EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0828*
SENATE BILL 828
K3 3lr1124
By: Senator Hayes
Introduced and read first time: February 6, 2023
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Family and Medical Leave Insurance Program – Modifications 2
FOR the purpose of modifying the Family and Medical Leave Insurance Program by 3
clarifying and altering certain provisions relating to the administration of the 4
Program, including provisions related to the provision of benefits, the payment of 5
contributions, and appeals; establishing the employer and employee shares of the 6
total rate of contribution; requiring the State to pay for certain contributions for 7
certain employers and certain covered employees; repealing the requirement that a 8
covered individual exhaust all employer–provided leave that is not required to be 9
provided under law before receiving benefits under the Program; prohibiting a 10
covered individual from being required to use certain leave before, or while, receiving 11
benefits under the Program; authorizing a covered individual and an employer to 12
agree to use certain leave to replace certain wages during the period of leave for 13
which benefits are received under the Program; and generally relating to the Family 14
Medical Leave Insurance Program. 15
BY repealing and reenacting, with amendments, 16
Article – Labor and Employment 17
Section 8.3–101, 8.3–302, 8.3–403, 8.3–406, 8.3–504(d), 8.3–505, 8.3–601, 8.3–701 18
through 8.3–703, 8.3–705, 8.3–801, and 8.3–906 19
Annotated Code of Maryland 20
(2016 Replacement Volume and 2022 Supplement) 21
BY repealing and reenacting, without amendments, 22
Article – Labor and Employment 23
Section 8.3–301 24
Annotated Code of Maryland 25
(2016 Replacement Volume and 2022 Supplement) 26
BY repealing 27
Chapter 48 of the Acts of the General Assembly of 2022 28 2 SENATE BILL 828
Section 3 1
BY repealing and reenacting, with amendments, 2
Article – Labor and Employment 3
Section 8.3–601(h) 4
Annotated Code of Maryland 5
(2016 Replacement Volume and 2022 Supplement) 6
(As enacted by Section 1 of this Act) 7
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
That the Laws of Maryland read as follows: 9
Article – Labor and Employment 10
8.3–101. 11
(a) In this title the following words have the meanings indicated. 12
(b) “Application year” means the 12–month period beginning on the [first day] 13
SUNDAY of the calendar week [in] FOR which [a covered individual files an application 14
for] benefits ARE APPROVED . 15
(c) “Benefits” means the money payable under this title to a covered individual. 16
(d) “Covered employee” means an employee who has worked at least 680 hours 17
over the 12–month period immediately preceding the date on which leave is to begin. 18
(e) “Covered individual” means a covered employee or a self–employed individual 19
who elects to participate in the Program under § 8.3–201 of this title. 20
(f) “Department” means the Maryland Department of Labor. 21
(g) “Deployment” means a service member acting under official orders who, on 22
any day, is performing service in a training exercise or operation at a location or under 23
circumstances that make it impossible or infeasible for the service member to spend 24
off–duty time in the housing in which the service member resides when on garrison duty 25
at the service member’s permanent duty station or homeport. 26
(h) (1) “Employer” means a person or governmental entity that employs at 27
least one individual in the State. 28
(2) “Employer” does not include an individual who: 29
(i) is the sole owner of a sole proprietorship, limited liability 30
company, C corporation, or S corporation; and 31
SENATE BILL 828 3
(ii) is the only individual employed by the sole proprietorship, 1
limited liability company, C corporation, or S corporation. 2
(i) “Family member” means: 3
(1) a biological child, an adopted child, a foster child, or a stepchild of the 4
covered individual; 5
(2) a child for whom the covered individual has legal or physical custody or 6
guardianship; 7
(3) a child for whom the covered individual stands in loco parentis, 8
regardless of the child’s age; 9
(4) a biological parent, an adoptive parent, a foster parent, or a stepparent 10
of the covered individual or of the covered individual’s spouse; 11
(5) the legal guardian of the covered individual or the ward of the covered 12
individual or of the covered individual’s spouse; 13
(6) an individual who acted as a parent or stood in loco parentis to the 14
covered individual or the covered individual’s spouse when the covered individual or the 15
covered individual’s spouse was a minor; 16
(7) the spouse of the covered individual; 17
(8) A DOMESTIC PARTNER O F THE COVERED INDIVI DUAL; 18
(9) a biological grandparent, an adopted grandparent, a f oster 19
grandparent, or a stepgrandparent of the covered individual; 20
[(9)] (10) a biological grandchild, an adopted grandchild, a foster 21
grandchild, or a stepgrandchild of the covered individual; or 22
[(10)] (11) a biological sibling, an adopted sibling, a foster sibling, or a 23
stepsibling of the covered individual. 24
(j) “Fund” means the Family and Medical Leave Insurance Fund established 25
under § 8.3–501 of this title. 26
