WES MOORE, Governor Ch. 259
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Chapter 259
(Senate Bill 828)
AN ACT concerning
Family and Medical Leave Insurance Program – Modifications
FOR the purpose of modifying the Family and Medical Leave Insurance Program by
clarifying and altering certain provisions relating to the administration of the
Program, including provisions related to the provision of benefits, the payment of
contributions, and appeals; establishing the employer and employee shares of the
total rate of contribution; prohibiting the total rate of contribution from exceeding a
certain percentage of an employee’s wage; requiring the State to pay for certain
contributions for certain employers and certain covered employees; requiring the
Maryland Department of Health to reimburse certain community providers for
certain employer contributions in a certain manner; repealing the requirement that
a covered individual exhaust all employer–provided leave that is not required to be
provided under law before receiving benefits under the Program; prohibiting a
covered individual from being required to use certain leave before, or while, receiving
benefits under the Program; authorizing a covered individual and an employer to
agree to use certain leave to replace certain wages during the period of leave for
which benefits are received under the Program; and generally relating to the Family
Medical Leave Insurance Program.
BY repealing and reenacting, with amendments,
Article – Labor and Employment
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
through 8.3–703, 8.3–705, 8.3–801, and 8.3–906
Annotated Code of Maryland
(2016 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, without amendments,
Article – Labor and Employment
Section 8.3–301
Annotated Code of Maryland
(2016 Replacement Volume and 2022 Supplement)
BY repealing
Chapter 48 of the Acts of the General Assembly of 2022
Section 3 and 10
BY repealing and reenacting, with amendments,
Article – Labor and Employment
Section 8.3–601(h)
Annotated Code of Maryland
(2016 Replacement Volume and 2022 Supplement) Ch. 259 2023 LAWS OF MARYLAND
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(As enacted by Section 1 of this Act)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Labor and Employment
8.3–101.
(a) In this title the following words have the meanings indicated.
(b) “Application year” means the 12–month period beginning on the [first day]
SUNDAY of the calendar week [in] FOR which [a covered individual files an application
for] benefits ARE APPROVED .
(c) “Benefits” means the money payable under this title to a covered individual.
(d) “Covered employee” means an employee who has worked at least 680 hours
over the 12–month period immediately preceding the date on which leave is to begin.
(e) “Covered individual” means a covered employee or a self–employed individual
who elects to participate in the Program under § 8.3–201 of this title.
(f) “Department” means the Maryland Department of Labor.
(g) “Deployment” means a service member acting under official orders who, on
any day, is performing service in a training exercise or operation at a location or under
circumstances that make it impossible or infeasible for the service member to spend
off–duty time in the housing in which the service member resides when on garrison duty
at the service member’s permanent duty station or homeport.
(h) (1) “Employer” means a person or governmental entity that employs at
least one individual in the State.
(2) “Employer” does not include an individual who:
(i) is the sole owner of a sole proprietorship, limited liability
company, C corporation, or S corporation; and
(ii) is the only individual employed by the sole proprietorship,
limited liability company, C corporation, or S corporation.
(i) “Family member” means:
(1) a biological child, an adopted child, a foster child, or a stepchild of the
covered individual; WES MOORE, Governor Ch. 259
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(2) a child for whom the covered individual has legal or physical custody or
guardianship;
(3) a child for whom the covered individual stands in loco parentis,
regardless of the child’s age;
(4) a biological parent, an adoptive parent, a foster parent, or a stepparent
of the covered individual or of the covered individual’s spouse;
(5) the legal guardian of the covered individual or the ward of the covered
individual or of the covered individual’s spouse;
(6) an individual who acted as a parent or stood in loco parentis to the
covered individual or the covered individual’s spouse when the covered individual or the
covered individual’s spouse was a minor;
(7) the spouse of the covered individual;
(8) A DOMESTIC PARTNER O F THE COVERED INDIVI DUAL;
(9) a biological grandparent, an adopted grandparent, a foster
grandparent, or a stepgrandparent of the covered individual;
[(9)] (10) a biological grandchild, an adopted grandchild, a foster
grandchild, or a stepgrandchild of the covered individual; or
[(10)] (11) a biological sibling, an adopted sibling, a foster sibling, or a
stepsibling of the covered individual.
(j) “Fund” means the Family and Medical Leave Insurance Fund established
under § 8.3–501 of this title.
(k) “Governmental entity” has the meaning stated in § 8–101 of this article.
(l) “Program” means the Family and Medical Leave Insurance Program
established under § 8.3–301 of this title.
(m) “Qualifying exigency” means any of the following reasons for which leave may
be needed by a family member of a service member:
(1) because the service member has received notice of deployment within 7
days before the deployment is to begin;
(2) to attend military events and related activities including family support
programs related to the active duty of the service member; Ch. 259 2023 LAWS OF MARYLAND
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(3) to arrange, provide, or attend child care or school activities only when
the service member is on active duty call or active duty status;
(4) to make financial and legal arrangements for the service member’s
absence or because of the absence;
(5) to attend counseling that:
(i) is needed due to the active duty or call to active duty status of
the service member; and
(ii) is provided by an individual who is not a licensed health care
provider;
(6) to spend up to 15 calendar days with a service member who is on
short–term temporary rest and recuperation leave during the period of deployment;
(7) to attend postdeployment activities including reintegration services for
a period of 90 days immediately following the termination of active status;
(8) to attend to matters related to the death of the service member while
on active duty status;
(9) to arrange for or provide alternative care for a parent of the service
member when the parent is incapable of self–care and the covered active duty or call to
active duty necessitates a change; or
(10) because of any other issues that arise out of active duty or a call to
active duty that an employer and covered employee agree should be covered.
(n) “Secretary” means the Secretary of Labor.
(o) (1) “Serious health condition” means an illness, an injury, an impairment,
or a physical or mental condition that involves:
(i) inpatient care in a hospital, hospice, or residential health care
facility;
(ii) continued treatment by a licensed health care provider; or
(iii) continued treatment or supervision at home by a licensed health
care provider or other competent individual under the supervision of a licensed health care
provider.
