EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0485*
SENATE BILL 485
K3 4lr2985
CF HB 571
By: Senator Hayes
Introduced and read first time: January 23, 2024
Assigned to: Finance
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 28, 2024
CHAPTER ______
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 Family and Medical Leave Insurance Fund, the 7
satisfaction of Program requirements through private employer plans or insurance, 8
and the use of contributions or other funding by the Secretary of Labor; and generally 9
relating to the Family and Medical Leave Insurance Program. 10
BY repealing and reenacting, without amendments, 11
Article – Labor and Employment 12
Section 8.3–101(a) and (j) 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
8.3–406(a) and (b)(5), 8.3–503, 8.3–601(a)(1), (b), and (c)(1), 8.3–701(a)(1), 19
8.3–703(a) and (b)(3), 8.3–705, 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
2 SENATE BILL 485
BY adding to 1
Article – Labor and Employment 2
Section 8.3–403(e) 3
Annotated Code of Maryland 4
(2016 Replacement Volume and 2023 Supplement) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7
Article – Labor and Employment 8
8.3–101. 9
(a) In this title the following words have the meanings indicated. 10
(d) “Covered employee” means an employee who has worked at least 680 hours 11
PERFORMING SERVICES UNDER EMPLOYMENT LOC ATED IN THE STATE over the 12
[12–month period] FOUR MOST RECENTLY C OMPLETED CALENDAR QU ARTERS FOR 13
WHICH QUARTERLY REPO RTS HAVE BEEN REQUIR ED immediately preceding the date 14
on which leave is to begin. 15
(j) “Fund” means the Family and Medical Leave Insurance Fund established 16
under § 8.3–501 of this title. 17
(r) “Wages” means all compensation that is due for employment that is: 18
(1) for an employee[: 19
(i) an hourly wage or a salary; 20
(ii) a commission; 21
(iii) compensatory pay; 22
(iv) severance pay; 23
(v) standby pay; 24
(vi) a tip or gratuity; 25
(vii) holiday or vacation pay; or 26
(viii) any other paid leave, including sick leave, that is paid to the 27
employee entirely by the employer], WAGES AS DEFINED IN § 8–101 OF THIS ARTICLE ; 28
or 29
SENATE BILL 485 3
(2) for a self–employed individual[,]: 1
(I) self–employment income, as defined in 26 U.S.C. § 1402(b); OR 2
(II) INCOME, PAY, OR LEAVE LISTED UNDE R ITEM (1) OF THIS 3
SUBSECTION THAT IS WAGES, AS DEFINED IN § 8–101 OF THIS ARTICLE , EARNED 4
FROM A C CORPORATION OR AN S CORPORATION IF THE I NCOME, PAY, OR LEAVE IS 5
PAID TO THE OWNER WH O IS THE SOLE EMPLOYEE OF A C CORPORATION OR AN S 6
CORPORATION . 7
8.3–102. 8
(a) (1) This subsection does not apply to the disclosure of information to: 9
(i) a public employee in the performance of the public employee’s 10
official duties; 11
(ii) the individual to whom the information relates; [or] 12
(iii) if an authorized representative has the signed authorization of 13
the individual to whom the information relates, the authorized representative; OR 14
(IV) EMPLOYERS WHOSE EMPL OYEES HAVE FILED CLA IMS WITH 15
THE DEPARTMENT FOR THE PU RPOSE OF CLAIMS ADMI NISTRATION. 16
(2) An employee of the Department may not disclose PERSONAL 17
IDENTIFYING information relating to: 18
(I) an individual who has applied for or received benefits under this 19
title; 20
(II) AN INDIVIDUAL WHOSE EMPLOYMENT DAT A HAS BEEN 21
SUBMITTED TO THE DEPARTMENT BY THE IND IVIDUAL’S EMPLOYER UNDER THI S 22
TITLE; OR 23
(III) A SELF–EMPLOYED INDIVIDUAL WHO SUBMITTED DATA T O 24
THE DEPARTMENT UNDER THIS TITLE. 25
(b) This title preempts the authority of a local jurisdiction to enact a law on or 26
after June 1, 2022, that establishes a paid family and medical leave insurance program for 27
employees of an employer other than the local jurisdiction. 28
8.3–201. 29
4 SENATE BILL 485
(b) (1) A self–employed individual WHO IS A RESIDENT OF THE STATE may 1
elect to participate in the Program by filing a written notice of election with the Secretary 2
in accordance with regulations adopted by the Secretary. 3
8.3–302. 4
The purpose of the Program is to provide temporary benefits to a covered individual 5
who is taking leave from employment: 6
(1) (i) to care for or bond with a child of the covered individual during 7
the first year after the child’s birth; or 8
(ii) during the process through which a child is being placed with the 9
covered individual through foster care, kinship care, or adoption and to care for and bond 10
