MD
Maryland Senate Bill SB485

Maryland 2024 Regular Session

Maryland Senate Bill SB485 Compare Versions

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1- WES MOORE, Governor Ch. 266
21
3-– 1 –
4-Chapter 266
5-(Senate Bill 485)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *sb0485*
89
9-Family and Medical Leave Insurance Program – Modifications
10+SENATE BILL 485
11+K3 4lr2985
12+ CF HB 571
13+By: Senator Hayes
14+Introduced and read first time: January 23, 2024
15+Assigned to: Finance
16+Committee Report: Favorable with amendments
17+Senate action: Adopted
18+Read second time: February 28, 2024
1019
11-FOR the purpose of modifying provisions of law governing application, administration, and
12-enforcement of the Family and Medical Leave Insurance Program, including
13-provisions related to the payment of contributions, the calculation of the average
14-weekly wage, the submission of claims for benefits, the application of the Program
15-to self–employed individuals, the Family and Medical Leave Insurance Fund, the
16-satisfaction of Program requirements through private employer plans or insurance,
17-and the use of contributions or other funding by the Secretary of Labor; and generally
18-relating to the Family and Medical Leave Insurance Program.
20+CHAPTER ______
1921
20-BY repealing and reenacting, without amendments,
21- Article – Labor and Employment
22-Section 8.3–101(a) and (j)
23- Annotated Code of Maryland
24- (2016 Replacement Volume and 2023 Supplement)
22+AN ACT concerning 1
2523
26-BY repealing and reenacting, with amendments,
27- Article – Labor and Employment
28-Section 8.3–101(d) and (r), 8.3–102, 8.3–201(b)(1), 8.3–302, 8.3–403(a) and (d),
29-8.3–406(a) and (b)(5), 8.3–503, 8.3–601(a)(1), (b), and (c)(1), 8.3–701(a)(1),
30-8.3–703(a) and (b)(3), 8.3–705, 8.3–903, 8.3–905(a) and (b), and 8.3–906
31- Annotated Code of Maryland
32- (2016 Replacement Volume and 2023 Supplement)
24+Family and Medical Leave Insurance Program – Modifications 2
3325
34-BY adding to
35- Article – Labor and Employment
36-Section 8.3–403(e)
37- Annotated Code of Maryland
38- (2016 Replacement Volume and 2023 Supplement)
26+FOR the purpose of modifying provisions of law governing application, administration, and 3
27+enforcement of the Family and Medical Leave Insurance Program, including 4
28+provisions related to the payment of contributions, the calculation of the average 5
29+weekly wage, the submission of claims for benefits, the application of the Program 6
30+to self–employed individuals, the Family and Medical Leave Insurance Fund, the 7
31+satisfaction of Program requirements through private employer plans or insurance, 8
32+and the use of contributions or other funding by the Secretary of Labor; and generally 9
33+relating to the Family and Medical Leave Insurance Program. 10
3934
40- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
41-That the Laws of Maryland read as follows:
35+BY repealing and reenacting, without amendments, 11
36+ Article – Labor and Employment 12
37+Section 8.3–101(a) and (j) 13
38+ Annotated Code of Maryland 14
39+ (2016 Replacement Volume and 2023 Supplement) 15
4240
43-Article – Labor and Employment
41+BY repealing and reenacting, with amendments, 16
42+ Article – Labor and Employment 17
43+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
44+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
45+8.3–703(a) and (b)(3), 8.3–705, 8.3–903, 8.3–905(a) and (b), and 8.3–906 20
46+ Annotated Code of Maryland 21
47+ (2016 Replacement Volume and 2023 Supplement) 22
48+ 2 SENATE BILL 485
4449
45-8.3–101.
4650
47- (a) In this title the following words have the meanings indicated.
48- Ch. 266 2024 LAWS OF MARYLAND
51+BY adding to 1
52+ Article – Labor and Employment 2
53+Section 8.3–403(e) 3
54+ Annotated Code of Maryland 4
55+ (2016 Replacement Volume and 2023 Supplement) 5
4956
50-– 2 –
51- (d) “Covered employee” means an employee who has worked at least 680 hours
52-PERFORMING SERVICES UNDER EMPLOYMENT LOC ATED IN THE STATE over the
53-[12–month period] FOUR MOST RECENTLY C OMPLETED CALENDAR QU ARTERS FOR
54-WHICH QUARTERLY REPO RTS HAVE BEEN REQUIR ED immediately preceding the date
55-on which leave is to begin.
57+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
58+That the Laws of Maryland read as follows: 7
5659
57- (j) “Fund” means the Family and Medical Leave Insurance Fund established
58-under § 8.3–501 of this title.