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(2) “Serious health condition” includes an illness, an injury, an
impairment, or a physical or mental condition described in paragraph (1) of this subsection
that continues over an extended period of time and requires intermittent treatment.
(p) “Service member” means an individual who is an active duty or former
member of:
(1) the United States armed forces;
(2) a reserve component of the United States armed forces; or
(3) the National Guard of any state.
(q) “Treatment” includes:
(1) examinations or testing to determine the extent to which a serious
health condition exists or persists;
(2) ongoing or periodic evaluations of the serious health condition; and
(3) actual treatment by a health care provider.
(R) “WAGES” HAS THE MEANING STAT ED IN:
(1) FOR A COVERED EMPLOY EE, § 3–501(C) OF THIS ARTICLE; AND
(2) FOR A SELF–EMPLOYED INDIVIDUAL , 26 U.S.C. § 1402(B) MEANS
ALL COMPENSATION THA T IS DUE FOR EMPLOYMENT THAT IS :
(1) FOR AN EMPLOYEE :
(I) AN HOURLY WAGE OR A SALARY;
(II) A COMMISSION ;
(III) COMPENSATORY PAY ;
(IV) SEVERANCE PAY ;
(V) STANDBY PAY;
(VI) A TIP OR GRATUITY ;
(VII) HOLIDAY OR VACATION PAY; OR
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(VIII) ANY OTHER PAID LEAVE , INCLUDING SICK LEAVE , THAT IS
PAID TO THE EMPLOYEE ENTIRELY BY THE EMPL OYER; OR
(2) FOR A SELF –EMPLOYED INDIVIDUAL , SELF–EMPLOYMENT
INCOME, AS DEFINED IN 26 U.S.C. § 1402(B).
8.3–301.
There is a Family and Medical Leave Insurance Program in the Department.
8.3–302.
The purpose of the Program is to provide temporary benefits to a covered individual
who is taking leave from employment:
(1) (I) to care for OR BOND WITH a child OF THE COVERED
INDIVIDUAL during the first year after the child’s birth; or [after the placement of the]
(II) DURING THE PROCESS T HROUGH WHICH A child IS BEING
PLACED WITH THE COVE RED INDIVIDUAL through foster care, kinship care, or adoption
AND TO CARE FOR AND BOND WITH THE CHILD DURING THE FIRST YEAR AFTER THE
PLACEMENT ;
(2) to care for a family member with a serious health condition;
(3) because the covered individual has a serious health condition that
results in the covered individual being unable to perform the functions of the covered
individual’s position;
(4) to care for a service member who is the covered individual’s next of kin;
or
(5) because the covered individual has a qualifying exigency arising out of
the deployment of a service member who is a family member of the covered individual.
8.3–403.
(a) The Secretary, in consultation with other State agencies and relevant
stakeholders, shall:
(1) subject to subsection (b) of this section, adopt regulations necessary to
carry out this title;
(2) establish procedures and forms for filing claims for benefits, including:
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(i) procedures for notifying an employer within [5 business days
after [an employee of the employer files a claim for benefits under this title] 3 BUSINESS
DAYS AFTER ANY OF THE FOLLOWING OCCURS:
1. AN EMPLOYEE FILES AN ELECTRONIC APPLICATI ON
REGARDING A CLAIM FO R BENEFITS;
2. AN EMPLOYEE ’S PAPER APPLICATION REGARDING A
CLAIM FOR BENEFITS I S PROCESSED;
3. A DETERMINATION REGA RDING A CLAIM FOR
BENEFITS IS MADE ;
4. AN APPEAL FOR A DETERMINATION REGARD ING A
CLAIM FOR BENEFITS I S FILED; OR
5. A CHANGE IS MADE TO A DETERMINATION REGA RDING
A CLAIM FOR BENEFITS ; and
(ii) notices of elections by self–employed individuals for benefits
under § 8.3–201 of this title;
(3) use information–sharing and integration technology to facilitate the
disclosure of relevant information or records needed for the administration of this title; and
(4) subject to subsection (d) of this section, carry out a public education
program.
(b) The regulations adopted under subsection (a)(1) of this section shall be
consistent with regulations adopted to implement the federal Family and Medical Leave
Act and any relevant State laws to the extent that the adopted regulations do not conflict
with this title.
(c) (1) Subject to paragraph (2) of this subsection, a covered individual under
§ 8.3–302(2), (3), (4), or (5) of this title shall provide certification for a claim for benefits
under this title.
(2) A certification for a claim for benefits for a covered individual under §
8.3–302(2), (3), or (4) of this title shall include:
(I) FOR THE PURPOSE OF S UPPORTING THE CLAIM FOR
BENEFIT PAYMENTS , THE FIRST DATE ON WH ICH THE COVERED INDI VIDUAL TOOK
OR INTENDS TO TAKE L EAVE FROM EMPLOYMENT AND WHET HER THE LEAVE WILL
OR IS INTENDED TO BE TAKEN FOR A CONTINUO US PERIOD OF TIME OR
INTERMITTENTLY ; Ch. 259 2023 LAWS OF MARYLAND
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[(i)] (II) the date on which the serious health condition of the
family member, covered individual, or service member commenced;
[(ii)] (III) the probable duration of the serious health condition;
[(iii)] (IV) the appropriate facts related to the serious health
condition within the knowledge of the licensed health care provider;
[(iv)] (V) 1. For a claim for benefits under § 8.3–302(2) of this
title, a statement that the covered individual needs to care for a family member and an
estimate of the amount of time required to provide the care; or
2. for a claim for benefits under § 8.3–302(3) of this title, a
statement that the covered individual [is unable] HAS A SERIOUS HEALTH CONDITION
THAT PREVENTS THE CO VERED INDIVIDUAL FRO M BEING ABLE to perform [the] ONE
OR MORE functions of the covered individual’s position; and
[(v)] (VI) 1. For a certification for intermittent leave under §
8.3–302(2) or (4) of this title, a statement that the covered individual needs to care for a
family member or service member and the expected FREQUENCY AND duration of the
intermittent leave; or
2. for a certification of intermittent leave under § 8.3–302(3)
of this title, a statement that the covered individual [is unable] HAS A SERIOUS HEALTH
CONDITION THAT PREVE NTS THE COVERED INDI VIDUAL FROM BEING AB LE to
perform [the] ONE OR MORE functions of the covered individual’s position and the expected
FREQUENCY AND duration of the intermittent leave.
