Maryland has enacted legislation that will delay implementation of a program that will provide job protection and wage-replacement benefits to employees who need time off from work for certain family and medical reasons.
The Details
By way of background, in 2022, Maryland enacted a law that entitles employees to job protection and wage-replacement benefits, if they need time off from work for certain family and medical reasons. The wage-replacement benefits will be funded by a payroll tax paid by covered employees and employers with 15 or more employees.
The law was subsequently amended in 2023 (by Senate Bill 828) to delay implementation and make other changes.
The recently enacted Senate Bill 485 delays implementation further and clarifies other aspects of the law.
As Amended by Senate Bill 828
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As Amended by Senate Bill 485
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Contributions by covered employees and employers with 15 or more employees would have begun Oct. 1, 2024.
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Contributions by covered employees and employers with 15 or more employees will begin July 1, 2025.
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Beginning Jan. 1, 2026, employees would have been entitled to begin receiving wage-replacement benefits when they take leave for a covered reason.
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Beginning July 1, 2026,employees will be entitled to begin receiving wage-replacement benefits when they take leave for a covered reason.
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Senate Bill 485 also amends the definition of a “covered employee” to one who has worked at least 680 hours performing services in the state over the four most recently completed quarters for which reports have been required immediately preceding the date on which leave is to begin.
Senate Bill 485 also clarifies that an employer that adopts a state-approved private plan to comply with the law is prohibited from deducting more than 50 percent of the contribution amount from an employee’s wages.
Next Steps
Maryland employers should:
- Prepare to comply with the paid family and medical leave requirements by the updated deadlines.
- Communicate the changes to employees.
- Review leave policies and update if necessary.
- ADP® TotalSource will communicate further how Maryland paid family and medical leave contributions will be processed and remitted closer to the delayed implementation date.