers with Employees in MD |
EFFECTIVE Pending |
QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion
Maryland is modifying and delaying the implementation of the Family and Medical Leave Insurance Program (FAMLI) yet again, with a proposed effective date of October 1, 2024. HB 57 modifies provisions of law governing application, administration, and enforcement of the Family and Medical Leave Insurance Program, including provisions related to the payment of contributions, the calculation of the average weekly wage, the submission of claims for benefits, the application of FAMLI to self-employed individuals, the Family and Medical Leave Insurance Fund, the satisfaction of FAMLI requirements through private employer plans or insurance, and the use of contributions or other funding.
Contributions and Benefits. Employee contributions, contributions of employers with 15 or more employees, and contributions of self-employed individuals opting to participate in FAMLI will begin on July 1, 2025, with the Maryland Department of Labor (MDOL) setting the contribution rate on February 1, 2025. Covered individuals can begin submitting claims for benefits starting July 1, 2026.
Calculation of Average Weekly Wage. An individual’s average weekly wage will be calculated as the total wages received by the covered individual in the highest of the previous four completed calendar quarters for which quarterly reports have been required, divided by 13.
Private Plans. Employers can satisfy FAMLI’s requirements through a private plan with employer-provided benefits, through insurance, or a combination of both, so long as the plan meets or exceeds the rights, protections, and benefits provided to covered employees. The MDOL will establish reasonable criteria to determine if employer-provided benefits meet the requirements of FAMLI. These criteria may include the number of employees, capitalization, bondedness, and whether the employer is a government employer. Employers with private plans may not deduct more than 50% of the contribution amount set by the MDOL.
Wages for Self-Employed. The definition of wages for self-employed individuals now includes wages earned from a C corporation or an S corporation if the income, pay, or leave is paid to the owner who is the sole employee of a C or S corporation.
Disclosure of PII. The MDOL cannot disclose the personal identifying information of individuals who applied for or received FAMLI benefits, individuals whose employment data was submitted by the employer, or self-employed individuals who submitted data to the MDOL.
Care of a Service Member. The qualifying reasons for FAMLI benefits have been clarified to cover care for a service member for whom the covered individual is next of kin.
Funding. Funding for FAMLI will now also include application and application renewal fees as well as assessed contributions and interest for an employer’s or self-employed individual’s failure to pay contributions.
The bill has been sent to Governor Wes Moore for his signature. Several of the changes were proposed by the Governor’s office, so it is anticipated that it will be signed into law.
Action Items
- Review and update leave policies for potential changes that may need to be made by 2025.
- Review payroll processes for collecting contributions.
- Train appropriate personnel on the requirements.
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