(3) The Secretary shall establish:
(i) standards in regulation for the certification of claims for benefits
under § 8.3–302(5) of this title;
(ii) standards for verifying the identity of a family member OR NEXT
OF KIN for a claim for benefits under § 8.3–302(2), (4), OR (5) of this title; and
(iii) procedures for an employer to provide evidence of suspected
fraud to the Secretary.
(d) (1) The Secretary may use a portion of the funds paid under § 8.3–601 of
this title or other available funding to pay for and carry out the requirements under
subsection (a)(4) of this section.
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(2) Materials used in the public education program required under
subsection (a)(4) of this section shall be made available in English and Spanish.
8.3–406.
(a) On or before September 1 each year, the Secretary shall submit to the
Governor and, in accordance with § 2–1257 of the State Government Article, the General
Assembly an annual report on the administration and operation of [this title] THE
PROGRAM during the immediately preceding fiscal year.
(b) The annual report shall include information regarding:
(1) [projected and] actual Program participation rates THAT INCLUDES :
(I) THE NUMBER OF CLAIMS FOR BENEFITS SUBMITT ED, BOTH
IN TOTAL AND FOR EAC H CATEGORY LISTED IN § 8.3–302 OF THIS TITLE;
(II) THE NUMBER OF CLAIMS INCLUDED UNDER ITEM (I) OF THIS
ITEM BROKEN DOWN BY :
1. JURISDICTION;
2. RACE AND ETHNICITY ;
3. GENDER;
4. ZIP CODE; AND
5. AGE;
(III) THE NUMBER OF CLAIMS FOR BENEFITS APPROVE D, BOTH
IN TOTAL AND FOR EAC H CATEGORY LISTED IN § 8.3–302 OF THIS TITLE;
(IV) THE NUMBER OF CLAIMS INCLUDED UNDER ITEM (III) OF
THIS ITEM BROKEN DOW N BY:
1. JURISDICTION;
2. RACE AND ETHNICITY ;
3. GENDER;
4. ZIP CODE; AND
5. AGE; Ch. 259 2023 LAWS OF MARYLAND
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(V) THE TOTAL NUMBER OF CLAIMS FOR BENEFITS DENIED,
BOTH IN TOTAL AND BY CATEGORY LISTED IN § 8.3–602 OF THIS TITLE; AND
(VI) THE NUMBER OF CLAIMS INCLUDED UNDER ITEM (V) OF
THIS ITEM BROKEN DOW N BY:
1. JURISDICTION;
2. RACE AND ETHNICITY ;
3. GENDER;
4. ZIP CODE; AND
5. AGE;
(2) PROJECTED PARTICIPAT ION RATES;
(3) contribution rates;
[(3)] (4) projected and actual Fund balances;
[(4)] (5) public outreach and technical assistance efforts;
[(5)] (6) all enforcement efforts;
[(6)] (7) the number and status of complaints under Subtitle 9 of this
title;
[(7)] (8) the costs of administering the Program attributable to each of
the following:
(i) employers;
(ii) employees of employers;
(iii) self–employed individuals; and
(iv) the State;
[(8)] (9) the State agencies and relevant stakeholders that were consulted
as required under this title; and
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[(9)] (10) the capability and capacity of the Department to administer the
Program as compared to the findings and recommendations of the capability and capacity
study completed under § 5 of Chapter 48 of the Acts of the General Assembly of 2022.
(C) THE REPORTING REQUIRE MENT ESTABLISHED UND ER SUBSECTION (A)
OF THIS SECTION DOES NOT APPLY TO AN EMPL OYER THAT HAS A PRIV ATE
EMPLOYER PLAN DESCRI BED IN § 8.3–705 OF THIS TITLE.
8.3–504.
(d) In accordance with regulations that the Secretary adopts, money in the Fund
account:
(1) shall be used to pay benefits under this title; and
(2) may be used to pay for:
(i) the public education program CARRIED OUT UNDER §
8.3–403(A)(4) OF THIS TITLE; and
(ii) any costs associated with the initial implementation and ongoing
administration of this title.
8.3–505.
A check that [the State Treasurer issues] IS ISSUED to pay benefits or refunds shall:
(1) [be issued only on a warrant signed by] BEAR THE SIGNATURE O F the
Secretary; AND
(2) bear the signature of the State Treasurer; and
(3) be countersigned by an authorized agent.
8.3–601.
(a) (1) Beginning [October 1, 2023] JANUARY OCTOBER 1, 2024, each
employee of an employer, each employer with 15 or more employees, and each
self–employed individual participating in the Program shall contribute to the Fund.
(2) THE TOTAL RATE OF CONTRI BUTION ESTABLISHED U NDER THIS
SECTION:
(I) MAY NOT EXCEED 1.2% OF AN EMPLOYEE ’S WAGES; AND
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(II) SHALL BE APPLIED TO ALL WAGES UP TO AND INCLUDING
THE SOCIAL SECURITY WAGE BASE .
(b) (1) ON SUBJECT TO SUBSECTION (A)(2) OF THIS SECTION, ON OR
BEFORE SEPTEMBER OCTOBER 1, 2023, THE SECRETARY SHALL SET T HE TOTAL
RATE OF CONTRIBUTION BASED ON AVAILABLE C OST ANALYSES OF THE PROGRAM.