60+Article – Labor and Employment 8
5961
60- (r) “Wages” means all compensation that is due for employment that is:
62+8.3–101. 9
6163
62- (1) for an employee[:
64+ (a) In this title the following words have the meanings indicated. 10
6365
64- (i) an hourly wage or a salary;
66+ (d) “Covered employee” means an employee who has worked at least 680 hours 11
67+PERFORMING SERVICES UNDER EMPLOYMENT LOC ATED IN THE STATE over the 12
68+[12–month period] FOUR MOST RECENTLY C OMPLETED CALENDAR QU ARTERS FOR 13
69+WHICH QUARTERLY REPO RTS HAVE BEEN REQUIR ED immediately preceding the date 14
70+on which leave is to begin. 15
6571
66- (ii) a commission;
72+ (j) “Fund” means the Family and Medical Leave Insurance Fund established 16
73+under § 8.3–501 of this title. 17
6774
68- (iii) compensatory pay;
75+ (r) “Wages” means all compensation that is due for employment that is: 18
6976
70- (iv) severance pay;
77+ (1) for an employee[: 19
7178
72- (v) standby pay;
79+ (i) an hourly wage or a salary; 20
7380
74- (vi) a tip or gratuity;
81+ (ii) a commission; 21
7582
76- (vii) holiday or vacation pay; or
83+ (iii) compensatory pay; 22
7784
78- (viii) any other paid leave, including sick leave, that is paid to the
79-employee entirely by the employer], WAGES AS DEFINED IN § 8–101 OF THIS ARTICLE ;
80-or
85+ (iv) severance pay; 23
8186
82- (2) for a self–employed individual[,]:
87+ (v) standby pay; 24
8388
84- (I) self–employment income, as defined in 26 U.S.C. § 1402(b); OR
89+ (vi) a tip or gratuity; 25
8590
86- (II) INCOME, PAY, OR LEAVE LISTED UNDE R ITEM (1) OF THIS
87-SUBSECTION THAT IS WAGES, AS DEFINED IN § 8–101 OF THIS ARTICLE , EARNED
88-FROM A C CORPORATION OR AN S CORPORATION IF THE I NCOME, PAY, OR LEAVE IS
89-PAID TO THE OWNER WH O IS THE SOLE EMPLOY EE OF A C CORPORATION OR AN S
90-CORPORATION .
91+ (vii) holiday or vacation pay; or 26
9192
92-8.3–102.
93+ (viii) any other paid leave, including sick leave, that is paid to the 27
94+employee entirely by the employer], WAGES AS DEFINED IN § 8–101 OF THIS ARTICLE ; 28
95+or 29
96+ SENATE BILL 485 3
9397
94- (a) (1) This subsection does not apply to the disclosure of information to:
95- WES MOORE, Governor Ch. 266
9698
97-– 3 –
98- (i) a public employee in the performance of the public employee’s
99-official duties;
99+ (2) for a self–employed individual[,]: 1
100100
101- (ii) the individual to whom the information relates; [or]
101+ (I) self–employment income, as defined in 26 U.S.C. § 1402(b); OR 2
102102
103- (iii) if an authorized representative has the signed authorization of
104-the individual to whom the information relates, the authorized representative; OR
103+ (II) INCOME, PAY, OR LEAVE LISTED UNDE R ITEM (1) OF THIS 3
104+SUBSECTION THAT IS WAGES, AS DEFINED IN § 8–101 OF THIS ARTICLE , EARNED 4
105+FROM A C CORPORATION OR AN S CORPORATION IF THE I NCOME, PAY, OR LEAVE IS 5
106+PAID TO THE OWNER WH O IS THE SOLE EMPLOYEE OF A C CORPORATION OR AN S 6
107+CORPORATION . 7
105108
106- (IV) EMPLOYERS WHOS E EMPLOYEES HAVE FIL ED CLAIMS WITH
107-THE DEPARTMENT FOR THE PU RPOSE OF CLAIMS ADMI NISTRATION.
109+8.3–102. 8
108110
109- (2) An employee of the Department may not disclose PERSONAL
110-IDENTIFYING information relating to:
111+ (a) (1) This subsection does not apply to the disclosure of information to: 9
111112
112- (I) an individual who has applied for or received benefits under this
113-title;
113+ (i) a public employee in the performance of the public employee’s 10
114+official duties; 11
114115
115- (II) AN INDIVIDUAL WHOSE EMPLOYMENT DATA HAS BEEN
116-SUBMITTED TO THE DEPARTMENT BY THE IND IVIDUAL’S EMPLOYER UNDER THI S
117-TITLE; OR
116+ (ii) the individual to whom the information relates; [or] 12
118117
119- (III) A SELF–EMPLOYED INDIVIDUAL WHO SUBMITTED DATA T O
120-THE DEPARTMENT UNDER THIS TITLE.
118+ (iii) if an authorized representative has the signed authorization of 13
119+the individual to whom the information relates, the authorized representative; OR 14
121120
122- (b) This title preempts the authority of a local jurisdiction to enact a law on or
123-after June 1, 2022, that establishes a paid family and medical leave insurance program for
124-employees of an employer other than the local jurisdiction.
121+ (IV) EMPLOYERS WHOSE EMPL OYEES HAVE FILED CLA IMS WITH 15
122+THE DEPARTMENT FOR THE PU RPOSE OF CLAIMS ADMI NISTRATION. 16
125123
126-8.3–201.
124+ (2) An employee of the Department may not disclose PERSONAL 17
125+IDENTIFYING information relating to: 18
127126
128- (b) (1) A self–employed individual WHO IS A RESIDENT OF THE STATE may
129-elect to participate in the Program by filing a written notice of election with the Secretary
130-in accordance with regulations adopted by the Secretary.
127+ (I) an individual who has applied for or received benefits under this 19
128+title; 20
131129
132-8.3–302.
