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.
*hb0102*
HOUSE BILL 102
K3 5lr0378
(PRE–FILED) CF SB 225
By: Chair, Economic Matters Committee (By Request – Departmental – Labor)
Requested: October 12, 2024
Introduced and read first time: January 8, 2025
Assigned to: Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 12, 2025
CHAPTER ______
AN ACT concerning 1
Family and Medical Leave Insurance Program – Application Year and 2
Participation of Self–Employed Individuals Revisions 3
FOR the purpose of defining “anchor date” to establish certain reference points for the 4
calculation of a certain covered employee’s average weekly wage and eligibility for 5
increases in weekly benefits under the Family Medical Leave and Insurance 6
Program; requiring the Maryland Department of Labor to adopt regulations 7
establishing an optional self–employed enrollment program governing the 8
participation of self–employed individuals in the Family and Medical Leave 9
Insurance Program; repealing certain requirements related to the payment of 10
contributions to the Program by participating self–employed individuals; altering 11
certain dates related to annual reporting and the implementation of the Program; 12
excluding participating self–employed individuals from certain provisions of law 13
governing the payment of benefits under the Program; altering the definition of 14
“application year” for purposes of the Program; altering the frequency with which 15
subsequent payments are to be made under the Program; authorizing the Secretary 16
to announce, rather than notify each employer of, a certain increase to the maximum 17
weekly benefit amount; prohibiting the Department from requiring certain 18
employers to escrow employer and employee contributions before the issuance of 19
Program benefits by the Department; and generally relating to the Family and 20
Medical Leave Insurance Program. 21
BY repealing and reenacting, without amendments, 22
Article – Labor and Employment 23 2 HOUSE BILL 102
Section 8.3–101(a), (d), and (e) and 8.3–703(b)(3) 1
Annotated Code of Maryland 2
(2016 Replacement Volume and 2024 Supplement) 3
BY adding to 4
Article – Labor and Employment 5
Section 8.3–101(a–1) 6
Annotated Code of Maryland 7
(2016 Replacement Volume and 2024 Supplement) 8
BY repealing and reenacting, with amendments, 9
Article – Labor and Employment 10
Section 8.3–101(b) and (d), 8.3–201, 8.3–406(a), 8.3–601, 8.3–701(a), and 8.3–703(a) 11
and (b)(1) and (2), (b), (c), (d)(5), (e)(2), and (f) 12
Annotated Code of Maryland 13
(2016 Replacement Volume and 2024 Supplement) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Labor and Employment 17
8.3–101. 18
(a) In this title the following words have the meanings indicated. 19
(A–1) “ANCHOR DATE ” MEANS THE EARLIER OF THE DATE ON WHICH : 20
(1) AN APPLICATION FOR B ENEFITS IS COMPLETE IN ACCORDAN CE 21
WITH § 8.3–701(B)(2) OF THIS TITLE; OR 22
(2) LEAVE BEGINS FOR A C OVERED INDIVIDUAL FO R WHICH BENEFITS 23
MAY BE PAID UNDER TH IS TITLE. 24
(b) “Application year” means the 12–month period beginning on the Sunday of 25
the calendar week [for which benefits are approved] IN WHICH LEAVE UNDER THIS TITLE 26
BEGINS. 27
(d) “Covered employee” means an employee who has worked at least 680 hours 28
performing services under employment located in the State over the four most recently 29
completed calendar quarters for which quarterly reports have been required immediately 30
preceding the date on which leave is to begin ANCHOR DATE . 31
(e) “Covered individual” means a covered employee or a self–employed individual 32
who elects to participate in the Program under § 8.3–201 of this title. 33
HOUSE BILL 102 3
8.3–201. 1
(a) In this section, “self–employed individual” includes an individual [that] WHO: 2
(1) is the sole owner of a sole proprietorship, limited liability company, C 3
corporation, or S corporation; and 4
(2) is the only individual employed by the sole proprietorship, limited 5
liability company, C corporation, or S corporation. 6
(b) [(1)] A self–employed individual who is a resident of the State may elect to 7
participate in the Program [by filing a written notice of election with the Secretary] in 8
accordance with regulations adopted by the Secretary UNDER SUBSECTION (C) OF THIS 9
SECTION. 10
[(2) An election made under paragraph (1) of this subsection becomes 11