(2) THE RATE SET UNDER PA RAGRAPH (1) OF THIS SUBSECTION
SHALL BE IN EFFECT F OR THE PERIOD FROM JANUARY OCTOBER 1, 2024, TO JUNE
30, 2025 2026, BOTH INCLUSIVE .
(C) (1) On or before [December 1 every 2 years] NOVEMBER 15 EACH YEAR,
beginning in [2025] 2024, the Secretary[, in consultation with State agencies and relevant
stakeholders,] shall conduct a cost analysis of the Program that is focused on the cost of
maintaining solvency and paying benefits to covered individuals THAT WILL BE USED TO
DETERMINE THE APPROP RIATE TOTAL RATE OF CONTRIBUTION TO THE FUND.
[(c) (1) Once every 2 years, beginning in 2025, the Secretary, in consultation
with State agencies and relevant stakeholders, shall study and make recommendations
regarding the following:
(i) the appropriate total rate of contribution;
(ii) the appropriate cost–sharing formula between employers and
employees for making contributions to fund the Program, including various formulas that
range between a cost share of:
1. A. 75% paid by employers; and
B. 25% paid by employees; and
2. A. 25% paid by employers; and
B. 75% paid by employees;
(iii) the cost efficiency and benefits of the Department issuing a
request for proposals seeking the services of an outside contractor for the following:
1. premium collection;
2. claims administration;
3. data management;
4. fraud control; WES MOORE, Governor Ch. 259
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5. marketing and advertising; or
6. implementing any other elements of the Program.]
(2) On or before [April 1] NOVEMBER 15 each year [a study is conducted
under paragraph (1) of this subsection], the Secretary shall report the [findings and
recommendations] RESULTS OF THE COST ANALYSIS to the Senate Finance Committee,
the House Economic Matters Committee, and the Joint Committee on Administrative,
Executive, and Legislative Review in accordance with § 2–1257 of the State Government
Article.
(d) (1) Subject to paragraph (2) of this subsection AND SUBSECTION (A)(2)
OF THIS SECTION , on or before [June 1 every 2 years,] FEBRUARY 1 EACH YEAR,
beginning in 2025 2026, the Secretary shall set the total rate of contribution [and the
percentage of the total rate of contribution to be paid by employees of employers and
employers with 15 or more employees ] that will be in effect for the
[24–month] 12–MONTH period beginning on the immediately following [January] JULY 1.
(2) The rate [and percentages] set under paragraph (1) of this subsection
shall be based on the study COST ANALYSIS required under subsection (c) of this section.
[(3)] (E) The total rate of contribution shall be applied to all wages up to
and including the Social Security wage base.
[(4) The percentages set under paragraph (1) of this subsection may not
vary between employees or employers.]
[(e)] (F) (1) (I) EXCEPT AS OTHERWISE P ROVIDED IN THIS SECTION,
EACH EMPLOYER OF 15 OR MORE EMPLOYEES SH ALL CONTRIBUTE AN AM OUNT
EQUAL TO 25% 50% OF THE TOTAL RATE OF CONTRIBUTION FOR EAC H COVERED
EMPLOYEE.
(II) EXCEPT AS OTHERWISE P ROVIDED IN THIS SECT ION, EACH
EMPLOYEE OF AN EMPLO YER SHALL CONTRIBUTE AN AMOUNT EQUAL TO 75% 50%
OF THE TOTAL RATE OF CONTRIBUTION .
[(1)] (2) (I) Except as provided in [paragraph (2) of this subsection]
SUBPARAGRAPH (II) OF THIS PARAGRAPH, the employer of the employee shall deduct
the employee’s required contribution from the wages of the employee.
(II) 1. AN EMPLOYER MAY ELECT TO PAY ALL OR A PORT ION
OF THE REQUIRED EMPL OYEE CONTRIBUTIONS I N WHOLE OR IN PART .
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[(2)] 2. If the employer of an employee elects to pay a portion of
the employee’s required contribution, the employer:
A. may deduct an amount that is less than 75% 50% of the
rate of contribution required from the wages of the employee; AND
B. SHALL NOTIFY EMPLOYEES OF THE RAT E OF
CONTRIBUTION SET FOR EMPLOYEES UNDER SUBS ECTION (D)(1) OF THIS SECTION
AND THE PORTION OF T HAT AMOUNT THAT THE EMPLOYER IS ELECTING TO PAY.
[(f)] (G) Each self–employed individual participating in the Program shall:
(1) pay contributions during each year that the self–employed individual
participates in the Program; and
(2) contribute an amount equal to the total rate of contribution set under
subsection (d) of this section.
(H) THE STATE SHALL PAY THE C ONTRIBUTION REQUIRE D UNDER
SUBSECTION (F) OF THIS SECTION FOR :
(1) EMPLOYERS THAT ARE C OMMUNITY PROVIDERS T HAT ARE
COMMUNITY –BASED AGENCIES OR PR OGRAMS FUNDED BY THE BEHAVIORAL
HEALTH ADMINISTRATION , THE DEVELOPMENTAL DISABILITIES
ADMINISTRATION , OR THE MEDICAL CARE PROGRAMS ADMINISTRATION THAT
SERVE INDIVIDUALS WI TH MENTAL DISORDERS , SUBSTANCE USE DISORD ERS, OR A
COMBINATION OF THOSE DISORDERS OR DEVELOP MENTAL DISABILITIES ; AND
(2) COVERED EMPLOYEES WH O MAKE AN HOURLY WAG E THAT IS LESS
THAN $15 PER HOUR, UNLESS THE EMPLOYER OF THE CO VERED EMPLOYEE ELECT S
TO PAY ALL OF A PORT ION OF THE EMPLOYEE ’S REQUIRED CONTRIBUT ION.
