Maryland Enacted Mandatory Paid Family and Medical Leave Program

 

On April 9, 2022, Maryland enacted its statutory Family and Medical Leave Insurance (FAMLI) program by the state legislature overriding Gov. Hogan’s veto. The FAMLI program is also known as the “Time to Care Act of 2022” (Senate Bill 275) and applies to employers who have at least one employee working in Maryland. The payroll withholding of the employees’ contributions is scheduled to begin on October 1, 2023, and the benefits will be available to eligible employees starting January 1, 2025.

Below are the key highlights of FAMLI:

Timeline

• June 1, 2023: Maryland Secretary of Labor will set the contribution rates
• October 1, 2023: Contributions to the FAMLI program begin
• January 1, 2025: Benefits will be available to employees

Covered Employers

An employer who employs at least one employee working in Maryland.

Funding of the Program

Beginning October 1, 2023, employees and employers with 15 or more EEs are required to contribute to the state’s Family Medical Leave Insurance (FAMLI) fund. (The Maryland Secretary of Labor will determine the rates by June 1, 2023.)

Eligibility to Take Leave

Employees who have worked at least 680 hours over the 12-month period in Maryland immediately preceding the date on which leave is to begin.

Qualified Reasons for Leave

 Employees’ own serious health condition and for an eligible employee to:

• Care for a family member with a serious health condition
• Bond with a new child (by birth, adoption or fostering) during the first 12 months after the child’s birth or placement
• Care for a next-of-kin service member
• Attend to a qualifying exigency arising out of a family member’s military deployment.

Maximum Benefits Duration

• 12 weeks within the 12-month period following the employee applying for benefits.
• An additional 12 weeks (i.e., total 24 weeks) is provided if the employee received benefits for childcare during the first year of a new child’s birth or adoption and then becomes eligible for benefits due to the employee’s serious health condition (or vice versa).
• Leave can be taken continuously or intermittently (a minimum increment of 4 hours).

Maximum Benefits Amount

Based on each employee’s average weekly wage ranges from $50 to $1,000 cap per week, then indexed to inflation from the subsequent years.

Notice to Employees

Employers must provide written notice to each covered employee to inform them of the employee’s rights and duties under the FAMLI program when an employee is hired and annually thereafter. Additionally, employers must provide the notice when an employee requests FAMLI leave. The Maryland Department of Labor will develop standard notices for employers to use in the future.

Employers who have at least one employee in Maryland should be aware of this new update.

Senate Bill 275 »