with the child during the first year after the placement; 11
(2) to care for a family member with a serious health condition; 12
(3) because the covered individual has a serious health condition that 13
results in the covered individual being unable to perform the functions of the covered 14
individual’s position; 15
(4) to care for a service member [who is] FOR WHOM the covered 16
[individual’s] INDIVIDUAL IS next of kin; or 17
(5) because the covered individual has a qualifying exigency arising out of 18
the deployment of a service member who is a family member of the covered individual. 19
8.3–403. 20
(a) The Secretary, in consultation with other State agencies and relevant 21
stakeholders, shall: 22
(1) subject to subsection (b) of this section, adopt regulations necessary to 23
carry out this title; 24
(2) establish procedures and forms for filing claims for benefits, including: 25
(i) procedures for notifying an employer within 5 business days after 26
any of the following occurs: 27
1. an employee files an electronic application regarding a 28
claim for benefits; 29
2. an employee’s paper application regarding a claim for 30
benefits is processed; 31
SENATE BILL 485 5
3. a determination regarding a claim for benefits is made; 1
4. an appeal for a determination regarding a claim for 2
benefits is filed; or 3
5. a change is made to a determination regarding a claim for 4
benefits; and 5
(ii) notices of elections by self–employed individuals for benefits 6
under § 8.3–201 of this title; 7
(3) ESTABLISH PROCEDURES AND FORMS FOR ELECTR ONIC FILING 8
OF REPORTS, NOTICES, AND OTHER REQUIRED D OCUMENTS BY EMPLOYER S; 9
[(3)] (4) use information–sharing and integration technology to facilitate 10
the disclosure of relevant information or records needed for the administration of this title; 11
and 12
[(4)] (5) subject to subsection (d) of this section, carry out a public 13
education program. 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: 16
(I) pay for and carry out the requirements under subsection [(a)(4)] 17
(A)(5) of this section; OR 18
(II) ISSUE GRANTS. 19
(2) Materials used in the public education program required under 20
subsection [(a)(4)] (A)(5) of this section shall be made available in English and Spanish. 21
(E) THE SECRETARY MAY USE A P ORTION OF THE FUNDS PAID UNDER § 22
8.3–601 OF THIS TITLE OR OTH ER AVAILABLE FUNDING TO AWARD GRANTS TO 23
FACILITATE COMMUNITY PARTNERSHIPS IN AMOU NTS THAT, IN THE AGGREGATE , 24
DO NOT EXCEED THE AMOUNT AP PROPRIATED IN THE DEPARTMENT ’S ANNUAL 25
BUDGET FOR THIS PURP OSE. 26
8.3–406. 27
(a) On or before [September 1] NOVEMBER 15 each year, the Secretary shall 28
submit to the Governor and, in accordance with § 2–1257 of the State Government Article, 29
the General Assembly an annual report on the administration and operation of the Program 30
during the immediately preceding fiscal year. 31
(b) The annual report shall include information regarding: 32 6 SENATE BILL 485
(5) public outreach and technical assistance efforts, INCLUDING ANY 1
GRANTS ISSUED UNDER § 8.3–403(D)(1)(II) OF THIS SUBTITLE ; 2
8.3–503. 3
(a) The Fund consists of: 4
(1) employee contributions; 5
(2) self–employed individual contributions; 6
(3) employer contributions; 7
(4) APPLICATION AND APPL ICATION RENEWAL FEES PAID AS 8
REQUIRED IN REGULATI ONS ADOPTED UNDER § 8.3–705(B)(3) OF THIS TITLE; 9
[(4)] (5) money paid to the Fund for the purpose of reimbursing the 10
Secretary under § 8.3–902 of this title for benefits paid in error; 11
(6) MONEY COLLECTED UNDE R: 12
(I) § 8.3–903(1) OF THIS TITLE FOR AS SESSED CONTRIBUTIONS 13
AND INTEREST FOR AN EMPLOYER’S OR A SELF–EMPLOYED INDIVIDUAL ’S FAILURE 14
TO PAY CONTRIBUTIONS ; AND 15
(II) § 8.3–906(A)(1)(III) OF THIS TITLE FOR TH E DEPARTMENT ’S 16
COSTS OF AN APPEAL A GAINST AN EMPLOYER OR INSURER ; 17
[(5)] (7) interest earned on money in the Fund; and 18
[(6)] (8) money received for the Fund from any other source. 19
(b) Money in the Fund may be commingled. 20
(c) (1) [The] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 21
Fund may be used only for the purposes of this title. 22
(2) FEES PAID INTO THE FUND UNDER SUBSECTION (A)(4) OF THIS 23
SECTION MAY BE USED ONLY FOR ADMINISTRAT IVE PURPOSES OF THE PROGRAM. 24
8.3–601. 25
(a) (1) Beginning [October 1, 2024] JULY 1, 2025, each employee of an 26