(G) (1) THE MARYLAND DEPARTMENT OF HEALTH SHALL REIMBURS E
EACH:
(I) COMMUNITY PROVIDER T HAT IS REQUIRED TO B E LICENSED
OR CERTIFIED UNDER TITLE 7 OF THE HEALTH – GENERAL ARTICLE FOR 100% OF
THE EMPLOYER CONTRIB UTION REQUIRED UNDER SUBSECTION (F) (E) OF THIS
SECTION FOR EMPLOYEE S WHO MANAGE OR PROV IDE SERVICES UNDER TITLE 7 OF
THE HEALTH – GENERAL ARTICLE;
(II) COMMUNITY PROVIDER T HAT IS REQUIRED TO B E LICENSED
OR CERTIFIED UNDER TITLE 7.5 OF THE HEALTH – GENERAL ARTICLE FOR A
PERCENTAGE OF THE EM PLOYER CONTRIBUTION REQUIRED UNDER SUBSE CTION WES MOORE, Governor Ch. 259
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(F) (E) OF THIS SECTION FOR EMPLOYEES WHO MANAGE OR PROVIDE SERVICES
UNDER TITLE 7.5 OF THE HEALTH – GENERAL ARTICLE THAT IS EQUAL TO THE
PERCENTAGE OF REVENU E THAT IS ATTRIBUTAB LE TO FEDERAL AND STATE
MEDICAID FUNDING AND ANY OTHER STATE FUNDING RECEIVE D BY THE
COMMUNITY PROVIDER F OR THE SERVICES DURI NG THE PERIOD COVERE D BY THE
REIMBURSEMENT ; OR
(III) PROVIDER, AS DEFINED IN § 16–201.4 OF THE HEALTH –
GENERAL ARTICLE, FOR A PERCENTAGE OF THE EMPLOYER CONTRIB UTION
REQUIRED UNDER SUBSE CTION (F) (E) OF THIS SECTION FOR EMPLOYEES WHO
MANAGE OR PROVIDE SE RVICES DESCRIBED IN § 16–201.4(A) OF THE HEALTH –
GENERAL ARTICLE THAT IS EQUAL TO THE PERCENTAGE OF REVENUE
ATTRIBUTABLE TO FEDE RAL AND STATE MEDICAID FUNDING AND ANY OTHER
STATE FUNDING RECEIVE D BY THE PROVIDER FO R THE SERVICES DURIN G THE
PERIOD COVERED BY TH E REIMBURSEMENT .
(2) THE MARYLAND DEPARTMENT OF HEALTH SHALL MAKE THE
REIMBURSEMENTS REQUI RED UNDER PARAGRAPH (1) OF THIS SUBSECTION A T
LEAST QUARTERLY .
(3) TO RECEIVE REIMBURSEM ENT UNDER PARAGRAPH (1) OF THIS
SUBSECTION, A PROVIDER SHALL PRO VIDE TO THE MARYLAND DEPARTMENT OF
HEALTH ANY INFORMATIO N NECESSARY TO CARRY OUT THIS SUBSECTION IN THE
FORM AND MANNER REQU IRED BY THE MARYLAND DEPARTMENT OF HEALTH.
8.3–701.
(a) (1) Subject to paragraph (2) of this subsection, beginning January 1, 2025
2026, a covered individual taking leave from employment may submit a claim for benefits
[to]:
(i) 1. TO care for a newborn child OF THE COVERED
INDIVIDUAL DURING TH E FIRST YEAR AFTER T HE CHILD’S BIRTH; or
2. BECAUSE a child [newly] IS BEING placed for adoption,
foster care, or kinship care with the covered individual [during the first year after the birth,
adoption,] or TO CARE FOR OR BOND WITH THE CHILD DURIN G THE FIRST YEAR AFT ER
THE placement;
(ii) TO care for a family member with a serious health condition;
(iii) TO attend to a serious health condition that [results in]
PREVENTS the covered individual FROM being [unable] ABLE to perform [the] ONE OR
MORE functions of the covered individual’s position; Ch. 259 2023 LAWS OF MARYLAND
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(iv) TO care for a service member with a serious health condition
resulting from military service who is the covered individual’s next of kin; or
(v) TO attend to a qualifying exigency arising out of the deployment
of a service member who is a family member of the covered individual.
(2) (i) Except as provided under subparagraph (ii) of this paragraph, if
the need to use leave is foreseeable, an employer may require a covered employee taking
leave under this title to provide the employer with written notice of the covered employee’s
intention to take leave at least 30 days before commencing the leave.
(ii) If the need to use leave is not foreseeable, the covered employee
shall:
1. provide notice to the employer as soon as practicable; and
2. generally comply with the employer’s notice or procedural
requirements for requesting or reporting other leave, if those requirements do not interfere
with the covered employee’s ability to use leave for which benefits may be paid under this
title.
(B) (1) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , AN
INDIVIDUAL MAY FILE AN APPLICATION FOR B ENEFITS WITHIN 60 DAYS BEFORE THE
ANTICIPATED START DA TE OF THE LEAVE FOR WHICH BENEFITS MAY B E PAID
UNDER THIS TITLE , BUT NOT LATER THAN 60 DAYS AFTER THE START DATE OF THE
LEAVE.
(2) TO BE CONSIDERED COMPLETE , AN APPLICATION SHALL CONTAIN
ALL INFORMATION REQU IRED BY THE DEPARTMENT .
(3) (I) THE DEPARTMENT SHALL WAIV E THE FILING DEADLIN E
ESTABLISHED UNDER PA RAGRAPH (1) OF THIS SUBSECTION F OR GOOD CAUSE .
(II) IF THE COVERED INDIVI DUAL DOES NOT HAVE GOOD CAU SE
FOR THE DELAY IN COM PLETING THE CLAIM AP PLICATION, THE SECRETARY MAY
DELAY OR DENY BENEFI TS UNDER THIS TITLE .
[(b)] (C) (1) Subject to paragraphs (2) and (3) of this subsection, a covered
individual may take the leave for which the individual is eligible for benefits under
subsection (a) of this section on an intermittent leave schedule.
(2) If leave is taken on an intermittent leave schedule, the covered
individual shall:
WES MOORE, Governor Ch. 259
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(i) make a reasonable effort to schedule the intermittent leave in a
manner that does not unduly disrupt the operations of the employer; and
(ii) provide the employer with reasonable and practicable prior
notice of the reason for which the intermittent leave is necessary.