130+ (II) AN INDIVIDUAL WHOSE EMPLOYMENT DAT A HAS BEEN 21
131+SUBMITTED TO THE DEPARTMENT BY THE IND IVIDUAL’S EMPLOYER UNDER THI S 22
132+TITLE; OR 23
133133
134- The purpose of the Program is to provide temporary benefits to a covered individual
135-who is taking leave from employment:
134+ (III) A SELF–EMPLOYED INDIVIDUAL WHO SUBMITTED DATA T O 24
135+THE DEPARTMENT UNDER THIS TITLE. 25
136136
137- (1) (i) to care for or bond with a child of the covered individual during
138-the first year after the child’s birth; or
137+ (b) This title preempts the authority of a local jurisdiction to enact a law on or 26
138+after June 1, 2022, that establishes a paid family and medical leave insurance program for 27
139+employees of an employer other than the local jurisdiction. 28
139140
140- (ii) during the process through which a child is being placed with the
141-covered individual through foster care, kinship care, or adoption and to care for and bond
142-with the child during the first year after the placement; Ch. 266 2024 LAWS OF MARYLAND
141+8.3–201. 29
142+ 4 SENATE BILL 485
143143
144-– 4 –
145144
146- (2) to care for a family member with a serious health condition;
145+ (b) (1) A self–employed individual WHO IS A RESIDENT OF THE STATE may 1
146+elect to participate in the Program by filing a written notice of election with the Secretary 2
147+in accordance with regulations adopted by the Secretary. 3
147148
148- (3) because the covered individual has a serious health condition that
149-results in the covered individual being unable to perform the functions of the covered
150-individual’s position;
149+8.3–302. 4
151150
152- (4) to care for a service member [who is] FOR WHOM the covered
153-[individual’s] INDIVIDUAL IS next of kin; or
151+ The purpose of the Program is to provide temporary benefits to a covered individual 5
152+who is taking leave from employment: 6
154153
155- (5) because the covered individual has a qualifying exigency arising out of
156-the deployment of a service member who is a family member of the covered individual.
154+ (1) (i) to care for or bond with a child of the covered individual during 7
155+the first year after the child’s birth; or 8
157156
158-8.3–403.
157+ (ii) during the process through which a child is being placed with the 9
158+covered individual through foster care, kinship care, or adoption and to care for and bond 10
159+with the child during the first year after the placement; 11
159160
160- (a) The Secretary, in consultation with other State agencies and relevant
161-stakeholders, shall:
161+ (2) to care for a family member with a serious health condition; 12
162162
163- (1) subject to subsection (b) of this section, adopt regulations necessary to
164-carry out this title;
163+ (3) because the covered individual has a serious health condition that 13
164+results in the covered individual being unable to perform the functions of the covered 14
165+individual’s position; 15
165166
166- (2) establish procedures and forms for filing claims for benefits, including:
167+ (4) to care for a service member [who is] FOR WHOM the covered 16
168+[individual’s] INDIVIDUAL IS next of kin; or 17
167169
168- (i) procedures for notifying an employer within 5 business days after
169-any of the following occurs:
170+ (5) because the covered individual has a qualifying exigency arising out of 18
171+the deployment of a service member who is a family member of the covered individual. 19
170172
171- 1. an employee files an electronic application regarding a
172-claim for benefits;
173+8.3–403. 20
173174
174- 2. an employee’s paper application regarding a claim for
175-benefits is processed;
175+ (a) The Secretary, in consultation with other State agencies and relevant 21
176+stakeholders, shall: 22
176177
177- 3. a determination regarding a claim for benefits is made;
178+ (1) subject to subsection (b) of this section, adopt regulations necessary to 23
179+carry out this title; 24
178180
179- 4. an appeal for a determination regarding a claim for
180-benefits is filed; or
181+ (2) establish procedures and forms for filing claims for benefits, including: 25
181182
182- 5. a change is made to a determination regarding a claim for
183-benefits; and
183+ (i) procedures for notifying an employer within 5 business days after 26
184+any of the following occurs: 27
184185
185- (ii) notices of elections by self–employed individuals for benefits
186-under § 8.3–201 of this title;
186+ 1. an employee files an electronic application regarding a 28
187+claim for benefits; 29
187188
188- (3) ESTABLISH PROCEDURES AND FORMS FOR ELECTR ONIC FILING
189-OF REPORTS, NOTICES, AND OTHER REQUIRED D OCUMENTS BY EMPLOYER S;
190- WES MOORE, Governor Ch. 266
189+ 2. an employee’s paper application regarding a claim for 30
190+benefits is processed; 31
191+ SENATE BILL 485 5
191192
192-– 5 –
193- [(3)] (4) use information–sharing and integration technology to facilitate
194-the disclosure of relevant information or records needed for the administration of this title;
195-and
196193
197- [(4)] (5) subject to subsection (d) of this section, carry out a public
198-education program.
194+ 3. a determination regarding a claim for benefits is made; 1
199195
200- (d) (1) The Secretary may use a portion of the funds paid under § 8.3–601 of
201-this title or other available funding to:
196+ 4. an appeal for a determination regarding a claim for 2
197+benefits is filed; or 3
202198
203- (I) pay for and carry out the requirements under subsection [(a)(4)]
204-(A)(5) of this section; OR
199+ 5. a change is made to a determination regarding a claim for 4
200+benefits; and 5
205201
206- (II) ISSUE GRANTS.
202+ (ii) notices of elections by self–employed individuals for benefits 6
203+under § 8.3–201 of this title; 7
207204
208- (2) Materials used in the public education program required under
209-subsection [(a)(4)] (A)(5) of this section shall be made available in English and Spanish.
