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Employment Law Update: Once Again, The Implementation of The Paid Family Leave Program Is Postponed by Maryland General Assembly

Date: May 23, 2024
Previous installments of the Employment Law Update have discussed the status of Maryland’s paid family leave program, that will establish a process under which employees, who need to miss work for qualifying reasons, can submit claims to the state government for reimbursement of compensation lost because of their absences. The timetable for implementation of the program – originally created in 2022 – was extended last year under a bill passed by the General Assembly during its 2023 legislative session. 
 
Shortly before the close of this year’s legislative session, the General Assembly passed a bill further extending the implementation timeframe. Under the new law, the tax contributions that employers and employees will be making to fund the program will not commence until July 1, 2025 (as opposed to the prior starting date of October 1, 2024). The date on which benefits will become available through the program has likewise been extended, from January 1, 2026 to July 1, 2026. 
 
This change will give employers additional time to prepare for compliance with the requirements of the paid family leave program. The program will mark a significant change for Maryland employers who will need to coordinate their own paid time off benefits with a state-administered program that provides compensation to employees for qualifying absences, including those needed to care for a family member with a serious health condition, bond with a new child, care for a servicemember, or address an employee’s own health condition. Employers should receive further clarity regarding the program’s structure this Summer, when the State is scheduled to issue regulations governing the program. The Employment Law Update will continue to track and report on those developments. Of course, please do not hesitate to reach out to Whiteford’s Labor and Employment Law Team with any questions you have regarding compliance with this program.
 
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.