On February 14, 2024, Associate Policy Director Brianna January testified before the House Economic Matters Committee in support of HB 571- Family and Medical Leave Insurance Program- Modifications with amendments. This bill modifies and alters certain aspects of the Family and Medical Leave Insurance (FAMLI) Program — pushing back the timetable for its full implementation and effect, and authorizing fees to be applied to employers opting out of the State-run system.
Of concern to counties is a provision in the bill authorizing the Department of Labor to levy fees on employers who choose to manage the FAMLI benefit outside of the State Plan via an Equivalent Private Insurance Plan (EPIP) or self-insurance. The bill, as drafted, does not provide any details around the amounts of or frequency of the proposed fees. MACo’s testimony at the hearing requested the fee authorization be struck from the bill or for local governments to be exempt from the requirement.
During the public hearing on the bill, however, committee members (citing MACo testimony and other concerns) asked about the proposed fees, and Department of Labor representatives clarified that their intent was merely to use application fees to cover processing costs – a nominal fees “in the hundreds.” They did not express an interest in a broader policy shift to transport wholesale program costs from employers opting out of the State-run insurance system — the central concern that triggered MACo’s opposition, and that from several other employer groups whose members appear to be considering or favoring a private plan.
Counties, as major employers in Maryland, support the efforts of the bill to adjust the timeline of the FAMLI Program to ensure the State and employers are in the best position to implement and manage the benefit. However, counties are concerned with language in the bill to authorize the Maryland Department of Labor to collect fees on employers who do not participate in the State Plan and instead offer the FAMLI benefit via an Equivalent Private Insurance Plan (EPIP).
HB 571’s cross-file, SB 485, was heard on February 16, 2024 in the Senate Finance Committee. Brianna January testified in support of this bill with amendments.
More on MACo’s Advocacy:
