EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0485*
SENATE BILL 485
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By: Senator Hayes
Introduced and read first time: January 23, 2024
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Family and Medical Leave Insurance Program – Modifications 2
FOR the purpose of modifying provisions of law governing application, administration, and 3
enforcement of the Family and Medical Leave Insurance Program, including 4
provisions related to the payment of contributions, the calculation of the average 5
weekly wage, the submission of claims for benefits, the application of the Program 6
to self–employed individuals, the satisfaction of Program requirements through 7
private employer plans or insurance, and the use of contributions or other funding 8
by the Secretary of Labor; and generally relating to the Family and Medical Leave 9
Insurance Program. 10
BY repealing and reenacting, without amendments, 11
Article – Labor and Employment 12
Section 8.3–101(a) 13
Annotated Code of Maryland 14
(2016 Replacement Volume and 2023 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Labor and Employment 17
Section 8.3–101(d) and (r), 8.3–102, 8.3–201(b)(1), 8.3–302, 8.3–403(a) and (d), 18
8.3–601(a)(1), (b), and (c)(1), 8.3–701(a)(1), 8.3–703(a) and (b)(3), 8.3–705, 19
8.3–903, 8.3–905(a) and (b), and 8.3–906 20
Annotated Code of Maryland 21
(2016 Replacement Volume and 2023 Supplement) 22
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
That the Laws of Maryland read as follows: 24
Article – Labor and Employment 25
8.3–101. 26 2 SENATE BILL 485
(a) In this title the following words have the meanings indicated. 1
(d) “Covered employee” means an employee who has worked at least 680 hours 2
PERFORMING SERVICES UNDER EMPLOYMENT L OCATED IN THE STATE over the 3
[12–month period] FOUR MOST RECENTLY C OMPLETED CALENDAR QU ARTERS FOR 4
WHICH QUARTERLY REPO RTS HAVE BEEN REQUIR ED immediately preceding the date 5
on which leave is to begin. 6
(r) “Wages” means all compensation that is due for employment that is: 7
(1) for an employee[: 8
(i) an hourly wage or a salary; 9
(ii) a commission; 10
(iii) compensatory pay; 11
(iv) severance pay; 12
(v) standby pay; 13
(vi) a tip or gratuity; 14
(vii) holiday or vacation pay; or 15
(viii) any other paid leave, including sick leave, that is paid to the 16
employee entirely by the employer], WAGES AS DEFINED IN § 8–101 OF THIS ARTICLE ; 17
or 18
(2) for a self–employed individual[,]: 19
(I) self–employment income, as defined in 26 U.S.C. § 1402(b); OR 20
(II) INCOME, PAY, OR LEAVE LISTED UNDE R ITEM (1) OF THIS 21
SUBSECTION THAT IS E ARNED FROM A C CORPORATION OR AN S CORPORATION IF 22
THE INCOME, PAY, OR LEAVE IS PAID TO THE OWNER WHO IS THE SOLE EMPLOYEE 23
OF A C CORPORATION OR AN S CORPORATION . 24
8.3–102. 25
(a) (1) This subsection does not apply to the disclosure of information to: 26
(i) a public employee in the performance of the public employee’s 27
official duties; 28 SENATE BILL 485 3
(ii) the individual to whom the information relates; [or] 1
(iii) if an authorized representative has the signed authorization of 2
the individual to whom the information relates, the authorized representative; OR 3
(IV) EMPLOYERS WHOSE EMPL OYEES HAVE FILED CLA IMS WITH 4
THE DEPARTMENT FOR THE PU RPOSE OF CLAIMS ADMI NISTRATION. 5
(2) An employee of the Department may not disclose PERSONAL 6
IDENTIFYING information relating to: 7
(I) an individual who has applied for or received benefits under this 8
title; 9
(II) AN INDIVIDUAL WHOSE EMPLOYMENT DATA HAS BEEN 10
SUBMITTED TO THE DEPARTMENT BY TH E INDIVIDUAL’S EMPLOYER UNDER THI S 11
TITLE; OR 12
(III) A SELF–EMPLOYED INDIVIDUAL WHO SUBMITTED DATA T O 13
THE DEPARTMENT UNDER THIS TITLE. 14
(b) This title preempts the authority of a local jurisdiction to enact a law on or 15
after June 1, 2022, that establishes a paid family and medical leave insurance program for 16