(k) “Governmental entity” has the meaning stated in § 8–101 of this article. 27
(l) “Program” means the Family and Medical Leave Insurance Program 28
established under § 8.3–301 of this title. 29
(m) “Qualifying exigency” means any of the following reasons for which leave may 30
be needed by a family member of a service member: 31 4 SENATE BILL 828
(1) because the service member has received notice of deployment within 7 1
days before the deployment is to begin; 2
(2) to attend military events and related activities including family support 3
programs related to the active duty of the service member; 4
(3) to arrange, provide, or attend child care or school activities only when 5
the service member is on active duty call or active duty status; 6
(4) to make financial and legal arrangements for the service member’s 7
absence or because of the absence; 8
(5) to attend counseling that: 9
(i) is needed due to the active duty or call to active duty status of 10
the service member; and 11
(ii) is provided by an individual who is not a licensed health care 12
provider; 13
(6) to spend up to 15 calendar days with a service member who is on 14
short–term temporary rest and recuperation leave during the period of deployment; 15
(7) to attend postdeployment activities including reintegration services for 16
a period of 90 days immediately following the termination of active status; 17
(8) to attend to matters related to the death of the service member while 18
on active duty status; 19
(9) to arrange for or provide alternative care for a parent of the service 20
member when the parent is incapable of self–care and the covered active duty or call to 21
active duty necessitates a change; or 22
(10) because of any other issues that arise out of active duty or a call to 23
active duty that an employer and covered employee agree should be covered. 24
(n) “Secretary” means the Secretary of Labor. 25
(o) (1) “Serious health condition” means an illness, an injury, an impairment, 26
or a physical or mental condition that involves: 27
(i) inpatient care in a hospital, hospice, or residential health care 28
facility; 29
(ii) continued treatment by a licensed health care provider; or 30
SENATE BILL 828 5
(iii) continued treatment or supervision at home by a licensed health 1
care provider or other competent individual under the supervision of a licensed health care 2
provider. 3
(2) “Serious health condition” includes an illness, an injury, an 4
impairment, or a physical or mental condition described in paragraph (1) of this subsection 5
that continues over an extended period of time and requires intermittent treatment. 6
(p) “Service member” means an individual who is an active duty or former 7
member of: 8
(1) the United States armed forces; 9
(2) a reserve component of the United States armed forces; or 10
(3) the National Guard of any state. 11
(q) “Treatment” includes: 12
(1) examinations or testing to determine the extent to which a serious 13
health condition exists or persists; 14
(2) ongoing or periodic evaluations of the serious health condition; and 15
(3) actual treatment by a health care provider. 16
(R) “WAGES” HAS THE MEANING STAT ED IN: 17
(1) FOR A COVERED EMPLOY EE, § 3–501(C) OF THIS ARTICLE; AND 18
(2) FOR A SELF–EMPLOYED INDIVIDUAL , 26 U.S.C. § 1402(B). 19
8.3–301. 20
There is a Family and Medical Leave Insurance Program in the Department. 21
8.3–302. 22
The purpose of the Program is to provide temporary benefits to a covered individual 23
who is taking leave from employment: 24
(1) (I) to care for OR BOND WITH a child OF THE COVERED 25
INDIVIDUAL during the first year after the child’s birth; or [after the placement of the] 26
(II) DURING THE PROC ESS THROUGH WHICH A child IS BEING 27
PLACED WITH THE COVERED INDIVIDUAL through foster care, kinship care, or adoption 28 6 SENATE BILL 828
AND TO CARE FOR AND BOND WITH THE CHILD DURING THE FIRST YEA R AFTER THE 1
PLACEMENT ; 2
(2) to care for a family member with a serious health condition; 3
(3) because the covered individual has a serious health condition that 4
results in the covered individual being unable to perform the functions of the covered 5
individual’s position; 6
(4) to care for a service member who is the covered individual’s next of kin; 7
or 8
(5) because the covered individual has a qualifying exigency arising out of 9
the deployment of a service member who is a family member of the covered individual. 10
8.3–403. 11
(a) The Secretary, in consultation with other State agencies and relevant 12
stakeholders, shall: 13
(1) subject to subsection (b) of this section, adopt regulations necessary to 14
carry out this title; 15
(2) establish procedures and forms for filing claims for benefits, including: 16
(i) procedures for notifying an employer within [5 business days 17
after an employee of the employer files a claim for benefits under this title] 3 BUSINESS 18
DAYS AFTER ANY OF THE FOLLOWING OCC URS: 19
1. AN EMPLOYEE FILES AN ELECTRONIC APPLIC ATION 20
REGARDING A CLAIM FOR BENEFITS; 21
2. AN EMPLOYEE ’S PAPER APPLICATION REGARDING A 22
CLAIM FOR BENEFITS IS PROCESSED; 23
3. A DETERMINATION REGA RDING A CLAIM FOR 24
BENEFITS IS MADE; 25
4. AN APPEAL FOR A DETERMINATION REGARD ING A 26
CLAIM FOR BENEFITS IS FILED; OR 27
5. A CHANGE IS MADE TO A DETERMINAT ION REGARDING 28
A CLAIM FOR BENEFITS ; and 29