(3) A covered employee may not take intermittent leave in an increment of
less than 4 hours.
(4) If leave is taken on an intermittent leave schedule, an employer may
not reduce the total amount of leave to which the covered individual is entitled beyond the
amount of leave actually taken.
8.3–702.
(a) (1) Except as provided in paragraph (2) of this subsection, a covered
individual may not receive more than 12 weeks of benefits in an application year.
(2) A covered individual may receive an additional 12 weeks of benefits if
the covered individual during the same application year:
(i) 1. Received benefits because the covered individual was
eligible for benefits under § 8.3–701(a)(1)(i) of this subtitle; and
2. becomes eligible for benefits under § 8.3–701(a)(1)(iii) of
this subtitle; or
(ii) 1. Received benefits because the covered individual was
eligible for benefits under § 8.3–701(a)(1)(iii) of this subtitle; and
2. becomes eligible for benefits under § 8.3–701(a)(1)(i) of
this subtitle.
[(b) If a covered individual takes leave for which the covered individual is receiving
benefits under this title, the leave shall run concurrently with eligible leave that may be
taken by the covered individual under the federal Family and Medical Leave Act.]
(B) (C) THE DEPARTMENT MAY COUNT THE LEAVE AGAINST A COVERED
INDIVIDUAL TAKEN UNDER THE FEDE RAL FAMILY AND MEDICAL LEAVE ACT
AGAINST A COVERED IN DIVIDUAL’S MAXIMUM DURATION O F LEAVE FOR WHICH
BENEFITS ARE AVAILAB LE UNDER THIS TITLE IN AN APPLICATION YE AR FOR THE
SAME PURPOSE , IF:
(1) AN EMPLOYER DESIGNAT ES A PERIOD OF LEAVE AS COVERED BY
THE FEDERAL FAMILY AND MEDICAL LEAVE ACT FOR A COVERED IND IVIDUAL WHO
WOULD ALSO QUALIFY F OR BENEFITS UNDER § 8.3–302 OF THIS TITLE; Ch. 259 2023 LAWS OF MARYLAND
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(2) THE EMPLOYER INFORMS THE COVERED IN DIVIDUAL OF THE
INDIVIDUAL’S ELIGIBILITY FOR BE NEFITS UNDER THIS TI TLE; AND
(3) THE EMPLOYEE DECLINE S TO APPLY FOR BENEF ITS UNDER THIS
TITLE.
(c) (D) (1) A covered individual [shall exhaust all employer–provided leave
that is not required to be provided under law before receiving benefits under this title] MAY
NOT BE REQUIRED TO U SE OR EXHAUST PAID V ACATION, PAID SICK LEAVE , OR
OTHER PAID TIME OFF UNDER AN EMPLOYER PO LICY BEFORE , OR WHILE,
RECEIVING BENEFITS U NDER THIS TITLE .
[(2) For the purposes of §§ 8.3–706 and 8.3–707 of this subtitle and §§
8.3–904 and 8.3–905 of this title, employer–provided leave that is being exhausted as
required under paragraph (1) of this subsection shall be treated the same as leave from
work for which benefits may be paid under this title.]
(2) A COVERED INDIVIDUAL A ND AN EMPLOYER MAY A GREE TO USE
PAID VACATION , PAID SICK LEAVE , OR OTHER PAID TIME O FF WHILE A COVERED
INDIVIDUAL IS RECEIVING BENEFITS A VAILABLE UNDER THIS TITLE TO REPLACE
THE COVERED INDIVIDU AL’S WAGES UP TO 100% OF THE COVERED INDIV IDUAL’S
AVERAGE WEEKLY WAGE DURING THE PERIOD OF LEAVE FOR WHICH BENE FITS ARE
RECEIVED UNDER THIS TITLE.
(3) NOTWITHSTANDING PARAG RAPH (1) OF THIS SUBSECTION , AN
EMPLOYER MAY REQUIRE THAT BENEFIT PAYMENT S UNDER THIS TITLE BE MADE
CONCURRENTLY , OR OTHERWISE COORDIN ATED WITH PAYMENTS M ADE OR LEAVE
THAT IS ALLOWED UNDE R THE TERMS OF A SEP ARATE EMPLOYER –PROVIDED LEAVE
POLICY DUE TO PARENT AL CARE, FAMILY CARE, OR MILITARY LEAVE OR UNDER A
DISABILITY POLICY .
[(3)] (4) This subsection may not be construed to reduce any weeks of
leave for which benefits may be paid under this title.
(d) (E) (1) Except as provided in paragraph (2) of this subsection, an
individual receiving benefits under Title 8 of this article or wage replacement benefits
under Title 9 of this article is not eligible to receive benefits under this title.
(2) An individual receiving compensation for a permanent partial disability
under Title 9 of this article may be eligible for benefits under this title.
8.3–703.
WES MOORE, Governor Ch. 259
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(a) For the purposes of this section:
(1) the covered individual’s average weekly wage shall be calculated as the
total wages received by the covered individual over the last 680 hours for which the covered
individual was paid divided by the number of weeks worked; and
(2) the State average weekly wage shall be the wage calculated under §
9–603 of this article.
(b) (1) Subject to [paragraph] PARAGRAPHS (2) AND (3) of this subsection,
the weekly benefit amount payable to a covered individual under this title shall be:
(i) if the covered individual’s average weekly wage is 65% or less of
the State average weekly wage, 90% of the covered individual’s average weekly wage; OR
(ii) if the covered individual’s average weekly wage is greater than
65% of the State average weekly wage, the sum of:
1. 90% of the covered individual’s average weekly wage up to
65% of the State average weekly wage; and
2. 50% of the covered individual’s average weekly wage that
is greater than 65% of the State average weekly wage[; or
(iii) if the covered individual is taking partially paid leave, the lesser
of:
1. the amount required to make up the difference between
the wages paid to the covered individual while the covered individual is taking partially
paid leave and the full wages normally paid to the covered individual; and
2. if the covered individual’s average weekly wage is greater
than 65% of the State average weekly wage, the sum of:
A. 90% of the covered individual’s average weekly wage up to
65% of the State average weekly wage; and
B. 50% of the covered individual’s average weekly wage that
is greater than 65% of the State average weekly wage].
