Maryland joins growing list of states with paid family leave programs

Maryland became the 10th state (along with the District of Columbia) to enact a paid family leave program during its recently completed legislative session. The measure will be funded by tax contributions from employers and employees, who will be able to receive income replacement for worktime missed because of qualifying family and medical circumstances. Both parties will begin making contributions to the program in October 2023, and benefits will become available beginning in January 2025. Let’s take a closer look at the details of the new statute, which marks a significant change in the state’s employment law landscape.

Who’s covered

On April 9, 2022, the Maryland General Assembly voted to override Governor Larry Hogan’s veto of the Time to Care Act of 2022. The Act creates a state-run insurance program under which employees will be eligible to receive pay when absent from work to attend to qualifying family responsibilities and personal medical issues.

The Act covers any employer with one or more employees in Maryland. Any employee who has worked at least 680 hours for the employer within the 12-month period preceding a covered absence will be eligible for the benefits.

Where funding is coming from

The program will be funded by mandatory contributions from payroll deductions collected from employees as well as contributions from employers with at least 15 employees. Although individuals employed by employers with fewer than 15 employees will be eligible for benefits, the Act provides for the payment of contributions only by employers with 15 or more workers.