Maryland has enacted legislation (Senate Bill 828) that will delay implementation of a law 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, Maryland enacted legislation, Senate Bill 275, in 2022. Under the law, employees will be entitled 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.
Senate Bill 828 makes changes to the timeline for implementing the program and amends and clarifies other aspects of the law.
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As Enacted by Senate Bill 275
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As Amended by Senate Bill 828
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Contributions by covered employees and employers with 15 or more employees were set to begin Oct. 1, 2023.
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Contributions by covered employees and employers with 15 or more employees will begin Oct. 1, 2024.
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Beginning Jan. 1, 2025, employees would have been entitled to begin receiving wage-replacement benefits when they take leave for a covered reason.
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Beginning Jan. 1, 2026, employees will be entitled to begin receiving wage-replacement benefits when they take leave for a covered reason.
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Employers with 15 or more employees would have paid 25 percent of the contribution and employees would have paid 75 percent of it. The split would have then been adjusted every two years.
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Employers with 15 or more employees will be required to pay 50 percent of the contribution, with employees paying the other half. The contribution split won’t be subject to adjustment by the state. An amendment also clarifies that employers may elect to pay all or part of the employee contribution, provided they notify the employee of the actual contribution rates the employer and employee will pay.
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One of the covered reasons for leave is to care for a child during the first year after their birth or placement through foster care, kinship care or adoption.
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An amendment clarifies that employees may also take the leave to bond with the child.
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Employees were required to exhaust all their employer-provided leave that isn’t required by law before receiving benefits under the program.
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Employees may not be required to exhaust their paid vacation, paid sick leave or other paid time off before, or while, receiving benefits under the program. However, employers may give employees the option of supplementing their wage-replacement benefits with paid vacation, paid sick leave or other paid time off so they receive 100 percent of their regular pay. An employer can also require that benefits under the program be coordinated with benefits or leave provided under another employer policy due to parental care, family care, or military leave or disability policy.
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Senate Bill 828 also clarifies:
- The rules for employers that want to establish a private plan to satisfy the requirements.
- The definition of wages for the purposes of the program.
See the text of the law for details.
Next steps
- Review leave policies and update if necessary.
- Watch for the sample notice that must be provided to employees.
- Once published, provide the sample notice to new hires and existing employees.
- Prepare to begin making contributions on Oct. 1, 2024.
- Train supervisors on how to handle leave requests.
- Begin providing leave for the covered reasons by Jan. 1, 2026.
Please contact your ADP Service Representative with any questions.