205+ (3) ESTABLISH PROCEDURES AND FORMS FOR ELECTR ONIC FILING 8
206+OF REPORTS, NOTICES, AND OTHER REQUIRED D OCUMENTS BY EMPLOYER S; 9
210207
211- (E) THE SECRETARY MAY USE A P ORTION OF THE FUNDS PAID UNDER §
212-8.3–601 OF THIS TITLE OR OTH ER AVAILABLE FUNDING TO AWARD GRANTS TO
213-FACILITATE COMMUNITY PARTNERSHIPS IN AMOU NTS THAT, IN THE AGGREGATE ,
214-DO NOT EXCEED THE AM OUNT APPROPRIATED IN THE DEPARTMENT ’S ANNUAL
215-BUDGET FOR THIS PURP OSE.
208+ [(3)] (4) use information–sharing and integration technology to facilitate 10
209+the disclosure of relevant information or records needed for the administration of this title; 11
210+and 12
216211
217-8.3–406.
212+ [(4)] (5) subject to subsection (d) of this section, carry out a public 13
213+education program. 14
218214
219- (a) On or before [September 1] NOVEMBER 15 each year, the Secretary shall
220-submit to the Governor and, in accordance with § 2–1257 of the State Government Article,
221-the General Assembly an annual report on the administration and operation of the Program
222-during the immediately preceding fiscal year.
215+ (d) (1) The Secretary may use a portion of the funds paid under § 8.3–601 of 15
216+this title or other available funding to: 16
223217
224- (b) The annual report shall include information regarding:
218+ (I) pay for and carry out the requirements under subsection [(a)(4)] 17
219+(A)(5) of this section; OR 18
225220
226- (5) public outreach and technical assistance efforts, INCLUDING ANY
227-GRANTS ISSUED UNDER § 8.3–403(D)(1)(II) OF THIS SUBTITLE ;
221+ (II) ISSUE GRANTS. 19
228222
229-8.3–503.
223+ (2) Materials used in the public education program required under 20
224+subsection [(a)(4)] (A)(5) of this section shall be made available in English and Spanish. 21
230225
231- (a) The Fund consists of:
226+ (E) THE SECRETARY MAY USE A P ORTION OF THE FUNDS PAID UNDER § 22
227+8.3–601 OF THIS TITLE OR OTH ER AVAILABLE FUNDING TO AWARD GRANTS TO 23
228+FACILITATE COMMUNITY PARTNERSHIPS IN AMOU NTS THAT, IN THE AGGREGATE , 24
229+DO NOT EXCEED THE AMOUNT AP PROPRIATED IN THE DEPARTMENT ’S ANNUAL 25
230+BUDGET FOR THIS PURP OSE. 26
232231
233- (1) employee contributions;
232+8.3–406. 27
234233
235- (2) self–employed individual contributions;
234+ (a) On or before [September 1] NOVEMBER 15 each year, the Secretary shall 28
235+submit to the Governor and, in accordance with § 2–1257 of the State Government Article, 29
236+the General Assembly an annual report on the administration and operation of the Program 30
237+during the immediately preceding fiscal year. 31
236238
237- (3) employer contributions; Ch. 266 2024 LAWS OF MARYLAND
239+ (b) The annual report shall include information regarding: 32 6 SENATE BILL 485
238240
239-– 6 –
240241
241- (4) APPLICATION AND APPL ICATION RENEWAL FEES PAID AS
242-REQUIRED IN REGULATI ONS ADOPTED UNDER § 8.3–705(B)(3) OF THIS TITLE;
243242
244- [(4)] (5) money paid to the Fund for the purpose of reimbursing the
245-Secretary under § 8.3–902 of this title for benefits paid in error;
243+ (5) public outreach and technical assistance efforts, INCLUDING ANY 1
244+GRANTS ISSUED UNDER § 8.3–403(D)(1)(II) OF THIS SUBTITLE ; 2
246245
247- (6) MONEY COLLECTED UNDE R:
246+8.3–503. 3
248247
249- (I) § 8.3–903(1) OF THIS TITLE FOR AS SESSED CONTRIBUTIONS
250-AND INTEREST FOR AN EMPLOYER’S OR A SELF–EMPLOYED INDIVIDUAL ’S FAILURE
251-TO PAY CONTRIBUTIONS ; AND
248+ (a) The Fund consists of: 4
252249
253- (II) § 8.3–906(A)(1)(III) OF THIS TITLE FOR THE DEPARTMENT ’S
254-COSTS OF AN APPEAL A GAINST AN EMPLOYER O R INSURER;
250+ (1) employee contributions; 5
255251
256- [(5)] (7) interest earned on money in the Fund; and
252+ (2) self–employed individual contributions; 6
257253
258- [(6)] (8) money received for the Fund from any other source.
254+ (3) employer contributions; 7
259255
260- (b) Money in the Fund may be commingled.
256+ (4) APPLICATION AND APPL ICATION RENEWAL FEES PAID AS 8
257+REQUIRED IN REGULATI ONS ADOPTED UNDER § 8.3–705(B)(3) OF THIS TITLE; 9
261258
262- (c) (1) [The] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE
263-Fund may be used only for the purposes of this title.