(2) THE BENEFIT PAID UNDE R THIS TITLE AND ANY ADDITIONAL PAID
LEAVE CANNOT TOTAL M ORE THAN 100% OF THE COVERED INDIV IDUAL’S AVERAGE
WEEKLY WAGE .
(3) The weekly benefit amount payable under paragraph (1) of this
subsection: Ch. 259 2023 LAWS OF MARYLAND
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(i) shall be at least $50; and
(ii) may not exceed:
1. for the 12–month period beginning January 1, 2025 2026,
$1,000; and
2. for the 12–month period beginning January 1, 2026 2027,
and each subsequent 12–month period, the amount determined and announced by the
Secretary under paragraph [(3)] (4) of this subsection.
[(3)] (4) (i) In this paragraph, “Consumer Price Index” means the
Consumer Price Index for All Urban Consumers for the
Washington–Arlington–Alexandria, DC–VA–MD–WV metropolitan area or a successor
index published by the federal Bureau of Labor Statistics.
(ii) Subject to subsection (e) of this section, for the 12–month period
beginning January 1, 2026 2027, and each subsequent 12–month period, the maximum
weekly benefit amount shall be increased by the amount, rounded to the nearest cent, that
equals the product of:
1. the maximum weekly benefit amount in effect for the
immediately preceding 12–month period; and
2. the annual percentage growth in the Consumer Price
Index for the immediately preceding 12–month period, as determined by the Secretary
under subparagraph (iii)1 of this paragraph.
(iii) Beginning September 1, 2025 2026, and on each subsequent
September 1, the Secretary shall determine and announce:
1. the annual percentage growth, if any, in the Consumer
Price Index based on the most recent 12–month period for which data are available on
September 1; and
2. the maximum weekly benefit amount effective for the
12–month period beginning the immediately following January 1.
(c) (1) [An] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS
SUBSECTION, AN increase in the weekly benefit amount under subsection [(b)(3)](B)(4) of
this section applies only to a claim for benefits [filed] THAT BEGINS after the date the
increase becomes effective.
WES MOORE, Governor Ch. 259
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(2) IF THE LEAVE FOR WHIC H BENEFITS ARE BEING PAID IS BEING
TAKEN INTERMITTENTLY , AN INCREASE IN THE W EEKLY BENEFIT AMOUNT SHALL
APPLY TO A CLAIM FOR BENEFITS AS SPECIFIE D IN REGULATIONS ADO PTED BY THE
DEPARTMENT .
(d) The Department shall:
(1) notify the employer of a covered individual within [5] 3 business days
after the covered individual files a [claim] COMPLETED APPLICATIO N for benefits under
this title;
(2) NOTIFY THE COVERED I NDIVIDUAL WITHIN 3 5 BUSINESS DAYS
AFTER THE INDIVIDUAL FILES AN APPLICATION , IF THE APPLICATION I S
CONSIDERED TO BE INC OMPLETE UNDER § 8.3–701(B)(2) OF THIS SUBTITLE DUE TO
MISSING INFORMATION THAT IS NECESSARY TO COMPLETE THE CLAIM ;
(3) approve or deny the claim and notify the covered individual and the
covered individual’s employer within 10 business days after the covered individual files the
[claim] COMPLETED APPLICATIO N;
[(3)] (4) make the first payment of benefits to a covered individual within
5 business days after the [claim] COMPLETED APPLICATIO N is approved OR THE LEAVE
HAS STARTED, WHICHEVER IS LATER ; and
[(4)] (5) make subsequent payments every 2 weeks until the benefit
period ends.
(e) (1) In this subsection, “Board” means the Board of Public Works.
(2) Subject to paragraph (4) of this subsection, on or before September 1
each year, beginning in 2025 2026, the Board shall determine whether the seasonally
adjusted total employment from the Current Employment Statistics series as reported by
the U.S. Bureau of Labor Statistics for the most recent 6–month period is negative as
compared with the immediately preceding 6–month period.
(3) (i) Subject to paragraph (4) of this subsection, the Board may
temporarily suspend an increase in the maximum weekly benefit specified under subsection
[(b)(2)(ii)] (B)(3)(II) of this section if the Board determined under paragraph (2) of this
subsection that the seasonally adjusted total employment is negative.
(ii) If the seasonally adjusted total employment is negative, the
Board may consider the performance of State revenues in the immediately preceding 6
months, as reported by the Office of the Comptroller, in determining whether to temporarily
suspend an increase to the maximum weekly benefit specified under subsection [(b)(2)(ii)]
(B)(3)(II) of this section. Ch. 259 2023 LAWS OF MARYLAND
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(4) If the Board temporarily suspends an increase to the maximum weekly
benefit specified under subsection [(b)(2)(ii)2] (B)(3)(II)2 of this section:
(i) the maximum weekly benefit in effect for the period beginning
the following January 1 shall remain the same as the rate that was in effect for the
immediately preceding 12–month period; and
(ii) the Board shall notify the Secretary that the maximum weekly
benefit increase for the period beginning the following January 1 is suspended for 1 year.
(f) The Department shall notify each employer of the increase to the maximum
weekly benefit specified under subsection [(b)(2)(ii)] (B)(3)(II) of this section.
8.3–705.
(a) (1) An employer may satisfy the requirements of this title through a
private employer plan consisting of employer–provided benefits, insurance THROUGH AN
INSURER THAT HOLDS A CERTIFICATE OF AUTHO RITY ISSUED BY THE MARYLAND
INSURANCE COMMISSIONER , or a combination of both if the private employer plan is
offered to all of the employer’s eligible employees and meets or exceeds the rights,
protections, and benefits provided to a covered employee under this title.