effective on the date the written notice is filed. 12
(c) (1) If a self–employed individual elects to participate in the Program under 13
subsection (b) of this section, the individual shall participate for an initial period of not less 14
than 3 years. 15
(2) Once the initial participation period expires, the self–employed 16
individual may renew participation in the Program for a period of not less than 1 year. 17
(3) If the self–employed individual does not wish to renew participation in 18
the Program under paragraph (2) of this subsection, within 30 days before the participation 19
period expires, the self–employed individual shall notify the Secretary in writing of the 20
self–employed individual’s withdrawal from the Program. 21
(d) During the period a self–employed individual participates in the Program, the 22
self–employed individual shall pay the contribution required under § 8.3–601 of this title.] 23
(C) ON OR BEFORE JULY 1, 2027 2028, THE SECRETARY SHALL ADOPT 24
REGULATIONS THAT EST ABLISH AN OPTIONAL S ELF–EMPLOYED ENROLLMENT 25
PROGRAM AND INCLUDE : 26
(1) CONTRIBUTION AMOUNTS ; 27
(2) BENEFIT AMOUNTS ; AND 28
(3) ENROLLMENT PROCEDURE S. 29
8.3–406. 30
4 HOUSE BILL 102
(a) On or before [November 15] OCTOBER 1 each year, the Secretary shall 1
submit to the Governor and, in accordance with § 2–1257 of the State Government Article, 2
the General Assembly an annual report on the administration and operation of the Program 3
during the immediately preceding fiscal year. 4
8.3–601. 5
(a) (1) (I) Beginning July 1, 2025 JANUARY 1, 2027, each employee of an 6
employer[,] AND each employer with 15 or more employees[, and each self–employed 7
individual participating in the Program] shall contribute to the Fund. 8
[(2)] (II) The total rate of contribution established under this section FOR 9
EMPLOYEES AND EMPLOY ERS DESCRIBED IN SUB PARAGRAPH (I) OF THIS 10
PARAGRAPH : 11
[(i)] 1. may not exceed 1.2% of an employee’s wages; and 12
[(ii)] 2. shall be applied to all wages up to and including the Social 13
Security wage base. 14
(2) EACH SELF–EMPLOYED INDIVIDUAL PARTICIPATING IN THE 15
PROGRAM SHALL CONTRIB UTE TO THE FUND IN ACCORDANCE WI TH REGULATIONS 16
ADOPTED UNDER § 8.3–201(C) OF THIS TITLE. 17
(b) (1) Subject to subsection [(a)(2)] (A)(1)(II) of this section, on or before 18
February 1, 2025 MAY 1, 2026, the Secretary shall set the total rate of contribution based 19
on available cost analyses of the Program. 20
(2) The rate set under paragraph (1) of this subsection shall be in effect for 21
the period from July 1, 2025 JANUARY 1, 2027, to June 30, 2026 DECEMBER 31, 2027, 22
both inclusive. 23
(c) (1) On or before November 15 OCTOBER 1 each year, beginning in 2026 24
2027, the Secretary shall conduct a cost analysis of the Program that is focused on the cost 25
of maintaining solvency and paying benefits to covered individuals that will be used to 26
determine the appropriate total rate of contribution to the Fund. 27
(2) On or before November 15 OCTOBER 1 each year, the Secretary shall 28
report the results of the cost analysis to the Senate Finance Committee, the House 29
Economic Matters Committee, and the Joint Committee on Administrative, Executive, and 30
Legislative Review in accordance with § 2–1257 of the State Government Article. 31
(d) (1) Subject to paragraph (2) of this subsection and subsection [(a)(2)] 32
(A)(1)(II) of this section, on or before February NOVEMBER 1 each year, beginning in 2026 33 HOUSE BILL 102 5
2027, the Secretary shall set the total rate of contribution that will be in effect for the 1
12–month period beginning on the immediately following July JANUARY 1. 2
(2) The rate set under paragraph (1) of this subsection shall be based on 3
the cost analysis required under subsection (c) of this section. 4
(e) (1) (i) Except as otherwise provided in this section, each employer of 15 5
or more employees shall contribute an amount equal to 50% of the total rate of contribution 6
for each employee. 7
(ii) Except as otherwise provided in this section, each employee of an 8
employer shall contribute an amount equal to 50% of the total rate of contribution. 9
(2) (i) Except as provided in subparagraph (ii) of this paragraph, the 10
employer of the employee shall deduct the employee’s required contribution from the wages 11
of the employee. 12
(ii) 1. An employer may elect to pay all or a portion of the 13