259+ [(4)] (5) money paid to the Fund for the purpose of reimbursing the 10
260+Secretary under § 8.3–902 of this title for benefits paid in error; 11
264261
265- (2) FEES PAID INTO THE FUND UNDER SUBSECTION (A)(4) OF THIS
266-SECTION MAY BE USED ONLY FOR ADMINISTRAT IVE PURPOSES OF THE PROGRAM.
262+ (6) MONEY COLLECTED UNDE R: 12
267263
268-8.3–601.
264+ (I) § 8.3–903(1) OF THIS TITLE FOR AS SESSED CONTRIBUTIONS 13
265+AND INTEREST FOR AN EMPLOYER’S OR A SELF–EMPLOYED INDIVIDUAL ’S FAILURE 14
266+TO PAY CONTRIBUTIONS ; AND 15
269267
270- (a) (1) Beginning [October 1, 2024] JULY 1, 2025, each employee of an
271-employer, each employer with 15 or more employees, and each self–employed individual
272-participating in the Program shall contribute to the Fund.
268+ (II) § 8.3–906(A)(1)(III) OF THIS TITLE FOR TH E DEPARTMENT ’S 16
269+COSTS OF AN APPEAL A GAINST AN EMPLOYER OR INSURER ; 17
273270
274- (b) (1) Subject to subsection (a)(2) of this section, on or before [October 1, 2023]
275-FEBRUARY 1, 2024 2025, the Secretary shall set the total rate of contribution based on
276-available cost analyses of the Program.
271+ [(5)] (7) interest earned on money in the Fund; and 18
277272
278- (2) The rate set under paragraph (1) of this subsection shall be in effect for
279-the period from [October 1, 2024] JULY 1, 2025, to June 30, 2026, both inclusive.
273+ [(6)] (8) money received for the Fund from any other source. 19
280274
281- (c) (1) On or before November 15 each year, beginning in [2025] 2026, the
282-Secretary shall conduct a cost analysis of the Program that is focused on the cost of WES MOORE, Governor Ch. 266
275+ (b) Money in the Fund may be commingled. 20
283276
284-– 7 –
285-maintaining solvency and paying benefits to covered individuals that will be used to
286-determine the appropriate total rate of contribution to the Fund.
277+ (c) (1) [The] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 21
278+Fund may be used only for the purposes of this title. 22
287279
288-8.3–701.
280+ (2) FEES PAID INTO THE FUND UNDER SUBSECTION (A)(4) OF THIS 23
281+SECTION MAY BE USED ONLY FOR ADMINISTRAT IVE PURPOSES OF THE PROGRAM. 24
289282
290- (a) (1) Subject to paragraph (2) of this subsection, beginning [January] JULY
291-1, 2026, a covered individual taking leave from employment may submit a claim for
292-benefits:
283+8.3–601. 25
293284
294- (i) 1. to care for a newborn child of the covered individual during
295-the first year after the child’s birth; or
285+ (a) (1) Beginning [October 1, 2024] JULY 1, 2025, each employee of an 26
286+employer, each employer with 15 or more employees, and each self–employed individual 27
287+participating in the Program shall contribute to the Fund. 28 SENATE BILL 485 7
296288
297- 2. because a child is being placed for adoption, foster care, or
298-kinship care with the covered individual or to care for or bond with the child during the
299-first year after the placement;
300289
301- (ii) to care for a family member with a serious health condition;
302290
303- (iii) to attend to a serious health condition that results in the covered
304-individual being unable to perform the functions of the covered individual’s position;
291+ (b) (1) Subject to subsection (a)(2) of this section, on or before [October 1, 2023] 1
292+FEBRUARY 1, 2024 2025, the Secretary shall set the total rate of contribution based on 2
293+available cost analyses of the Program. 3
305294
306- (iv) to care for a service member with a serious health condition
307-resulting from military service [who is] FOR WHOM the covered [individual’s] INDIVIDUAL
308-IS next of kin; or
295+ (2) The rate set under paragraph (1) of this subsection shall be in effect for 4
296+the period from [October 1, 2024] JULY 1, 2025, to June 30, 2026, both inclusive. 5
309297
310- (v) to attend to a qualifying exigency arising out of the deployment
311-of a service member who is a family member of the covered individual.
298+ (c) (1) On or before November 15 each year, beginning in [2025] 2026, the 6
299+Secretary shall conduct a cost analysis of the Program that is focused on the cost of 7
300+maintaining solvency and paying benefits to covered individuals that will be used to 8
301+determine the appropriate total rate of contribution to the Fund. 9
312302
313-8.3–703.
303+8.3–701. 10
314304
315- (a) For the purposes of this section:
305+ (a) (1) Subject to paragraph (2) of this subsection, beginning [January] JULY 11
306+1, 2026, a covered individual taking leave from employment may submit a claim for 12
307+benefits: 13
316308
317- (1) the covered individual’s average weekly wage shall be calculated as the
318-total wages received by the covered individual [over the last 680 hours for which the covered
319-individual was paid divided by the number of weeks worked] IN THE HIGHEST OF TH E
320-PREVIOUS FOUR COMPLE TED CALENDAR QUARTER S FOR WH ICH QUARTERLY
321-REPORTS HAVE BEEN RE QUIRED, DIVIDED BY 13; and
309+ (i) 1. to care for a newborn child of the covered individual during 14
310+the first year after the child’s birth; or 15
322311
323- (2) the State average weekly wage shall be the wage calculated under §
324-9–603 of this article.