employees of an employer other than the local jurisdiction. 17
8.3–201. 18
(b) (1) A self–employed individual WHO IS A RESIDENT OF THE STATE may 19
elect to participate in the Program by filing a written notice of election with the Secretary 20
in accordance with regulations adopted by the Secretary. 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 individual during 25
the first year after the child’s birth; or 26
(ii) during the process through which a child is being placed with the 27
covered individual through foster care, kinship care, or adoption and to care for and bond 28
with the child during the first year after the placement; 29
(2) to care for a family member with a serious health condition; 30
4 SENATE BILL 485
(3) because the covered individual has a serious health condition that 1
results in the covered individual being unable to perform the functions of the covered 2
individual’s position; 3
(4) to care for a service member [who is] FOR WHOM the covered 4
[individual’s] INDIVIDUAL IS next of kin; or 5
(5) because the covered individual has a qualifying exigency arising out of 6
the deployment of a service member who is a family member of the covered individual. 7
8.3–403. 8
(a) The Secretary, in consultation with other State agencies and relevant 9
stakeholders, shall: 10
(1) subject to subsection (b) of this section, adopt regulations necessary to 11
carry out this title; 12
(2) establish procedures and forms for filing claims for benefits, including: 13
(i) procedures for notifying an employer within 5 business days after 14
any of the following occurs: 15
1. an employee files an electronic application regarding a 16
claim for benefits; 17
2. an employee’s paper application regarding a claim for 18
benefits is processed; 19
3. a determination regarding a claim for benefits is made; 20
4. an appeal for a determination regarding a claim for 21
benefits is filed; or 22
5. a change is made to a determination regarding a claim for 23
benefits; and 24
(ii) notices of elections by self–employed individuals for benefits 25
under § 8.3–201 of this title; 26
(3) ESTABLISH PROCEDURES AND FORMS FOR ELECTRONIC FILING 27
OF REPORTS, NOTICES, AND OTHER REQUIRED D OCUMENTS BY EMPLOYER S; 28
[(3)] (4) use information–sharing and integration technology to facilitate 29
the disclosure of relevant information or records needed for the administration of this title; 30
and 31
SENATE BILL 485 5
[(4)] (5) subject to subsection (d) of this section, carry out a public 1
education program. 2
(d) (1) The Secretary may use a portion of the funds paid under § 8.3–601 of 3
this title or other available funding to: 4
(I) pay for and carry out the requirements under subsection [(a)(4)] 5
(A)(5) of this section; OR 6
(II) ISSUE GRANTS. 7
(2) Materials used in the public education program required under 8
subsection [(a)(4)] (A)(5) of this section shall be made available in English and Spanish. 9
8.3–601. 10
(a) (1) Beginning [October 1, 2024] JULY 1, 2025, each employee of an 11
employer, each employer with 15 or more employees, and each self–employed individual 12
participating in the Program shall contribute to the Fund. 13
(b) (1) Subject to subsection (a)(2) of this section, on or before [October 1, 2023] 14
FEBRUARY 1, 2024, the Secretary shall set the total rate of contribution based on 15
available cost analyses of the Program. 16
(2) The rate set under paragraph (1) of this subsection shall be in effect for 17
the period from [October 1, 2024] JULY 1, 2025, to June 30, 2026, both inclusive. 18
(c) (1) On or before November 15 each year, beginning in [2025] 2026, the 19
Secretary shall conduct a cost analysis of the Program that is focused on the cost of 20
maintaining solvency and paying benefits to covered individuals that will be used to 21
determine the appropriate total rate of contribution to the Fund. 22
