MD Small Businesses: You will be impacted!
Are you familiar with the Maryland Family Act?
The Maryland Family Act is not a single law, but refers to a collection of state laws, including the Time to Care Act (establishing paid family and medical leave), the Maryland Parental Leave Act (unpaid parental leave), and the Maryland Healthy Working Families Act (paid sick and safe leave).
***THIS ARTICLE FOCUSES PRIMARILY ON THE TIME TO ACT / FAMLI PROGRAM***
The Time to Care Act requires companies to provide job-protected, wage-replaced leave for childbirth, adoption, family illness, or military service, with contributions starting in January 2027 and benefits no earlier than January 2028, while complementing existing sick and safe leave laws and regulations.
Benefits to Employees: Up to $1000/week for up to 12 weeks of paid leave per 12 month period.
Eligibility: MD-based company employees sitting in the state of MD. FT , PT, and seasonal employees are eligible after working 680 hours prior in the 12 months leading up to their to their request.
Employers Must:
Contribute the state’s mandated contribution amount into a state-held Trust*
Hold the employee’s position for their return
Submit quarterly wage and hour reports to the state
*Businesses with 15 or fewer total employees can pass along the contribution to the employees
Concerns:
What Can We do Now?
Reach out to your state senators and delegation explaining the detriment to your small business:
Your financial bottom line
The absence of one or more employees for up to 12 weeks at a time.
Start planning financially for the contribution submission starting January 1, 2027:
The contribution per company currently cannot exceed 1.2% of wages, so you can use that as the max amount you would need to budget for.
Private plans will be made available (not on the market as of the time/date of this article) and will incur a $100-$1000 application fee to the state.
Self-funded plans will also be available at a $1000 application fee to the state.
NOTE: This is a high-level overview, as many aspects of this law are still in development.
For more information about the FAMLI program or what you can do to oppose its implementation, please reach out to janellegardiner@consultjag.com
Need to know which state senators and delegates are proponents of this program? Contact me!
Looking for templates to reach out to your representatives? Contact me!
Have additional questions? Contact me!