SENATE BILL 828 7
(ii) notices of elections by self–employed individuals for benefits 1
under § 8.3–201 of this title; 2
(3) use information–sharing and integration technology to facilitate the 3
disclosure of relevant information or records needed for the administration of this title; and 4
(4) subject to subsection (d) of this section, carry out a public education 5
program. 6
(b) The regulations adopted under subsection (a)(1) of this section shall be 7
consistent with regulations adopted to implement the federal Family and Medical Leave 8
Act and any relevant State laws to the extent that the adopted regulations do not conflict 9
with this title. 10
(c) (1) Subject to paragraph (2) of this subsection, a covered individual under 11
§ 8.3–302(2), (3), (4), or (5) of this title shall provide certification for a claim for benefits 12
under this title. 13
(2) A certification for a claim for benefits for a covered individual under § 14
8.3–302(2), (3), or (4) of this title shall include: 15
(I) FOR THE PURPOSE OF S UPPORTING THE CLAIM FO R 16
BENEFIT PAYMENTS , THE FIRST DATE ON WH ICH THE COVERED INDI VIDUAL TOOK 17
OR INTENDS TO TAKE LEAVE FROM EMPLOYMEN T AND WHETHER THE LE AVE WILL 18
OR IS INTENDED TO BE TAKEN FOR A CONTI NUOUS PERIOD OF TIME OR 19
INTERMITTENTLY ; 20
[(i)] (II) the date on which the serious health condition of the 21
family member, covered individual, or service member commenced; 22
[(ii)] (III) the probable duration of the serious health condition; 23
[(iii)] (IV) the appropriate facts related to the serious health 24
condition within the knowledge of the licensed health care provider; 25
[(iv)] (V) 1. For a claim for benefits under § 8.3–302(2) of this 26
title, a statement that the covered individual needs to care for a family member and an 27
estimate of the amount of time required to provide the care; or 28
2. for a claim for benefits under § 8.3–302(3) of this title, a 29
statement that the covered individual [is unable] HAS A SERIOUS HEALTH CONDITION 30
THAT PREVENTS THE CO VERED INDIVIDUAL FRO M BEING ABLE to perform [the] ONE 31
OR MORE functions of the covered individual’s position; and 32
[(v)] (VI) 1. For a certification for intermittent leave under § 33
8.3–302(2) or (4) of this title, a statement that the covered individual needs to care for a 34 8 SENATE BILL 828
family member or service member and the expected FREQUENCY AND duration of the 1
intermittent leave; or 2
2. for a certification of intermittent leave under § 8.3–302(3) 3
of this title, a statement that the covered individual [is unable] HAS A SERIOUS HEALTH 4
CONDITION THAT PREVE NTS THE COVERED INDIVIDUA L FROM BEING ABLE to 5
perform [the] ONE OR MORE functions of the covered individual’s position and the expected 6
FREQUENCY AND duration of the intermittent leave. 7
(3) The Secretary shall establish: 8
(i) standards in regulation for the certification of claims for benefits 9
under § 8.3–302(5) of this title; 10
(ii) standards for verifying the identity of a family member OR NEXT 11
OF KIN for a claim for benefits under § 8.3–302(2), (4), OR (5) of this title; and 12
(iii) procedures for an employer to provide evidence of suspected 13
fraud to the Secretary. 14
(d) (1) The Secretary may use a portion of the funds paid under § 8.3–601 of 15
this title or other available funding to pay for and carry out the requirements under 16
subsection (a)(4) of this section. 17
(2) Materials used in the public education program required under 18
subsection (a)(4) of this section shall be made available in English and Spanish. 19
8.3–406. 20
(a) On or before September 1 each year, the Secretary shall submit to the 21
Governor and, in accordance with § 2–1257 of the State Government Article, the General 22
Assembly an annual report on the administration and operation of [this title] THE 23
PROGRAM during the immediately preceding fiscal year. 24
(b) The annual report shall include information regarding: 25
(1) [projected and] actual Program participation rates THAT INCLUDES: 26
(I) THE NUMBER OF CLAIMS FOR BENEFITS SUBMITT ED, BOTH 27
IN TOTAL AND FOR EAC H CATEGORY LISTED IN § 8.3–302 OF THIS TITLE; 28
(II) THE NUMBER OF CLAIMS INCLUDED UNDER ITEM (I) OF THIS 29
ITEM BROKEN DOWN BY: 30
1. JURISDICTION; 31 SENATE BILL 828 9
2. RACE AND ETHNICITY ; 1
3. GENDER; 2
4. ZIP CODE; AND 3
5. AGE; 4
(III) THE NUMBER OF CLAIMS FOR BENEFITS APPROVE D, BOTH 5
IN TOTAL AND FOR EAC H CATEGORY LISTED IN § 8.3–302 OF THIS TITLE; 6
(IV) THE NUMBER OF CLAIMS INCLUDED UNDER ITEM (III) OF 7
THIS ITEM BROKEN DOW N BY: 8
1. JURISDICTION; 9
2. RACE AND ETHNICITY ; 10
3. GENDER; 11
4. ZIP CODE; AND 12
5. AGE; 13
(V) THE TOTAL NUMBER OF CLAIMS FOR BENEFITS DENIED, 14
BOTH IN TOTAL AND BY CATEGORY LISTED IN § 8.3–602 OF THIS TITLE; AND 15
(VI) THE NUMBER OF CLAIMS INCLUDED UNDER ITEM (V) OF 16
THIS ITEM BROKEN DOW N BY: 17
1. JURISDICTION; 18
2. RACE AND ETHNICITY ; 19
3. GENDER; 20
4. ZIP CODE; AND 21
5. AGE; 22
(2) PROJECTED PARTICIPAT ION RATES; 23
10 SENATE BILL 828
(3) contribution rates; 1
[(3)] (4) projected and actual Fund balances; 2
[(4)] (5) public outreach and technical assistance efforts; 3
[(5)] (6) all enforcement efforts; 4
[(6)] (7) the number and status of complaints under Subtitle 9 of this 5
title; 6
