Maryland’s mandatory Family and Medical Leave program, obligating employers to grant specific paid leave to employees under certain circumstances, will take effect later than had been planned – under a finalized bill, the payroll tax and employer/employee contributions will commence on July 1, 2025, with benefits eligibility commencing one year later on July 1, 2026. A MACo-sponsored collaborative is building to offer member counties an easy path toward a private plan.

HB 571 has passed, in amended form, through the General Assembly to modify timing and some specifics of the forthcoming Family and Medical Leave Insurance Act, variously referred to as FAMLI and “Time to Care” by stakeholders. The delayed implementation of both the employer/employee contributions to the state insurance fund, and the benefits eligibility were proposed to allow the Maryland Department of Labor enough time to assemble its needed oversight and administration structures.

MACo had suggested amendments to one segment of the bill, which as introduced allowed the State to charge fees on employers who opt out of the State-run insurance program and decide to offer comparable benefits on their own – a path that appears likely for virtually every county government, among others. The final version of the bill specifies that:

THE DEPARTMENT MAY ADOPT REGULATIONS THAT ESTABLISH REASONABLE APPLICATION AND APPLICATION RENEWAL FEES FOR PRIVATE EMPLOYER PLANS UNDER THIS SECTION

This language satisfied public employees as it establishes a mere processing fee, rather than opening the door to a broader cross-subsidy across categories of employers. For more on the MACo testimony and public hearing, see earlier Conduit Street coverage: Counties Resist Paid Leave Fees; Department Explains Only Covering Processing

The bill will be presented to the Governor for his signature, but the Department of Labor’s vocal support for the legislation makes that final step a mere formality.

MACo has collaborated with the Maryland Association of Boards of Education and the Maryland Municipal League to develop a collaborative for these public entities (the members of each association, including county governments) to work together to assemble a private plan, with stable and competitively bid costs, to serve the many members. For more information on the collaborative, please contact Michael Sanderson at MACo.

For more information on HB 571 and its cross-file counterpart, visit the General Assembly website:
HB 571 Bill Information — Final bill text — Fiscal and Policy Note