Time to Care Act Delayed and Modified

On May 3, 2023, Gov. Moore approved SB0828/HB0988, which delays the implementation Maryland’s paid family and medical leave program, known as the Time to Care Act of 2022. The Time to Care Act applies to employers with at least one employee in Maryland, though employers with fewer than fifteen employees are not required to make employer contributions. More information on the Time to Care Act can be found in the April 28, 2022, edition of Compliance Corner.

Most notably, contributions have been delayed until October 1, 2024 (previously, October 1, 2023). Benefits will now be available to eligible employees beginning January 1, 2026 (previously, January 1, 2025). Other notable modifications include:

• The definition of family member is expanded to include domestic partners;
• The requirement for employees to exhaust paid vacation, sick leave or other paid time off provided under their employers’ policies before or while receiving benefits is eliminated;
• The premium contribution allocation between an employer and employees will be a 50-50 split;
• Total contributions may not exceed 1.2% of an employee’s wages (applied to all wages up to and including the Social Security wage base);
• Contribution rates will be set by October 1, 2023; and
• Regulations must be issued by January 1, 2024.

This delay allows additional time to prepare for meeting the Time to Care Act’s requirements. Employers with at least one employee in Maryland should monitor the state’s Department of Labor website for updates.

SB0828/HB0988 »