[(7)] (8) the costs of administering the Program attributable to each of 7
the following: 8
(i) employers; 9
(ii) employees of employers; 10
(iii) self–employed individuals; and 11
(iv) the State; 12
[(8)] (9) the State agencies and relevant stakeholders that were consulted 13
as required under this title; and 14
[(9)] (10) the capability and capacity of the Department to administer the 15
Program as compared to the findings and recommendations of the capability and capacity 16
study completed under § 5 of Chapter 48 of the Acts of the General Assembly of 2022. 17
(C) THE REPORT ING REQUIREMENT ESTABLISHED U NDER SUBSECTION (A) 18
OF THIS SECTION DOES NO T APPLY TO A N EMPLOYER THAT HAS A PRIVATE 19
EMPLOYER PLAN DESCRIBED IN § 8.3–705 OF THIS TITLE. 20
8.3–504. 21
(d) In accordance with regulations that the Secretary adopts, money in the Fund 22
account: 23
(1) shall be used to pay benefits under this title; and 24
(2) may be used to pay for: 25
(i) the public education program CARRIED OUT UNDER § 26
8.3–403(A)(4) OF THIS TITLE; and 27
SENATE BILL 828 11
(ii) any costs associated with the initial implementation and ongoing 1
administration of this title. 2
8.3–505. 3
A check that [the State Treasurer issues] IS ISSUED to pay benefits or refunds shall: 4
(1) [be issued only on a warrant signed by] BEAR THE SIGNATURE O F the 5
Secretary; 6
(2) bear the signature of the State Treasurer; and 7
(3) be countersigned by an authorized agent. 8
8.3–601. 9
(a) Beginning [October 1, 2023] JANUARY 1, 2024, each employee of an 10
employer, each employer with 15 or more employees, and each self–employed individual 11
participating in the Program shall contribute to the Fund. 12
(b) (1) ON OR BEFORE SEPTEMBER 1, 2023, THE SECRETARY SHALL SET 13
THE TOTAL RATE OF CO NTRIBUTION BASED ON AVAILABLE COST ANALY SES OF THE 14
PROGRAM. 15
(2) THE RATE SET UNDER PA RAGRAPH (1) OF THIS SUBSECTION 16
SHALL BE IN EFFECT F OR THE PERIOD FROM JANUARY 1, 2024, TO JUNE 30, 2025, 17
BOTH INCLUSIVE . 18
(C) (1) On or before [December 1 every 2 years] NOVEMBER 15 EACH YEAR, 19
beginning in [2025] 2024, the Secretary[, in consultation with State agencies and relevant 20
stakeholders,] shall conduct a cost analysis of the Program that is focused on the cost of 21
maintaining solvency and paying benefits to covered individuals THAT WILL BE USED TO 22
DETERMINE THE APPROPRIATE TOTA L RATE OF CONTRIBUTI ON TO THE FUND. 23
[(c) (1) Once every 2 years, beginning in 2025, the Secretary, in consultation 24
with State agencies and relevant stakeholders, shall study and make recommendations 25
regarding the following: 26
(i) the appropriate total rate of contribution; 27
(ii) the appropriate cost–sharing formula between employers and 28
employees for making contributions to fund the Program, including various formulas that 29
range between a cost share of: 30
1. A. 75% paid by employers; and 31
12 SENATE BILL 828
B. 25% paid by employees; and 1
2. A. 25% paid by employers; and 2
B. 75% paid by employees; 3
(iii) the cost efficiency and benefits of the Department issuing a 4
request for proposals seeking the services of an outside contractor for the following: 5
1. premium collection; 6
2. claims administration; 7
3. data management; 8
4. fraud control; 9
5. marketing and advertising; or 10
6. implementing any other elements of the Program.] 11
(2) On or before [April 1] NOVEMBER 15 each year [a study is conducted 12
under paragraph (1) of this subsection], the Secretary shall report the [findings and 13
recommendations] RESULTS OF THE COST ANALYSIS to the Senate Finance Committee, 14
the House Economic Matters Committee, and the Joint Committee on Administrative, 15
Executive, and Legislative Review in accordance with § 2–1257 of the State Government 16
Article. 17
(d) (1) Subject to paragraph (2) of this subsection, on or before [June 1 every 2 18
years,] FEBRUARY 1 EACH YEAR, beginning in 2025, the Secretary shall set the total rate 19
of contribution [and the percentage of the total rate of contribution to be paid by employees 20
of employers and employers with 15 or more employees] that will be in effect for the 21
[24–month] 12–MONTH period beginning on the immediately following [January] JULY 1. 22
(2) The rate [and percentages] set under paragraph (1) of this subsection 23
shall be based on the study required under subsection (c) of this section. 24
[(3)] (E) The total rate of contribution shall be applied to all wages up to 25
and including the Social Security wage base. 26
[(4) The percentages set under paragraph (1) of this subsection may not 27
vary between employees or employers.] 28
[(e)] (F) (1) (I) EXCEPT AS OTHERWISE P ROVIDED IN THIS SECT ION, 29
EACH EMPLOYER OF 15 OR MORE EMPLOYEES SH ALL CONTRIBUTE AN AM OUNT 30 SENATE BILL 828 13
EQUAL TO 25% OF THE TOTAL RATE OF CONTRIBUTION FOR EAC H COVERED 1
EMPLOYEE. 2
(II) EXCEPT AS OTHERWISE P ROVIDED IN THIS SECT ION, EACH 3
EMPLOYEE OF AN EMPLO YER SHALL CONTRIBUTE AN AMOUNT EQUAL TO 75% OF 4
THE TOTAL RATE OF CO NTRIBUTION. 5
[(1)] (2) (I) Except as provided in [paragraph (2) of this subsection] 6
SUBPARAGRAPH (II) OF THIS PARAGRAPH , the employer of the employee shall deduct 7
the employee’s required contribution from the wages of the employee. 8
(II) 1. AN EMPLOYER MAY ELECT TO PAY ALL OR A PORTION 9
