Governor Wes Moore of Maryland has recently signed a bill that introduces further adjustments to the Family and Medical Leave Insurance Program, also recognized as the Time to Care Act.
Back in 2022, the Maryland General Assembly enacted the Family and Medical Leave Insurance Program (“Program”). This initiative is designed to grant Maryland workers up to 12 weeks of paid family and medical leave, facilitated through a state fund sustained by contributions from both employees and employers. Initially slated to commence contributions from employers and employees on October 1, 2023, and provide benefits to covered employees starting January 1, 2025, the timeline has seen shifts due to legislative amendments.
Last year, an amendment to the law, among other provisions, postponed the collection of contributions and disbursement of benefits by a year, as detailed by Jackson Lewis. In the latest legislative session, the enactment of SB485 ushered in further alterations, setting fresh dates for contributions and benefits under the Program.
Altered Commencement Dates:
Maryland Employment Lawyers advise that contributions are now slated to kick off on July 1, 2025, with covered employees becoming eligible for benefits from July 1, 2026. By February 1, 2025, the secretary of labor will determine the contribution rate. Previously, the secretary had established a rate of .90% for employers with a workforce of at least 15 employees, but this is likely to be revised following the updated legislation. Once set, the rate will be effective from July 1, 2025, through June 30, 2026.
Minor Revisions Impacting Employers:
Maryland Employment Lawyers note that two additional modifications will affect employers and their adherence to the Program. Firstly, the definition of “wages” now aligns with that of the Maryland Unemployment Insurance, streamlining wage calculations across programs for employers. Secondly, employers electing to utilize a private plan in lieu of the Program will be subject to application and renewal fees, with the Department of Labor establishing the fee structure.
Draft regulations outlining the implementation of the Program have been issued by the secretary of labor. It is anticipated that final regulations will offer further clarity to employers regarding compliance with the law.