MD legislature overrides Governor’s veto, enacting paid leave

Beginning January 1, 2025, Maryland employees may begin filing claims for paid family or medical leave benefits. The law, known as the “Time to Care Act of 2022,” or “Family and Medical Leave Insurance” was passed by the legislature 3/31/22, vetoed by the Governor on 4/8/22, and the veto overrode on 4/9/22, before the end of the current legislative session.

All employers with at least one employee in the state are covered by the law. Employees are eligible to take the paid leave if they have worked at least 680 hours over the 12-month period immediately preceding the date on which leave is to begin.

Generally, employees will get up to 12 weeks of leave, but if employees take 12 weeks of leave because of a serious illness, they could take another 12 weeks to bond with a new child for a total of up to 24 weeks.

Employees may take the leave for the following reasons:

• To care for a child during the first year after birth or placement
• To care for a family member with a serious health condition
• Because the employee has a serious health condition
• To care for a service member who is the employee’s next of kin
• To handle a qualifying exigency due to a family member’s military service

Family members include children, parents (including legal guardians and in-laws), spouses, grandparents, grandchildren, and siblings.

Employees must first exhaust company-provided leave before receiving the state paid leave benefits. Time to Care leave will run concurrently with federal FMLA leave as long as the employee is eligible for both, and the reason qualifies for both.

Employers must provide written notice of the law to each newly hired employee and annually thereafter.

Employers with fewer than 15 employees will not be required to contribute to the program, but their employees will contribute and be eligible for paid time off. Contributions begin 10/2/2023. Every two years, beginning 6/1/25, the DOL is to set contribution rates.

Group health benefits must be maintained while on this leave, and employees are to be reinstated. Reinstatement may be denied only for cause, and only to prevent substantial and grievous economic injury to the employer’s operations.

Employees who take the paid leave fraudulently lose their right to the law’s benefits for one year.