OF THE REQUIRED EMPL OYEE CONTRIBUTIONS IN WHOLE OR IN PART . 10
[(2)] 2. If the employer of an employee elects to pay a portion of 11
the employee’s required contribution, the employer: 12
A. may deduct an amount that is less than 75% of the rate of 13
contribution required from the wages of the employee; AND 14
B. SHALL NOTIFY EMPLOYE ES OF THE RATE OF 15
CONTRIBUTION SET FOR EMPLOYEES UNDER SUBS ECTION (D)(1) OF THIS SECTION 16
AND THE PORTION OF T HAT AMOUNT THAT THE EMPLOYER IS ELECTING TO PAY. 17
[(f)] (G) Each self–employed individual participating in the Program shall: 18
(1) pay contributions during each year that the self–employed individual 19
participates in the Program; and 20
(2) contribute an amount equal to the total rate of contribution set under 21
subsection (d) of this section. 22
(H) THE STATE SHALL PAY THE C ONTRIBUTION REQUIRED UNDER 23
SUBSECTION (F) OF THIS SECTION FOR: 24
(1) EMPLOYERS THAT ARE C OMMUNITY PROVIDERS T HAT ARE 25
COMMUNITY –BASED AGENCIES OR PROGRAMS FUNDED BY THE BEHAVIORAL 26
HEALTH ADMINISTRATION , THE DEVELOPMENTAL DISABILITIES 27
ADMINISTRATION , OR THE MEDICAL CARE PROGRAMS ADMINISTRATION THAT 28
SERVE INDIVIDUALS WI TH MENTAL DISORDERS , SUBSTANCE USE DISORDERS, OR A 29
COMBINATION OF THOSE DISORDERS OR DEVELOP MENTAL DISABILITIES ; AND 30
14 SENATE BILL 828
(2) COVERED EMPLOYEES WH O MAKE AN HOURLY WAG E THAT IS LESS 1
THAN $15 PER HOUR, UNLESS THE EMPLOYER OF THE COVERED EMPLO YEE ELECTS 2
TO PAY ALL OF A PORT ION OF THE EMPLOYEE ’S REQUIRED CONTRIBUT ION. 3
8.3–701. 4
(a) (1) Subject to paragraph (2) of this subsection, beginning January 1, 2025, 5
a covered individual taking leave from employment may submit a claim for benefits [to]: 6
(i) 1. TO care for a newborn child OF THE COVERED 7
INDIVIDUAL DURING THE FIRST YEA R AFTER THE CHILD’S BIRTH; or 8
2. BECAUSE a child [newly] IS BEING placed for adoption, 9
foster care, or kinship care with the covered individual [during the first year after the birth, 10
adoption,] or TO CARE FOR OR BOND WITH THE CHILD DURIN G THE FIRST YEAR AFT ER 11
THE placement; 12
(ii) TO care for a family member with a serious health condition; 13
(iii) TO attend to a serious health condition that [results in] 14
PREVENTS the covered individual FROM being [unable] ABLE to perform [the] ONE OR 15
MORE functions of the covered individual’s position; 16
(iv) TO care for a service member with a serious health condition 17
resulting from military service who is the covered individual’s next of kin; or 18
(v) TO attend to a qualifying exigency arising out of the deployment 19
of a service member who is a family member of the covered individual. 20
(2) (i) Except as provided under subparagraph (ii) of this paragraph, if 21
the need to use leave is foreseeable, an employer may require a covered employee taking 22
leave under this title to provide the employer with written notice of the covered employee’s 23
intention to take leave at least 30 days before commencing the leave. 24
(ii) If the need to use leave is not foreseeable, the covered employee 25
shall: 26
1. provide notice to the employer as soon as practicable; and 27
2. generally comply with the employer’s notice or procedural 28
requirements for requesting or reporting other leave, if those requirements do not interfere 29
with the covered employee’s ability to use leave for which benefits may be paid under this 30
title. 31
SENATE BILL 828 15
(B) (1) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , AN 1
INDIVIDUAL MAY FILE AN APPLICATION FOR B ENEFITS WITHIN 60 DAYS BEFORE THE 2
ANTICIPATED STA RT DATE OF THE LEAVE FOR WHICH BENEFITS MAY BE PAID 3
UNDER THIS TITLE , BUT NOT LATER THAN 60 DAYS AFTER THE START DATE OF THE 4
LEAVE. 5
(2) TO BE CONSIDERED COMP LETE, AN APPLICATION SHALL CONTAIN 6
ALL INFORMATION REQU IRED BY THE DEPARTMENT . 7
(3) (I) THE DEPARTMENT SHALL WAIVE T HE FILING DEADLINE 8
ESTABLISHED UNDER PA RAGRAPH (1) OF THIS SUBSECTION F OR GOOD CAUSE. 9
(II) IF THE COVERED INDIVI DUAL DOES NOT HAVE G OOD CAUSE 10
FOR THE DELAY IN COMPLETING THE CLAIM APPLICATION, THE SECRETARY MAY 11
DELAY OR DENY BENEFI TS UNDER THIS TITLE . 12
[(b)] (C) (1) Subject to paragraphs (2) and (3) of this subsection, a covered 13
individual may take the leave for which the individual is eligible for benefits under 14
subsection (a) of this section on an intermittent leave schedule. 15
(2) If leave is taken on an intermittent leave schedule, the covered 16
individual shall: 17
(i) make a reasonable effort to schedule the intermittent leave in a 18
manner that does not unduly disrupt the operations of the employer; and 19
(ii) provide the employer with reasonable and practicable prior 20
notice of the reason for which the intermittent leave is necessary. 21
(3) A covered employee may not take intermittent leave in an increment of 22
less than 4 hours. 23
(4) If leave is taken on an intermittent leave schedule, an employer may 24
not reduce the total amount of leave to which the covered individual is entitled beyond the 25
amount of leave actually taken. 26
8.3–702. 27
(a) (1) Except as provided in paragraph (2) of this subsection, a covered 28
individual may not receive more than 12 weeks of benefits in an application year. 29
(2) A covered individual may receive an additional 12 weeks of benefits if 30
