On Saturday, April 9, the Maryland General Assembly closed its legislative session by passing the Time to Care Act of 2022, overriding Governor Hogan's earlier veto of Senate Bill 275. As such, Maryland has now joined just nine (9) other states and the District of Columbia in enacting a paid family leave statute that covers all Maryland employers employing at least one person in the state.
The Maryland Department of Labor will issue implementing regulations by June 1, 2023. But beginning on October 1, 2023, businesses with 15 or more employees, all employees, and all self-employed individuals who elect to participate in the program will be required to contribute to the state's Family Medical Leave Insurance (FAMLI) fund. This contribution is essentially a payroll tax to be split between employers and employees – with the tax rate to be determined through a Maryland Department of Labor study. Employers may elect instead to self-fund a paid family leave plan that meets or exceeds the benefits of the state program, but such a self-funded plan must also be approved by the Maryland Department of Labor. Then, starting on January 1, 2025, employees will be able to apply for benefits when the need for covered leave arises, but only after exhausting all other employer-provided leave, such as PTO or sick leave.
Under the new Maryland law, covered employees will be able to take leave for reasons similar to those allowed under the federal Family Medical Leave Act (FMLA), including...
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