Maryland will join the nine states and the District of Columbia in enacting its own paid family and medical leave.

Maryland Sen. Antonio L. Hayes (D-Baltimore City) and Del. Kris Valderrama (D-Prince George’s County) sponsored the Time to Care Act of 2022 (the “Act”). On March 31, 2022, Senate Bill 275 (the Act) passed the legislature and was submitted to Governor Hogan, who ultimately vetoed the bill on April 8, 2022. However, on April 9, 2022, legislators in the Maryland General Assembly voted to override the veto and ultimately passed the Act.

Some notable components of the new legislation:

• Maryland employees will be provided up to 12 weeks of paid family and medical leave (or up to 24 weeks in certain situations) following the birth of a new child, to care for a close relative/family member, to deal with the needs of family in connection with military deployment, and/or to care for their own serious health needs.
• Employees can qualify for up to 24 weeks of paid leave if they take parental leave and need additional time to tend to a serious health condition that prohibits them from performing the functions of their job.[1]
• The Act is applicable to both full- and part-time employees, as long as they have worked at least 680 hours within a 12-month period.
• The leave may be taken continuously or on an intermittent basis. However, if taken intermittently, it cannot be taken in less than four-hour increments at a time.
• The law will apply to both the private and public sector. And, there are also provisions for self-employed individuals to participate.

What this means for the employer and employee, and timelines:

• The Act establishes the Maryland Family and Medical Leave Insurance Fund (the “Fund”). This Fund is administered by the Maryland Secretary of Labor, who has been tasked with adopting regulations for the Fund by June 1, 2023.
• Employees, employers, and self-employed individuals may begin contributing to the Fund as of October 1, 2023.
• Employers with 15 or more employees will be required to contribute to the Fund.
• Beginning on January 1, 2025, employees taking leave under the Act will be paid a partial wage replacement based on a range of $50 to $1,000 per week. The pay scale will vary based on income with lower-income workers receiving the highest portion of their income, up to 90%.
• The Act also provides that employers will have to ensure that employees have job protection, and the employer will “restore the covered individual to an equivalent position of employment,” upon return from leave.[1]
• Employers may be eligible for an exemption under the Act but will need to submit a request to the Maryland Department of Labor. Employers may qualify for an exemption if they provide eligible employees with benefits and/or insurance that meets or exceeds the benefits and protections under the Act.

While benefits under the Act will not start to be paid out until January 1, 2025, employers should be mindful of the regulations to be put in place by the Maryland Secretary of Labor to administer the Fund. We will also closely monitor any developments and are happy to discuss the program and process with you further.

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