the covered individual during the same application year: 31
(i) 1. Received benefits because the covered individual was 32
eligible for benefits under § 8.3–701(a)(1)(i) of this subtitle; and 33 16 SENATE BILL 828
2. becomes eligible for benefits under § 8.3–701(a)(1)(iii) of 1
this subtitle; or 2
(ii) 1. Received benefits because the covered individual was 3
eligible for benefits under § 8.3–701(a)(1)(iii) of this subtitle; and 4
2. becomes eligible for benefits under § 8.3–701(a)(1)(i) of 5
this subtitle. 6
[(b) If a covered individual takes leave for which the covered individual is receiving 7
benefits under this title, the leave shall run concurrently with eligible leave that may be 8
taken by the covered individual under the federal Family and Medical Leave Act.] 9
(B) THE DEPARTMENT MAY COUNT THE LEAVE AGAINST A COVERED 10
INDIVIDUAL, IF: 11
(1) AN EMPLOYER DESIGNAT ES A PERIOD OF LEAVE AS COVERED BY 12
THE FEDERAL FAMILY AND MEDICAL LEAVE ACT FOR A COVERED IND IVIDUAL WHO 13
WOULD ALSO QUALIFY F OR BENEFITS UNDER § 8.3–302 OF THIS TITLE; 14
(2) THE EMPLOYER IN FORMS THE COVERED IN DIVIDUAL OF THE 15
INDIVIDUAL’S ELIGIBILITY FOR BENE FITS UNDER THIS TITL E; AND 16
(3) THE EMPLOYEE DECLINE S TO APPLY FOR BENEF ITS UNDER THIS 17
TITLE. 18
(c) (1) A covered individual [shall exhaust all employer–provided leave that is 19
not required to be provided under law before receiving benefits under this title] MAY NOT 20
BE REQUIRED TO USE O R EXHAUST PAID VACATION , PAID SICK LEAVE , OR OTHER 21
PAID TIME OFF UNDER AN EMPLOYER POLICY BEFORE, OR WHILE, RECEIVING 22
BENEFITS UNDER THIS TITLE. 23
[(2) For the purposes of §§ 8.3–706 and 8.3–707 of this subtitle and §§ 24
8.3–904 and 8.3–905 of this title, employer–provided leave that is being exhausted as 25
required under paragraph (1) of this subsection shall be treated the same as leave from 26
work for which benefits may be paid under this title.] 27
(2) A COVERED INDIVIDUAL A ND AN EMPLOYER MAY A GREE TO USE 28
PAID VACATION , PAID SICK LEAVE , OR OTHER PAID TIME O FF WHILE RECEIVING 29
BENEFITS AVAILABLE U NDER THIS TITLE TO REPLACE THE COVER ED INDIVIDUAL’S 30
WAGES UP TO 100% OF THE COVERED INDIV IDUAL’S AVERAGE WEEKLY WAGE 31
DURING THE PERIOD OF LEAVE FOR WHICH BENEFITS ARE RECEIVED UNDER THIS 32
TITLE. 33
SENATE BILL 828 17
(3) NOTWITHSTANDING PARAG RAPH (1) OF THIS SUBSECTION , AN 1
EMPLOYER MAY REQUIRE THAT BENEFIT PAYMENT S UNDER THIS TITLE B E MADE 2
CONCURRENTLY , OR OTHERWISE COORDIN ATED WITH P AYMENTS MADE OR LEAV E 3
THAT IS ALLOWED UNDER THE TE RMS OF A SEPARATE EMPLOYER–PROVIDED LEAVE 4
POLICY DUE TO PARENTAL CARE , FAMILY CARE, OR MILITARY LEAVE OR UN DER A 5
DISABILITY POLICY . 6
[(3)] (4) This subsection may not be construed to reduce any weeks of 7
leave for which benefits may be paid under this title. 8
(d) (1) Except as provided in paragraph (2) of this subsection, an individual 9
receiving benefits under Title 8 of this article or wage replacement benefits under Title 9 10
of this article is not eligible to receive benefits under this title. 11
(2) An individual receiving compensation for a permanent partial disability 12
under Title 9 of this article may be eligible for benefits under this title. 13
8.3–703. 14
(a) For the purposes of this section: 15
(1) the covered individual’s average weekly wage shall be calculated as the 16
total wages received by the covered individual over the last 680 hours for which the covered 17
individual was paid divided by the number of weeks worked; and 18
(2) the State average weekly wage shall be the wage calculated under § 19
9–603 of this article. 20
(b) (1) Subject to [paragraph] PARAGRAPHS (2) AND (3) of this subsection, 21
the weekly benefit amount payable to a covered individual under this title shall be: 22
(i) if the covered individual’s average weekly wage is 65% or less of 23
the State average weekly wage, 90% of the covered individual’s average weekly wage; OR 24
(ii) if the covered individual’s average weekly wage is greater than 25
65% of the State average weekly wage, the sum of: 26
1. 90% of the covered individual’s average weekly wage up to 27
65% of the State average weekly wage; and 28
2. 50% of the covered individual’s average weekly wage that 29
is greater than 65% of the State average weekly wage[; or 30
(iii) if the covered individual is taking partially paid leave, the lesser 31
of: 32
18 SENATE BILL 828
1. the amount required to make up the difference between 1
the wages paid to the covered individual while the covered individual is taking partially 2
paid leave and the full wages normally paid to the covered individual; and 3
2. if the covered individual’s average weekly wage is greater 4
than 65% of the State average weekly wage, the sum of: 5
A. 90% of the covered individual’s average weekly wage up to 6
65% of the State average weekly wage; and 7
B. 50% of the covered individual’s average weekly wage that 8
is greater than 65% of the State average weekly wage]. 9
(2) THE BENEFIT PAID UNDE R THIS TITLE AND ANY ADDITIONAL PAID 10
LEAVE CANNOT TOTAL MORE THAN 100% OF THE COVERED INDIV IDUAL’S AVERAGE 11
WEEKLY WAGE . 12
(3) The weekly benefit amount payable under paragraph (1) of this 13
subsection: 14
(i) shall be at least $50; and 15
(ii) may not exceed: 16
1. for the 12–month period beginning January 1, 2025, 17