(2) (I) TO DETERMINE THE BENE FIT AMOUNT UNDER A P RIVATE
EMPLOYER PLAN , THE WEEKLY BENEFIT A MOUNT SHALL BE BASED ON THE
AVERAGE WEE KLY WAGE EARNED FROM THE EMPLOYER SPONSOR ING THE PRIVATE
EMPLOYER PLAN .
(II) NOTWITHSTANDING SUBPA RAGRAPH (I) OF THIS
PARAGRAPH , IF AN INDIVIDUAL HAS WORKED LESS THAN 680 HOURS FOR THE
EMPLOYER SPONSORING THE PRIVATE EMPLOYER PLAN, THE WEEKLY BENEFIT
AMOUNT SHALL BE BASED ON THE AVERAGE WEEKL Y WAGE UNDER § 8.3–703(A) OF
THIS SUBTITLE.
(III) THIS SUBSECTION MAY N OT BE CONSTRUED TO P REVENT A
PRIVATE EMPLOYER PLA N FROM PROVIDING A B ENEFIT THAT IS GREAT ER THAN
THAT PROVIDED IN § 8.3–703(A) OF THIS SUBTITLE.
(b) A private employer plan shall be filed with the Department for approval.
(c) An employer that provides covered employees with a private employer plan
and an employee that is covered by a private employer plan are exempt from the
contributions required under Subtitle 6 of this title.
WES MOORE, Governor Ch. 259
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(D) AN EMPLOYER THAT PROV IDES A PRIVATE EMPLO YER PLAN MAY NOT
DEDUCT FROM AN EMPLO YEE MORE THAN THE MA XIMUM CONTRIBUTION A MOUNT
SET BY THE DEPARTMENT .
8.3–801.
(a) An employer shall provide written notice to each employee of the rights and
duties of an employee under this title at the time of hire and annually thereafter.
(b) (1) When an employee requests leave under this title, or when an employer
knows that an employee’s leave may be for a reason under § 8.3–302 of this title, the
employer shall notify the employee of the employee’s eligibility to take leave for which
benefits may be paid under this title within 5 business days.
(2) The notice provided under paragraph (1) of this subsection shall
include:
(i) the right of [an eligible] A COVERED employee to receive
Program benefits under this title;
(ii) the procedure for filing a claim for benefits;
(iii) [an eligible] A COVERED employee’s responsibilities with
respect to providing notification prior to the commencement of leave and any penalties for
failing to do so;
(iv) the right of an employee to file a complaint for alleged violations
of this title;
(v) the right of [an eligible] A COVERED employee to job protection;
and
(vi) a description of the prohibited acts, penalties, and complaint
procedures under Subtitle 9 of this title.
(c) (1) The Department shall develop standard notices for an employer to use
under this subtitle.
(2) The notices required under this subtitle shall be provided in accordance
with regulations adopted by the Secretary.
8.3–906.
(a) (1) (I) The Secretary shall establish a system for appeals by covered
individuals [in the case of denial] REGARDING DETERMINAT IONS OF BENEFIT
AMOUNTS, BENEFIT DURATIONS, AND DENIALS of benefits under this title. Ch. 259 2023 LAWS OF MARYLAND
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(II) A COVERED INDIVIDUAL M UST FILE AN APPEAL U NDER
SUBPARAGRAPH (I) OF THIS PARAGRAPH WI THIN 30 DAYS AFTER THE
DETERMINATION IS MAD E OR BENEFITS ARE DE NIED, UNLESS GOOD CAUSE CA N BE
SHOWN FOR THE DE LAY.
(2) The Secretary may use the procedures under § 8–806 of this article for
the system required under paragraph (1) of this subsection.
(b) Judicial review of any decision with respect to benefits under this title shall
be allowed in a court of competent jurisdiction after an aggrieved party has exhausted all
administrative remedies established by the Secretary under this title.
(c) The Secretary shall implement procedures to ensure confidentiality of all
information related to any claims filed or appeals taken to the maximum extent allowed by
law.
Chapter 48 of the Acts of 2022
[SECTION 3. AND BE IT FURTHER ENACTED, That:
(a) On or before June 1, 2023, the Secretary of Labor shall set the total rate of
contribution and percentage of the total rate of contribution to be paid by employees of
employers and employers with 15 or more employees under § 8–601(a) of the Labor and
Employment Article, as enacted by Section 1 of this Act, effective October 1, 2023.
(b) The rate and percentages set under subsection (a) of this section shall be:
(1) based on the study required under Section 11(2) of this Act; and
(2) in effect from October 1, 2023, through December 31, 2025, both
inclusive.]
[SECTION 10. AND BE IT FURTHER ENACTED, That, on or before June 1, 2023,
the Secretary of Labor shall adopt regulations as required under § 8.3–403 of the Labor and
Employment Article, as enacted by Section 1 of this Act.]
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Labor and Employment
8.3–601.
WES MOORE, Governor Ch. 259
– 25 –
(h) The State shall pay the contribution required under subsection (f) of this
section for[:
(1)] employers that are community providers that are community–based
agencies or programs funded by the Behavioral Health Administration, the Developmental
Disabilities Administration, or the Medical Care Programs Administration that serve
individuals with mental disorders, substance use disorders, or a combination of those
disorders or developmental disabilities[; and
(2) covered employees who make an hourly wage that is less than $15 per
hour, unless the employer of the covered employee elects to pay all or a portion of the
employee’s required contribution].
SECTION 2. AND BE IT FURTHER ENACTED, That, on or before January 1, 2024,
the Secretary of Labor shall adopt regulations as required under § 8.3–403 of the Labor and
Employment Article.
SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take
effect July 1, 2026.
SECTION 4 3. AND BE IT FURTHER ENACTED, That , except as provided in
Section 3 of this Act, this Act shall take effect June 1, 2023.
Approved by the Governor, May 3, 2023.