required employee contributions in whole or in part. 14
2. If the employer of an employee elects to pay a portion of 15
the employee’s required contribution, the employer: 16
A. may deduct an amount that is less than 50% of the rate of 17
contribution required from the wages of the employee; and 18
B. shall notify employees of the rate of contribution set for 19
employees under subsection (d)(1) of this section and the portion of that amount that the 20
employer is electing to pay. 21
[(f) Each self–employed individual participating in the Program shall: 22
(1) pay contributions during each year that the self–employed individual 23
participates in the Program; and 24
(2) contribute an amount equal to the total rate of contribution set under 25
subsection (d) of this section.] 26
[(g)] (F) (1) The Maryland Department of Health shall reimburse each: 27
(i) community provider that is required to be licensed or certified 28
under Title 7 of the Health – General Article for 100% of the employer contribution required 29
under subsection (e) of this section for employees who manage or provide services under 30
Title 7 of the Health – General Article; 31
(ii) community provider that is required to be licensed or certified 32
under Title 7.5 of the Health – General Article for a percentage of the employer contribution 33 6 HOUSE BILL 102
required under subsection (e) of this section for employees who manage or provide services 1
under Title 7.5 of the Health – General Article that is equal to the percentage of revenue 2
that is attributable to federal and State Medicaid funding and any other State funding 3
received by the community provider for the services during the period covered by the 4
reimbursement; or 5
(iii) provider, as defined in § 16–201.4 of the Health – General Article, 6
for a percentage of the employer contribution required under subsection (e) of this section 7
for employees who manage or provide services described in § 16 –201.4(a) of the 8
Health – General Article that is equal to the percentage of revenue attributable to federal 9
and State Medicaid funding and any other State funding received by the provider for the 10
services during the period covered by the reimbursement. 11
(2) The Maryland Department of Health shall make the reimbursements 12
required under paragraph (1) of this subsection at least quarterly. 13
(3) To receive reimbursement under paragraph (1) of this subsection, a 14
provider shall provide to the Maryland Department of Health any information necessary to 15
carry out this subsection in the form and manner required by the Maryland Department of 16
Health. 17
8.3–701. 18
(a) (1) Subject to paragraph (2) of this subsection, beginning [July 1, 2026] ON 19
A DATE NOT EARLIER T HAN JANUARY 1, 2027, BUT NOT LATER THAN JANUARY 3, 20
2028, DETERMINED AND ANNOU NCED BY THE SECRETARY, a covered individual taking 21
leave from employment may submit a claim for benefits: 22
(i) 1. to care for a newborn child of the covered individual during 23
the first year after the child’s birth; or 24
2. because a child is being placed for adoption, foster care, or 25
kinship care with the covered individual or to care for or bond with the child during the 26
first year after the placement; 27
(ii) to care for a family member with a serious health condition; 28
(iii) to attend to a serious health condition that results in the covered 29
individual being unable to perform the functions of the covered individual’s position; 30
(iv) to care for a service member with a serious health condition 31
resulting from military service for whom the covered individual is next of kin; or 32
(v) to attend to a qualifying exigency arising out of the deployment 33
of a service member who is a family member of the covered individual. 34
8.3–703. 35 HOUSE BILL 102 7
(a) For the purposes of this section: 1
(1) the covered [individual’s] EMPLOYEE’S average weekly wage shall be 2
calculated as the total wages received by the covered [individual] EMPLOYEE in the 3
highest of the previous four completed calendar quarters THAT IMMEDIATELY PRE CEDE 4
THE ANCHOR DATE AND for which quarterly reports have been required, divided by 13; 5
and 6
(2) the State average weekly wage shall be the wage calculated under § 7
9–603 of this article. 8
(b) (1) Subject to paragraphs (2) and (3) of this subsection, the weekly benefit 9
