Maryland Legislature Overrides Governor’s Veto of Paid Leave Program

Maryland has become the tenth state, in addition to the District of Columbia, to enact a paid family and medical leave insurance program. The Maryland Department of Labor must establish regulations for implementing the Time to Care Act of 2022, no later than June 1, 2023.

After the state legislature passed the bill to create this program, Governor Larry Hogan vetoed it. The state legislature voted to override Hogan’s veto the next day. Hogan based his veto on the unfair penalties that the law would place on small businesses in the state. 

The Maryland program will provide up to 12 weeks of paid leave from employment to care for family members, their own medical conditions, or qualifying events due to a family member’s military deployment. Workers who use benefits under the plan will receive a weekly benefit based on their average weekly wages, ranging between $50 and $1,000, indexed to inflation. 

The Maryland Department of Labor will set up a paid leave fund that collects contributions from employers and employees based on their wages. Self-employed individuals also can participate in the plan.

The Maryland family and medical law still could face legal challenges, as have laws in other states. For instance, Delta Airlines successfully sought an exemption from the New York state law for its employees. Meanwhile, Colorado is facing litigation over allegations that its law violates state tax laws. 

The existing patchwork of family leave programs, which differ widely from one state to another, can make it challenging for large national employees who administer employee benefits under ERISA. Other states with paid family leave programs include California, Connecticut, Colorado, Massachusetts, New Jersey, New York, Oregon, Rhode Island, Washington, and the District of Columbia.

HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.

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Hall Benefits Law, LLC

HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.
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