$1,000; and 18
2. for the 12–month period beginning January 1, 2026, and 19
each subsequent 12–month period, the amount determined and announced by the Secretary 20
under paragraph [(3)] (4) of this subsection. 21
[(3)] (4) (i) In this paragraph, “Consumer Price Index” means the 22
Consumer Price Index for All Urban Consumers for the 23
Washington–Arlington–Alexandria, DC–VA–MD–WV metropolitan area or a successor 24
index published by the federal Bureau of Labor Statistics. 25
(ii) Subject to subsection (e) of this section, for the 12–month period 26
beginning January 1, 2026, and each subsequent 12–month period, the maximum weekly 27
benefit amount shall be increased by the amount, rounded to the nearest cent, that equals 28
the product of: 29
1. the maximum weekly benefit amount in effect for the 30
immediately preceding 12–month period; and 31
SENATE BILL 828 19
2. the annual percentage growth in the Consumer Price 1
Index for the immediately preceding 12–month period, as determined by the Secretary 2
under subparagraph (iii)1 of this paragraph. 3
(iii) Beginning September 1, 2025, and on each subsequent 4
September 1, the Secretary shall determine and announce: 5
1. the annual percentage growth, if any, in the Consumer 6
Price Index based on the most recent 12–month period for which data are available on 7
September 1; and 8
2. the maximum weekly benefit amount effective for the 9
12–month period beginning the immediately following January 1. 10
(c) (1) [An] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 11
SUBSECTION, AN increase in the weekly benefit amount under subsection [(b)(3)](B)(4) of 12
this section applies only to a claim for benefits [filed] THAT BEGINS after the date the 13
increase becomes effective. 14
(2) IF THE LEAVE FOR WHIC H BENEFITS ARE BEING PAID IS BEING 15
TAKEN INTERMITTENTLY , AN INCREASE IN THE W EEKLY BENEFIT AMOUNT SHALL 16
APPLY TO A CLAIM FOR BENEFITS AS SPECIFIE D IN REGULATIONS ADO PTED BY THE 17
DEPARTMENT . 18
(d) The Department shall: 19
(1) notify the employer of a covered individual within [5] 3 business days 20
after the covered individual files a [claim] COMPLETED APPLICATIO N for benefits under 21
this title; 22
(2) NOTIFY THE COVERED I NDIVIDUAL WITHIN 3 BUSINESS DAYS 23
AFTER THE INDIVIDUAL FILES AN APPLICATION , IF THE APPLICATION I S 24
CONSIDERED TO BE INCOMPLETE UNDER § 8.3–701(B)(2) OF THIS SUBTITLE DUE TO 25
MISSING INFORMATION THAT IS NECESSARY TO COMPLETE THE CLAIM ; 26
(3) approve or deny the claim and notify the covered individual and the 27
covered individual’s employer within 10 business days after the covered individual files the 28
[claim] COMPLETED APPLICATIO N; 29
[(3)] (4) make the first payment of benefits to a covered individual within 30
5 business days after the [claim] COMPLETED APPLICATIO N is approved OR THE LEAVE 31
HAS STARTED, WHICHEVER IS LATER ; and 32
[(4)] (5) make subsequent payments every 2 weeks until the benefit 33
period ends. 34 20 SENATE BILL 828
(e) (1) In this subsection, “Board” means the Board of Public Works. 1
(2) Subject to paragraph (4) of this subsection, on or before September 1 2
each year, beginning in 2025, the Board shall determine whether the seasonally adjusted 3
total employment from the Current Employment Statistics series as reported by the U.S. 4
Bureau of Labor Statistics for the most recent 6–month period is negative as compared with 5
the immediately preceding 6–month period. 6
(3) (i) Subject to paragraph (4) of this subsection, the Board may 7
temporarily suspend an increase in the maximum weekly benefit specified under subsection 8
[(b)(2)(ii)] (B)(3)(II) of this section if the Board determined under paragraph (2) of this 9
subsection that the seasonally adjusted total employment is negative. 10
(ii) If the seasonally adjusted total employment is negative, the 11
Board may consider the performance of State revenues in the immediately preceding 6 12
months, as reported by the Office of the Comptroller, in determining whether to temporarily 13
suspend an increase to the maximum weekly benefit specified under subsection [(b)(2)(ii)] 14
(B)(3)(II) of this section. 15
(4) If the Board temporarily suspends an increase to the maximum weekly 16
benefit specified under subsection [(b)(2)(ii)2] (B)(3)(II)2 of this section: 17
(i) the maximum weekly benefit in effect for the period beginning 18
the following January 1 shall remain the same as the rate that was in effect for the 19
immediately preceding 12–month period; and 20
(ii) the Board shall notify the Secretary that the maximum weekly 21
benefit increase for the period beginning the following January 1 is suspended for 1 year. 22
(f) The Department shall notify each employer of the increase to the maximum 23
weekly benefit specified under subsection [(b)(2)(ii)] (B)(3)(II) of this section. 24
8.3–705. 25
(a) (1) An employer may satisfy the requirements of this title through a 26
private employer plan consisting of employer–provided benefits, insurance, or a 27
combination of both if the private employer plan is offered to all of the employer’s eligible 28
employees and meets or exceeds the rights, protections, and benefits provided to a covered 29
employee under this title. 30
(2) (I) TO DETERMINE THE BENE FIT AMOUNT UNDER A P RIVATE 31