8.3–701. 23
(a) (1) Subject to paragraph (2) of this subsection, beginning [January] JULY 24
1, 2026, a covered individual taking leave from employment may submit a claim for 25
benefits: 26
(i) 1. to care for a newborn child of the covered individual during 27
the first year after the child’s birth; or 28
2. because a child is being placed for adoption, foster care, or 29
kinship care with the covered individual or to care for or bond with the child during the 30
first year after the placement; 31
(ii) to care for a family member with a serious health condition; 32 6 SENATE BILL 485
(iii) to attend to a serious health condition that results in the covered 1
individual being unable to perform the functions of the covered individual’s position; 2
(iv) to care for a service member with a serious health condition 3
resulting from military service [who is] FOR WHOM the covered [individual’s] INDIVIDUAL 4
IS next of kin; or 5
(v) to attend to a qualifying exigency arising out of the deployment 6
of a service member who is a family member of the covered individual. 7
8.3–703. 8
(a) For the purposes of this section: 9
(1) the covered individual’s average weekly wage shall be calculated as the 10
total wages received by the covered individual [over the last 680 hours for which the covered 11
individual was paid divided by the number of weeks worked] IN THE HIGHEST OF TH E 12
PREVIOUS FOUR COMPLE TED CALENDAR QUARTER S FOR WHICH QUARTERLY 13
REPORTS HAVE BEEN RE QUIRED, DIVIDED BY 13; and 14
(2) the State average weekly wage shall be the wage calculated under § 15
9–603 of this article. 16
(b) (3) The weekly benefit amount payable under paragraph (1) of this 17
subsection: 18
(i) shall be at least $50; and 19
(ii) may not exceed: 20
1. for the [12–month] 6–MONTH period beginning [January] 21
JULY 1, 2026, $1,000; and 22
2. for the 12–month period beginning January 1, 2027, and 23
each subsequent 12–month period, the amount determined and announced by the Secretary 24
under paragraph (4) of this subsection. 25
8.3–705. 26
(a) (1) An employer AUTHORIZED BY THE SECRETARY may satisfy the 27
requirements of this title through a private employer plan consisting of employer–provided 28
benefits[,] OR insurance through an insurer that holds a certificate of authority issued by 29
the Maryland Insurance Commissioner[, or a combination of both] if the private employer 30
plan is [offered] PROVIDED to all of the employer’s eligible employees and meets or exceeds 31
the rights, protections, and benefits provided to a covered employee under this title. 32 SENATE BILL 485 7
(2) (i) To determine the benefit amount under a private employer plan, 1
the weekly benefit amount shall be based on the average weekly wage earned from the 2
employer sponsoring the private employer plan. 3
(ii) Notwithstanding subparagraph (i) of this paragraph, if an 4
individual has worked less than 680 hours for the employer sponsoring the private 5
employer plan, the weekly benefit amount shall be based on the average weekly wage under 6
§ 8.3–703(a) of this subtitle. 7
(iii) This subsection may not be construed to prevent a private 8
employer plan from providing a benefit that is greater than that provided in § 8.3–703(a) 9
of this subtitle. 10
(b) (1) A private employer plan shall be filed with the Department for 11
approval. 12
(2) (I) THE SECRETARY SHALL ESTAB LISH REASONABLE CRIT ERIA 13
FOR DETERMINING WHIC H EMPLOYERS ARE AUTH ORIZED TO MEET THE 14
REQUIREMENTS OF THIS TITLE THROUGH EMPLOY ER–PROVIDED BENEFITS . 15
(II) THE CRITERIA ES TABLISHED UNDER SUBP ARAGRAPH (I) OF 16
THIS PARAGRAPH MAY I NCLUDE THE EMPLOYER ’S: 17
1. NUMBER OF EMPLOYEES ; 18
2. CAPITALIZATION ; 19
3. BONDEDNESS ; AND 20
4. STATUS AS A GOVERNME NT EMPLOYER . 21
(3) THE DEPARTMENT MAY ADOPT REGULATIONS THAT EST ABLISH 22
FEES UNDER THIS SECT ION. 23
(c) An employer that provides covered employees with a private employer plan 24