312+ 2. because a child is being placed for adoption, foster care, or 16
313+kinship care with the covered individual or to care for or bond with the child during the 17
314+first year after the placement; 18
325315
326- (b) (3) The weekly benefit amount payable under paragraph (1) of this
327-subsection:
316+ (ii) to care for a family member with a serious health condition; 19
328317
329- (i) shall be at least $50; and
330- Ch. 266 2024 LAWS OF MARYLAND
318+ (iii) to attend to a serious health condition that results in the covered 20
319+individual being unable to perform the functions of the covered individual’s position; 21
331320
332-– 8 –
333- (ii) may not exceed:
321+ (iv) to care for a service member with a serious health condition 22
322+resulting from military service [who is] FOR WHOM the covered [individual’s] INDIVIDUAL 23
323+IS next of kin; or 24
334324
335- 1. for the [12–month] 6–MONTH period beginning [January]
336-JULY 1, 2026, $1,000; and
325+ (v) to attend to a qualifying exigency arising out of the deployment 25
326+of a service member who is a family member of the covered individual. 26
337327
338- 2. for the 12–month period beginning January 1, 2027, and
339-each subsequent 12–month period, the amount determined and announced by the Secretary
340-under paragraph (4) of this subsection.
328+8.3–703. 27
341329
342-8.3–705.
330+ (a) For the purposes of this section: 28
343331
344- (a) (1) An employer AUTHORIZED BY THE SECRETARY may satisfy the
345-requirements of this title through a private employer plan consisting of employer–provided
346-benefits[,] OR insurance through an insurer that holds a certificate of authority issued by
347-the Maryland Insurance Commissioner[, or a combination of both] if the private employer
348-plan is [offered] PROVIDED to all of the employer’s eligible employees and meets or exceeds
349-the rights, protections, and benefits provided to a covered employee under this title.
332+ (1) the covered individual’s average weekly wage shall be calculated as the 29
333+total wages received by the covered individual [over the last 680 hours for which the covered 30
334+individual was paid divided by the number of weeks worked] IN THE HIGHEST OF TH E 31 8 SENATE BILL 485
350335
351- (2) (i) To determine the benefit amount under a private employer plan,
352-the weekly benefit amount shall be based on the average weekly wage earned from the
353-employer sponsoring the private employer plan.
354336
355- (ii) Notwithstanding subparagraph (i) of this paragraph, if an
356-individual has worked less than 680 hours for the employer sponsoring the private
357-employer plan, the weekly benefit amount shall be based on the average weekly wage under
358-§ 8.3–703(a) of this subtitle.
337+PREVIOUS FOUR COMPLETED CALEN DAR QUARTERS FOR WHICH QUARTERLY 1
338+REPORTS HAVE BEEN RE QUIRED, DIVIDED BY 13; and 2
359339
360- (iii) This subsection may not be construed to prevent a private
361-employer plan from providing a benefit that is greater than that provided in § 8.3–703(a)
362-of this subtitle.
340+ (2) the State average weekly wage shall be the wage calculated under § 3
341+9–603 of this article. 4
363342
364- (b) (1) A private employer plan shall be filed with the Department for
365-approval.
343+ (b) (3) The weekly benefit amount payable under paragrap h (1) of this 5
344+subsection: 6
366345
367- (2) (I) THE SECRETARY SHALL ESTAB LISH REASONABLE CRIT ERIA
368-FOR DETERMINING WHIC H EMPLOYERS ARE AUTH ORIZED TO MEET THE
369-REQUIREMENTS OF THIS TITLE THROUGH EMPLOY ER–PROVIDED BENEFITS .
346+ (i) shall be at least $50; and 7
370347
371- (II) THE CRITERIA ESTABLISHED UNDER SU BPARAGRAPH (I) OF
372-THIS PARAGRAPH MAY I NCLUDE THE EMPLOYER ’S:
348+ (ii) may not exceed: 8
373349
374- 1. NUMBER OF EMPLOYEES ;
350+ 1. for the [12–month] 6–MONTH period beginning [January] 9
351+JULY 1, 2026, $1,000; and 10
375352
376- 2. CAPITALIZATION ;
377- WES MOORE, Governor Ch. 266
353+ 2. for the 12–month period beginning January 1, 2027, and 11
354+each subsequent 12–month period, the amount determined and announced by the Secretary 12
355+under paragraph (4) of this subsection. 13
378356
379-– 9 –
380- 3. BONDEDNESS ; AND
357+8.3–705. 14
381358
382- 4. STATUS AS A GOVERNME NT EMPLOYER .
359+ (a) (1) An employer AUTHORIZED BY THE SECRETARY may satisfy the 15
360+requirements of this title through a private employer plan consisting of employer–provided 16
361+benefits[,] OR insurance through an insurer that holds a certificate of authority issued by 17
362+the Maryland Insurance Commissioner[, or a combination of both] if the private employer 18
363+plan is [offered] PROVIDED to all of the employer’s eligible employees and meets or exceeds 19
364+the rights, protections, and benefits provided to a covered employee under this title. 20
383365
384- (3) THE DEPARTMENT MAY ADOPT REGULATIONS THAT EST ABLISH
385-REASONABLE APPLICATI ON AND APPLICATION R ENEWAL FEES FOR PRIVATE
386-EMPLOYER PLANS UNDER THIS SECTION .