amount payable to a covered [individual] EMPLOYEE under this title shall be: 10
(i) if the covered [individual’s] EMPLOYEE’S average weekly wage 11
is 65% or less of the State average weekly wage, 90% of the covered [individual’s] 12
EMPLOYEE’S average weekly wage; or 13
(ii) if the covered [individual’s] EMPLOYEE’S average weekly wage 14
is greater than 65% of the State average weekly wage, the sum of: 15
1. 90% of the covered [individual’s] EMPLOYEE’S average 16
weekly wage up to 65% of the State average weekly wage; and 17
2. 50% of the covered [individual’s] EMPLOYEE’S average 18
weekly wage that is greater than 65% of the State average weekly wage. 19
(2) The benefit paid under this title and any additional paid leave cannot 20
total more than 100% of the covered [individual’s] EMPLOYEE’S average weekly wage. 21
(3) The weekly benefit amount payable under paragraph (1) of this 22
subsection: 23
(i) shall be at least $50; and 24
(ii) may not exceed: 25
1. for the 6–month period beginning July 1, 2026, PERIOD 26
BEGINNING ON THE DAT E ANNOUNCED BY THE SECRETARY UNDER § 8.3–701(A)(1) 27
OF THIS SUBTITLE AND ENDING DECEMBER 31, 2028, BOTH INCLUSIVE , $1,000; and 28
2. for the 12–month period beginning January 1, 2027 2029, 29
and each subsequent 12–month period, the amount determined and announced by the 30
Secretary under paragraph (4) of this subsection. 31
8 HOUSE BILL 102
(4) (i) In this paragraph, “Consumer Price Index” means the Consumer 1
Price Index for All Urban Consumers for the Washington –Arlington–Alexandria, 2
DC–VA–MD–WV metropolitan area or a successor index published by the federal Bureau 3
of Labor Statistics. 4
(ii) Subject to subsection (e) of this section, for the 12–month period 5
beginning January 1, [2027] 2029, and each subsequent 12–month period, the maximum 6
weekly benefit amount shall be increased by the amount, rounded to the nearest cent, that 7
equals the product of: 8
1. the maximum weekly benefit amount in effect for the 9
immediately preceding 12–month period; and 10
2. the annual percentage growth in the Consumer Price 11
Index for the immediately preceding 12–month period, as determined by the Secretary 12
under subparagraph (iii)1 of this paragraph. 13
(iii) Beginning September 1, [2026] 2028, and on each subsequent 14
September 1, the Secretary shall determine and announce: 15
1. the annual percentage growth, if any, in the Consumer 16
Price Index based on the most recent 12–month period for which data are available on 17
September 1; and 18
2. the maximum weekly benefit amount effective for the 19
12–month period beginning the immediately following January 1. 20
(c) (1) Except as provided in paragraph (2) of this subsection, an increase in 21
the weekly benefit amount under subsection (b)(4) of this section applies only to [a claim 22
for benefits that begins] AN APPLICATION YEAR WITH AN ANCHOR DATE THAT OCCURS 23
ON OR after the date the increase becomes effective. 24
(2) If the leave for which benefits are being paid is being taken 25
intermittently, an increase in the weekly benefit amount shall apply to a claim for benefits 26
as specified in regulations adopted by the Department. 27
(d) The Department shall: 28
(5) make subsequent payments AT LEAST every 2 weeks until the benefit 29
period ends. 30
(e) (2) Subject to paragraph (4) of this subsection, on or before September 1 31
each year, beginning in [2026] 2028, the Board shall determine whether the seasonally 32
adjusted total employment from the Current Employment Statistics series as reported by 33
the U.S. Bureau of Labor Statistics for the most recent 6–month period is negative as 34
compared with the immediately preceding 6–month period. 35 HOUSE BILL 102 9
(f) The Department shall [notify each employer of] ANNOUNCE the increase to 1
the maximum weekly benefit specified under subsection (b)(3)(ii) of this section. 2
SECTION 2. AND BE IT FURTHER ENACTED, That the Maryland Department of 3
Labor may not require employers who are allowed to pool together with other employers 4
under § 19–602 of the Insurance Article to purchase insurance to escrow employer and 5
employee contributions under § 8.3–601 of the Labor and Employment Article before the 6
issuance of Family and Medical Leave Insurance Program benefits by the Department. 7
SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
June 1, 2025. 9
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.