employer, each employer with 15 or more employees, and each self–employed individual 27
participating in the Program shall contribute to the Fund. 28 SENATE BILL 485 7
(b) (1) Subject to subsection (a)(2) of this section, on or before [October 1, 2023] 1
FEBRUARY 1, 2024 2025, the Secretary shall set the total rate of contribution based on 2
available cost analyses of the Program. 3
(2) The rate set under paragraph (1) of this subsection shall be in effect for 4
the period from [October 1, 2024] JULY 1, 2025, to June 30, 2026, both inclusive. 5
(c) (1) On or before November 15 each year, beginning in [2025] 2026, the 6
Secretary shall conduct a cost analysis of the Program that is focused on the cost of 7
maintaining solvency and paying benefits to covered individuals that will be used to 8
determine the appropriate total rate of contribution to the Fund. 9
8.3–701. 10
(a) (1) Subject to paragraph (2) of this subsection, beginning [January] JULY 11
1, 2026, a covered individual taking leave from employment may submit a claim for 12
benefits: 13
(i) 1. to care for a newborn child of the covered individual during 14
the first year after the child’s birth; or 15
2. because a child is being placed for adoption, foster care, or 16
kinship care with the covered individual or to care for or bond with the child during the 17
first year after the placement; 18
(ii) to care for a family member with a serious health condition; 19
(iii) to attend to a serious health condition that results in the covered 20
individual being unable to perform the functions of the covered individual’s position; 21
(iv) to care for a service member with a serious health condition 22
resulting from military service [who is] FOR WHOM the covered [individual’s] INDIVIDUAL 23
IS next of kin; or 24
(v) to attend to a qualifying exigency arising out of the deployment 25
of a service member who is a family member of the covered individual. 26
8.3–703. 27
(a) For the purposes of this section: 28
(1) the covered individual’s average weekly wage shall be calculated as the 29
total wages received by the covered individual [over the last 680 hours for which the covered 30
individual was paid divided by the number of weeks worked] IN THE HIGHEST OF TH E 31 8 SENATE BILL 485
PREVIOUS FOUR COMPLETED CALEN DAR QUARTERS FOR WHICH QUARTERLY 1
REPORTS HAVE BEEN RE QUIRED, DIVIDED BY 13; and 2
(2) the State average weekly wage shall be the wage calculated under § 3
9–603 of this article. 4
(b) (3) The weekly benefit amount payable under paragrap h (1) of this 5
subsection: 6
(i) shall be at least $50; and 7
(ii) may not exceed: 8
1. for the [12–month] 6–MONTH period beginning [January] 9
JULY 1, 2026, $1,000; and 10
2. for the 12–month period beginning January 1, 2027, and 11
each subsequent 12–month period, the amount determined and announced by the Secretary 12
under paragraph (4) of this subsection. 13
8.3–705. 14
(a) (1) An employer AUTHORIZED BY THE SECRETARY may satisfy the 15
requirements of this title through a private employer plan consisting of employer–provided 16
benefits[,] OR insurance through an insurer that holds a certificate of authority issued by 17
the Maryland Insurance Commissioner[, or a combination of both] if the private employer 18
plan is [offered] PROVIDED to all of the employer’s eligible employees and meets or exceeds 19
the rights, protections, and benefits provided to a covered employee under this title. 20
(2) (i) To determine the benefit amount under a private employer plan, 21
the weekly benefit amount shall be based on the average weekly wage earned from the 22
employer sponsoring the private employer plan. 23
(ii) Notwithstanding subparagraph (i) of this paragraph, if an 24
individual has worked less than 680 hours for the employer sponsoring the private 25
employer plan, the weekly benefit amount shall be based on the average weekly wage under 26
§ 8.3–703(a) of this subtitle. 27
(iii) This subsection may not be construed to prevent a private 28
employer plan from providing a benefit that is greater than that provided in § 8.3–703(a) 29
of this subtitle. 30
(b) (1) A private employer plan shall be filed with the Department for 31
approval. 32
SENATE BILL 485 9
(2) (I) THE SECRETARY SHALL ESTAB LISH REASONABLE CRIT ERIA 1
FOR DETERMINING WHIC H EMPLOYERS ARE AUTH ORIZED TO MEET THE 2
REQUIREMENTS OF THIS TITLE THROUGH EMPLOYER–PROVIDED BENEFITS . 3