366+ (2) (i) To determine the benefit amount under a private employer plan, 21
367+the weekly benefit amount shall be based on the average weekly wage earned from the 22
368+employer sponsoring the private employer plan. 23
387369
388- (c) An employer that provides covered employees with a private employer plan
389-and an employee that is covered by a private employer plan are exempt from the
390-contributions required under Subtitle 6 of this title.
370+ (ii) Notwithstanding subparagraph (i) of this paragraph, if an 24
371+individual has worked less than 680 hours for the employer sponsoring the private 25
372+employer plan, the weekly benefit amount shall be based on the average weekly wage under 26
373+§ 8.3–703(a) of this subtitle. 27
391374
392- (d) An employer that provides a private employer plan may not deduct from an
393-employee more than [the maximum] 50% OF THE contribution amount set by the
394-Department UNDER § 8.3–601(B) OF THIS TITLE.
375+ (iii) This subsection may not be construed to prevent a private 28
376+employer plan from providing a benefit that is greater than that provided in § 8.3–703(a) 29
377+of this subtitle. 30
395378
396-8.3–903.
379+ (b) (1) A private employer plan shall be filed with the Department for 31
380+approval. 32
381+ SENATE BILL 485 9
397382
398- If an employer OR A SELF–EMPLOYED INDIVIDUAL fails to pay the contributions
399-due to the Fund, the Secretary may, in accordance with § 8.3–404 of this title:
400383
401- (1) assess the amount of contributions and interest due;
384+ (2) (I) THE SECRETARY SHALL ESTAB LISH REASONABLE CRIT ERIA 1
385+FOR DETERMINING WHIC H EMPLOYERS ARE AUTH ORIZED TO MEET THE 2
386+REQUIREMENTS OF THIS TITLE THROUGH EMPLOYER–PROVIDED BENEFITS . 3
402387
403- (2) make an additional assessment in an amount not to exceed two times
404-the contributions withheld, as a penalty for failure to pay the contributions due; and
388+ (II) THE CRITERIA ESTABLIS HED UNDER SUBPARAGRA PH (I) OF 4
389+THIS PARAGRAPH MAY I NCLUDE THE EMPLOYER ’S: 5
405390
406- (3) order an audit of the employer for the immediately following fiscal year
407-to investigate and determine compliance with this title and Titles 3, 8, and 9 of this article.
391+ 1. NUMBER OF EMPLOYEES ; 6
408392
409-8.3–905.
393+ 2. CAPITALIZATION ; 7
410394
411- (a) If an employee OR THE DEPARTMENT believes that an employer, A
412-SELF–EMPLOYED INDIVIDUAL , OR AN INSURER has violated this title OR
413-REGULATIONS ADOPTED BY THE DEPARTMENT UNDER THIS TITLE, the employee OR
414-THE DEPARTMENT may file a written complaint with the [Secretary] SECRETARY’S
415-DESIGNEE.
395+ 3. BONDEDNESS ; AND 8
416396
417- (b) (1) Within 90 days after the receipt of a written complaint, the [Secretary]
418-SECRETARY’S DESIGNEE shall conduct an investigation and attempt to resolve the issue
419-informally through mediation.
397+ 4. STATUS AS A GOVERNME NT EMPLOYER . 9
420398
421- (2) (i) If the [Secretary] SECRETARY’S DESIGNEE is unable to resolve
422-an issue through mediation during the period stated in paragraph (1) of this subsection and
423-the [Secretary] SECRETARY’S DESIGNEE determines that an employer has violated this
424-subtitle, the [Secretary] SECRETARY’S DESIGNEE shall issue an order. Ch. 266 2024 LAWS OF MARYLAND
399+ (3) THE DEPARTMENT MAY ADOPT REGULATIONS THAT EST ABLISH 10
400+REASONABLE APPLICATI ON AND APPLICATION R ENEWAL FEES FOR PRIVATE 11
401+EMPLOYER PLANS UNDER THIS SECTION . 12
425402
426-– 10 –
403+ (c) An employer that provides covered employees with a private employer plan 13
404+and an employee that is covered by a private employer plan are exempt from the 14
405+contributions required under Subtitle 6 of this title. 15
427406
428- (ii) An order issued under subparagraph (i) of this paragraph:
407+ (d) An employer that provides a private employer plan may not deduct from an 16
408+employee more than [the maximum] 50% OF THE contribution amount set by the 17
409+Department UNDER § 8.3–601(B) OF THIS TITLE. 18
429410
430- 1. shall describe the violation;
411+8.3–903. 19
431412
432- 2. shall direct, if appropriate, the recovery of lost wages and
433-damages equal to the amount of wages, salary, employment benefits, or other compensation
434-denied or lost, and any actual economic damages;
413+ If an employer OR A SELF–EMPLOYED INDIVIDUAL fails to pay the contributions 20
414+due to the Fund, the Secretary may, in accordance with § 8.3–404 of this title: 21
435415
436- 3. may, in the Secretary’s discretion, seek reinstatement or
437-the hiring of employees with or without back pay; and
416+ (1) assess the amount of contributions and interest due; 22
438417
439- 4. may, in the [Commissioner’s] discretion OF THE
440-SECRETARY’S DESIGNEE, assess a civil penalty of up to $1,000 for each employee for
441-whom the employer is not in compliance with this title.
418+ (2) make an additional assessment in an amount not to exceed two times 23
419+the contributions withheld, as a penalty for failure to pay the contributions due; and 24
442420
443- (3) The actions taken under paragraphs (1) and (2) of this subsection are
444-subject to the hearing and notice requirements of Title 10, Subtitle 2 of the State
445-Government Article.