EMPLOYER PLAN, THE WEEKLY BENEFIT A MOUNT SHALL BE BASED ON THE 32
AVERAGE WEEKLY WAGE EARNED FROM THE EMPL OYER SPONSORING THE PRIVATE 33
EMPLOYER PLAN . 34
SENATE BILL 828 21
(II) NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS 1
PARAGRAPH , IF AN INDIVIDUAL HAS WORKE D LESS THAN 680 HOURS FOR THE 2
EMPLOYER SPONSORING THE PRIVATE EMPLOYER PLAN, THE WEEKLY BENEFIT 3
AMOUNT SHALL BE BASE D ON THE AVERAGE WEE KLY WAGE UNDER § 8.3–703(A) OF 4
THIS SUBTITLE. 5
(III) THIS SUBSECTION MAY NOT BE CONSTRUED TO PREV ENT A 6
PRIVATE EMPLOYER PLA N FROM PROVIDING A B ENEFIT THAT IS GREATER THAN 7
THAT PROVIDED IN § 8.3–703(A) OF THIS SUBTITLE. 8
(b) A private employer plan shall be filed with the Department for approval. 9
(c) An employer that provides covered employees with a private employer plan 10
and an employee that is covered by a private employer plan are exempt from the 11
contributions required under Subtitle 6 of this title. 12
(D) AN EMPLOYER THAT PROV IDES A PRIVATE EMPLO YER PLAN MAY NOT 13
DEDUCT FROM A N EMPLOYEE MORE THA N THE MAXIMUM CONTRIBU TION AMOUNT 14
SET BY THE DEPARTMENT . 15
8.3–801. 16
(a) An employer shall provide written notice to each employee of the rights and 17
duties of an employee under this title at the time of hire and annually thereafter. 18
(b) (1) When an employee requests leave under this title, or when an employer 19
knows that an employee’s leave may be for a reason under § 8.3–302 of this title, the 20
employer shall notify the employee of the employee’s eligibility to take leave for which 21
benefits may be paid under this title within 5 business days. 22
(2) The notice provided under paragraph (1) of this subsection shall 23
include: 24
(i) the right of [an eligible] A COVERED employee to receive 25
Program benefits under this title; 26
(ii) the procedure for filing a claim for benefits; 27
(iii) [an eligible] A COVERED employee’s responsibilities with 28
respect to providing notification prior to the commencement of leave and any penalties for 29
failing to do so; 30
(iv) the right of an employee to file a complaint for alleged violations 31
of this title; 32
22 SENATE BILL 828
(v) the right of [an eligible] A COVERED employee to job protection; 1
and 2
(vi) a description of the prohibited acts, penalties, and complaint 3
procedures under Subtitle 9 of this title. 4
(c) (1) The Department shall develop standard notices for an employer to use 5
under this subtitle. 6
(2) The notices required under this subtitle shall be provided in accordance 7
with regulations adopted by the Secretary. 8
8.3–906. 9
(a) (1) (I) The Secretary shall establish a system for appeals by covered 10
individuals [in the case of denial] REGARDING DETERMINATION S OF BENEFIT 11
AMOUNTS, BENEFIT DURATIONS , AND DENIALS of benefits under this title. 12
(II) A COVERED INDIVIDUAL M UST FILE AN APPEAL UNDER 13
SUBPARAGRAPH (I) OF THIS PARAGRAPH WI THIN 30 DAYS AFTER THE 14
DETERMINATION IS MADE OR BENEFITS ARE DENIED , UNLESS GOOD CAUSE CA N BE 15
SHOWN FOR THE DELAY . 16
(2) The Secretary may use the procedures under § 8–806 of this article for 17
the system required under paragraph (1) of this subsection. 18
(b) Judicial review of any decision with respect to benefits under this title shall 19
be allowed in a court of competent jurisdiction after an aggrieved party has exhausted all 20
administrative remedies established by the Secretary under this title. 21
(c) The Secretary shall implement procedures to ensure confidentiality of all 22
information related to any claims filed or appeals taken to the maximum extent allowed by 23
law. 24
Chapter 48 of the Acts of 2022 25
[SECTION 3. AND BE IT FURTHER ENACTED, That: 26
(a) On or before June 1, 2023, the Secretary of Labor shall set the total rate of 27
contribution and percentage of the total rate of contribution to be paid by employees of 28
employers and employers with 15 or more employees under § 8–601(a) of the Labor and 29
Employment Article, as enacted by Section 1 of this Act, effective October 1, 2023. 30
(b) The rate and percentages set under subsection (a) of this section shall be: 31
(1) based on the study required under Section 11(2) of this Act; and 32 SENATE BILL 828 23
(2) in effect from October 1, 2023, through December 31, 2025, both 1
inclusive.] 2
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 3
as follows: 4
Article – Labor and Employment 5
8.3–601. 6
(h) The State shall pay the contribution required under subsection (f) of this 7
section for[: 8
(1)] employers that are community providers that are community–based 9
agencies or programs funded by the Behavioral Health Administration, the Developmental 10
Disabilities Administration, or the Medical Care Programs Administration that serve 11
individuals with mental disorders, substance use disorders, or a combination of those 12
disorders or developmental disabilities[; and 13
(2) covered employees who make an hourly wage that is less than $15 per 14
hour, unless the employer of the covered employee elects to pay all or a portion of the 15
employee’s required contribution]. 16
SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 17
effect July 1, 2026. 18
SECTION 4 AND BE IT FURTHER ENACTED, That , except as provided in Section 19
3 of this Act, this Act shall take effect June 1, 2023. 20