(II) THE CRITERIA ESTABLIS HED UNDER SUBPARAGRA PH (I) OF 4
THIS PARAGRAPH MAY I NCLUDE THE EMPLOYER ’S: 5
1. NUMBER OF EMPLOYEES ; 6
2. CAPITALIZATION ; 7
3. BONDEDNESS ; AND 8
4. STATUS AS A GOVERNME NT EMPLOYER . 9
(3) THE DEPARTMENT MAY ADOPT REGULATIONS THAT EST ABLISH 10
REASONABLE APPLICATI ON AND APPLICATION R ENEWAL FEES FOR PRIVATE 11
EMPLOYER PLANS UNDER THIS SECTION . 12
(c) An employer that provides covered employees with a private employer plan 13
and an employee that is covered by a private employer plan are exempt from the 14
contributions required under Subtitle 6 of this title. 15
(d) An employer that provides a private employer plan may not deduct from an 16
employee more than [the maximum] 50% OF THE contribution amount set by the 17
Department UNDER § 8.3–601(B) OF THIS TITLE. 18
8.3–903. 19
If an employer OR A SELF–EMPLOYED INDIVIDUAL fails to pay the contributions 20
due to the Fund, the Secretary may, in accordance with § 8.3–404 of this title: 21
(1) assess the amount of contributions and interest due; 22
(2) make an additional assessment in an amount not to exceed two times 23
the contributions withheld, as a penalty for failure to pay the contributions due; and 24
(3) order an audit of the employer for the immediately following fiscal year 25
to investigate and determine compliance with this title and Titles 3, 8, and 9 of this article. 26
8.3–905. 27
(a) If an employee OR THE DEPARTMENT believes that an employer, A 28
SELF–EMPLOYED INDIVIDUAL , OR AN INSURER has violated this title OR 29
REGULATIONS ADOPTED BY THE DEPARTMENT UNDER THIS TITLE, the employee OR 30 10 SENATE BILL 485
THE DEPARTMENT may file a written complaint with the [Secretary] SECRETARY’S 1
DESIGNEE. 2
(b) (1) Within 90 days after the receipt of a written complaint, the [Secretary] 3
SECRETARY’S DESIGNEE shall conduct an investigation and attempt to resolve the issue 4
informally through mediation. 5
(2) (i) If the [Secretary] SECRETARY’S DESIGNEE is unable to resolve 6
an issue through mediation during the period stated in paragraph (1) of this subsection and 7
the [Secretary] SECRETARY’S DESIGNEE determines that an employer has violated this 8
subtitle, the [Secretary] SECRETARY’S DESIGNEE shall issue an order. 9
(ii) An order issued under subparagraph (i) of this paragraph: 10
1. shall describe the violation; 11
2. shall direct, if appropriate, the recovery of lost wages and 12
damages equal to the amount of wages, salary, employment benefits, or other compensation 13
denied or lost, and any actual economic damages; 14
3. may, in the Secretary’s discretion, seek reinstatement or 15
the hiring of employees with or without back pay; and 16
4. may, in the [Commissioner’s] discretion OF THE 17
SECRETARY’S DESIGNEE, assess a civil penalty of up to $1,000 for each employee for 18
whom the employer is not in compliance with this title. 19
(3) The actions taken under paragraphs (1) and (2) of this subsection are 20
subject to the hearing and notice requirements of Title 10, Subtitle 2 of the State 21
Government Article. 22
8.3–906. 23
(a) (1) (i) The Secretary shall establish a system for appeals by covered 24
individuals regarding determinations of benefit amounts, benefit durations, and denials of 25
benefits under this title. 26
(ii) A covered individual must file an appeal under subparagraph (i) 27
of this paragraph within 30 days after the determination is made or benefits are denied, 28
unless good cause can be shown for the delay. 29
(III) IF A COVERED INDIVIDU AL PREVAILS IN AN AP PEAL OF AN 30
ADVERSE DECISION OF AN EMPLOYER OR INSUR ER, THE DEPARTMENT MAY ASSESS 31
THE DEPARTMENT ’S COSTS OF THE APPEA L AGAINST THE EMPLOY ER OR INSURER. 32
SENATE BILL 485 11
(2) The Secretary may use the procedures under § 8–806 of this article for 1
the system required under paragraph (1) of this subsection. 2
(b) Judicial review of any decision with respect to benefits under this title shall 3
be allowed in a court of competent jurisdiction after an aggrieved party has exhausted all 4
administrative remedies established by the Secretary under this title. 5
(c) The Secretary shall implement procedures to ensure confidentiality of all 6
information related to any claims filed or appeals taken to the maximum extent allowed by 7
law. 8
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 9
October 1, 2024. 10
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.