and an employee that is covered by a private employer plan are exempt from the 25
contributions required under Subtitle 6 of this title. 26
(d) An employer that provides a private employer plan may not deduct from an 27
employee more than [the maximum] 50% OF THE contribution amount set by the 28
Department UNDER § 8.3–601(B) OF THIS TITLE. 29
8.3–903. 30
8 SENATE BILL 485
If an employer OR A SELF–EMPLOYED INDIVIDUAL fails to pay the contributions 1
due to the Fund, the Secretary may, in accordance with § 8.3–404 of this title: 2
(1) assess the amount of contributions and interest due; 3
(2) make an additional assessment in an amount not to exceed two times 4
the contributions withheld, as a penalty for failure to pay the contributions due; and 5
(3) order an audit of the employer for the immediately following fiscal year 6
to investigate and determine compliance with this title and Titles 3, 8, and 9 of this article. 7
8.3–905. 8
(a) If an employee OR THE DEPARTMENT believes that an employer, A 9
SELF–EMPLOYED INDIVIDUAL , OR AN INSURER has violated this title OR 10
REGULATIONS ADOPTED BY THE DEPARTMENT UNDER THIS TITLE, the employee OR 11
THE DEPARTMENT may file a written complaint with the [Secretary] SECRETARY’S 12
DESIGNEE. 13
(b) (1) Within 90 days after the receipt of a written complaint, the [Secretary] 14
SECRETARY’S DESIGNEE shall conduct an investigation and attempt to resolve the issue 15
informally through mediation. 16
(2) (i) If the [Secretary] SECRETARY’S DESIGNEE is unable to resolve 17
an issue through mediation during the period stated in paragraph (1) of this subsection and 18
the [Secretary] SECRETARY’S DESIGNEE determines that an employer has violated this 19
subtitle, the [Secretary] SECRETARY’S DESIGNEE shall issue an order. 20
(ii) An order issued under subparagraph (i) of this paragraph: 21
1. shall describe the violation; 22
2. shall direct, if appropriate, the recovery of lost wages and 23
damages equal to the amount of wages, salary, employment benefits, or other compensation 24
denied or lost, and any actual economic damages; 25
3. may, in the Secretary’s discretion, seek reinstatement or 26
the hiring of employees with or without back pay; and 27
4. may, in the [Commissioner’s] discretion OF THE 28
SECRETARY’S DESIGNEE, assess a civil penalty of up to $1,000 for each employee for 29
whom the employer is not in compliance with this title. 30
(3) The actions taken under paragraphs (1) and (2) of this subsection are 31
subject to the hearing and notice requirements of Title 10, Subtitle 2 of the State 32
Government Article. 33 SENATE BILL 485 9
8.3–906. 1
(a) (1) (i) The Secretary shall establish a system for appeals by covered 2
individuals regarding determinations of benefit amounts, benefit durations, and denials of 3
benefits under this title. 4
(ii) A covered individual must file an appeal under subparagraph (i) 5
of this paragraph within 30 days after the determination is made or benefits are denied, 6
unless good cause can be shown for the delay. 7
(III) IF A COVERED INDIVID UAL PREVAILS IN AN A PPEAL OF AN 8
ADVERSE DECISION OF AN EMPLOYER OR INSUR ER, THE DEPARTMENT MAY ASSESS 9
THE DEPARTMENT ’S COSTS OF THE APPEA L AGAINST THE EMPLOY ER OR INSURER. 10
(2) The Secretary may use the procedures under § 8–806 of this article for 11
the system required under paragraph (1) of this subsection. 12
(b) Judicial review of any decision with respect to benefits under this title shall 13
be allowed in a court of competent jurisdiction after an aggrieved party has exhausted all 14
administrative remedies established by the Secretary under this title. 15
(c) The Secretary shall implement procedures to ensure confidentiality of all 16
information related to any claims filed or appeals taken to the maximum extent allowed by 17
law. 18
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
October 1, 2024. 20