421+ (3) order an audit of the employer for the immediately following fiscal year 25
422+to investigate and determine compliance with this title and Titles 3, 8, and 9 of this article. 26
446423
447-8.3–906.
424+8.3–905. 27
448425
449- (a) (1) (i) The Secretary shall establish a system for appeals by covered
450-individuals regarding determinations of benefit amounts, benefit durations, and denials of
451-benefits under this title.
426+ (a) If an employee OR THE DEPARTMENT believes that an employer, A 28
427+SELF–EMPLOYED INDIVIDUAL , OR AN INSURER has violated this title OR 29
428+REGULATIONS ADOPTED BY THE DEPARTMENT UNDER THIS TITLE, the employee OR 30 10 SENATE BILL 485
452429
453- (ii) A covered individual must file an appeal under subparagraph (i)
454-of this paragraph within 30 days after the determination is made or benefits are denied,
455-unless good cause can be shown for the delay.
456430
457- (III) IF A COVERED INDIVIDU AL PREVAILS IN AN AP PEAL OF AN
458-ADVERSE DECISION OF AN EMPLOYER OR INSUR ER, THE DEPARTMENT MAY ASSESS
459-THE DEPARTMENT ’S COSTS OF THE APPEAL AGAINST THE EMPLOYER OR INSURER.
431+THE DEPARTMENT may file a written complaint with the [Secretary] SECRETARY’S 1
432+DESIGNEE. 2
460433
461- (2) The Secretary may use the procedures under § 8–806 of this article for
462-the system required under paragraph (1) of this subsection.
434+ (b) (1) Within 90 days after the receipt of a written complaint, the [Secretary] 3
435+SECRETARY’S DESIGNEE shall conduct an investigation and attempt to resolve the issue 4
436+informally through mediation. 5
463437
464- (b) Judicial review of any decision with respect to benefits under this title shall
465-be allowed in a court of competent jurisdiction after an aggrieved party has exhausted all
466-administrative remedies established by the Secretary under this title.
438+ (2) (i) If the [Secretary] SECRETARY’S DESIGNEE is unable to resolve 6
439+an issue through mediation during the period stated in paragraph (1) of this subsection and 7
440+the [Secretary] SECRETARY’S DESIGNEE determines that an employer has violated this 8
441+subtitle, the [Secretary] SECRETARY’S DESIGNEE shall issue an order. 9
467442
468- (c) The Secretary shall implement procedures to ensure confidentiality of all
469-information related to any claims filed or appeals taken to the maximum extent allowed by
470-law.
471- WES MOORE, Governor Ch. 266
443+ (ii) An order issued under subparagraph (i) of this paragraph: 10
472444
473-– 11 –
474- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
475-October 1, 2024.
445+ 1. shall describe the violation; 11
476446
477-Approved by the Governor, April 25, 2024.
447+ 2. shall direct, if appropriate, the recovery of lost wages and 12
448+damages equal to the amount of wages, salary, employment benefits, or other compensation 13
449+denied or lost, and any actual economic damages; 14
450+
451+ 3. may, in the Secretary’s discretion, seek reinstatement or 15
452+the hiring of employees with or without back pay; and 16
453+
454+ 4. may, in the [Commissioner’s] discretion OF THE 17
455+SECRETARY’S DESIGNEE, assess a civil penalty of up to $1,000 for each employee for 18
456+whom the employer is not in compliance with this title. 19
457+
458+ (3) The actions taken under paragraphs (1) and (2) of this subsection are 20
459+subject to the hearing and notice requirements of Title 10, Subtitle 2 of the State 21
460+Government Article. 22
461+
462+8.3–906. 23
463+
464+ (a) (1) (i) The Secretary shall establish a system for appeals by covered 24
465+individuals regarding determinations of benefit amounts, benefit durations, and denials of 25
466+benefits under this title. 26
467+
468+ (ii) A covered individual must file an appeal under subparagraph (i) 27
469+of this paragraph within 30 days after the determination is made or benefits are denied, 28
470+unless good cause can be shown for the delay. 29
471+
472+ (III) IF A COVERED INDIVIDU AL PREVAILS IN AN AP PEAL OF AN 30
473+ADVERSE DECISION OF AN EMPLOYER OR INSUR ER, THE DEPARTMENT MAY ASSESS 31
474+THE DEPARTMENT ’S COSTS OF THE APPEA L AGAINST THE EMPLOY ER OR INSURER. 32
475+ SENATE BILL 485 11
476+
477+
478+ (2) The Secretary may use the procedures under § 8–806 of this article for 1
479+the system required under paragraph (1) of this subsection. 2
480+
481+ (b) Judicial review of any decision with respect to benefits under this title shall 3
482+be allowed in a court of competent jurisdiction after an aggrieved party has exhausted all 4
483+administrative remedies established by the Secretary under this title. 5
484+
485+ (c) The Secretary shall implement procedures to ensure confidentiality of all 6
486+information related to any claims filed or appeals taken to the maximum extent allowed by 7
487+law. 8
488+
489+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 9
490+October 1, 2024. 10
491+
492+
493+
494+
495+Approved:
496+________________________________________________________________________________
497+ Governor.
498+________________________________________________________________________________
499+ President of the Senate.
500+________________________________________________________________________________
501+ Speaker of the House of Delegates.