Maryland’s 2023 legislative session ended with new laws affecting employers in Maryland. Governor Wes Moore, a Democrat, signed his Fair Wage Act of 2023, which raises Maryland’s minimum wage to $15 an hour, starting January 1, 2024. The Maryland legislature also passed amendments to family and medical leave in Maryland. A program currently awaiting the governor’s signature.
Changes to Maryland’s Paid Family and Medical Leave Insurance Program
The Maryland Legislature recently passed Senate Bill (SB) 828changes several provisions of Maryland’s Family and Medical Leave Insurance (FAMLI) program established by 2022 Time to Care Act.
Importantly, SB 828 postpones several dates governing the implementation of the Time to Care Act.Eligible employers (those who have 15 or more employees for her) have delayed the start of contributions to the program From October 1, 2023 to October 1, 2024. SB0828 also enforces the date employees can submit claims for benefits from January 1, 2025. January 1, 2026Despite these changes, the Maryland Secretary of Labor must set combined employer and employee contribution rates on or around October 1, 2023. This rate is valid from October 1, 2024 until he June 30, 2026. The tax rate shall not exceed her 1.2% of the employee’s wages.
SB 828 also makes changes to the cost-sharing formula for benefits under the FAMLI fund. The Time to Care Act of 2022 originally considered a dual cost-sharing scheme that would split contributions between employers and employees at a rate of 75 percent to 25 percent, but the 75 percent burden has been changed. The party responsible is a biennial survey by the Maryland Department of Labor. SB 828 does away with the previous method in favor of setting the cost sharing formula to a 50/50 split. The employer contributes her 50% of the total contribution rate for each covered employee, and the covered employee contributes her remaining 50%.
SB 828 also updates the definition of the Time to Care Act to include domestic partners as covered “family members.”[s]”, and expands the reasons individuals are eligible to apply for FAMLI benefits. Reasons include time consuming care. or combine Child leave for the “first year after the child’s birth” as well as an equal amount of leave for individuals adopting or raising a child. In addition, employees “to care for family members with serious health conditions” and “to attend to serious health conditions that would render the covered individual incapable of functioning in the position of the covered individual.” , for military personnel who are close relatives of the covered individual, who have serious health conditions as a result of military service,” or “to respond to eligible emergencies arising from the deployment of military personnel who are family members.”
The bill also allows greater flexibility as to when individuals can apply for FAMLI benefits. An employee can submit a benefit request for up to 60 days starting 60 days before her scheduled leave start date. rear Start date of vacation. Among other things, the bill amends his 2022 law to allow employees to take paid leave, sick leave, or other benefits provided under the employer’s policy before or while receiving her FAMLI benefits. Eliminate the need to deplete or use paid time off. However, an employer may require her FAMLI benefits to be coordinated with other benefits or leave. The covered individual and employer may agree to use paid leave and her FAMLI benefits to replace up to 100% of the covered individual’s average weekly salary during the FAMLI leave period.
SB 828 also reduces the specificity required in the leave certifications that individuals must provide to support their FAMLI leave benefits. Individuals must specify whether they take leave continuously or intermittently, but are no longer required to provide a statement proving they have a “serious health condition.” Instead, they only need to prove their “inability to perform the functions” of their position. SB 828 does not affect the requirement that an individual must notify her employer of her intention to take leave in writing at least 30 days in advance.
Maryland employers are awaiting FAMLI regulation, which is expected to be released by the Maryland Department of Labor and Industry around June 1, 2023.
Accelerating Minimum Wage Increase in Maryland
On April 11, 2023, Governor Moore signed into law. SB555, the Fair Wages Act 2023. The Fair Wage Act eliminates Maryland’s annual minimum wage hike based on an employer’s size and his 2025 and his 2026 Consumer Price Index changes. Wages of all employers. January 1, 2024advance the start date by two years to require all employers in Maryland to pay $15 per hour.
Maryland employers may also want to keep an eye on minimum wage trends at the county level. On July 1, 2023, Montgomery County’s hourly minimum wage rate will increase in line with the county’s 2017 year. Bill No. 28-17 To the next level:
- Large companies (50+ employees): $16.70
- Medium employers (11-50 employees): $15.00
- Small employers (10 employees or less): $14.50
Both Montgomery County and Maryland have issued new minimum wage and overtime posters that reflect minimum wage rates as of January 1, 2023. Employers in Maryland are advised to ensure their pay systems and posts are up to date in order to anticipate these new hourly rates. minimum wage rate.
