What Employers in Maryland Should Know about the New Paid Family Leave Contributions Starting This Year
In 2022, Maryland passed the Time to Care Act setting up a paid family and medical leave program known as Family and Medical Leave Insurance (FAMLI). Qualified Maryland employees can receive up to 12 weeks of paid family and medical leave for various reasons including childbirth and adoption, serious health conditions, and military family obligations. The program will be funded by both employer and employee contributions starting on October 1, 2024. Maryland employers must plan for the implementation and inform employees about the upcoming deductions. The initial contribution rate is set at 0.90% of an employee’s covered wages, to be shared equally between employees and employers. However, employers have the choice to pay more than half of the required contribution. Smaller businesses with 14 or fewer employees aren’t required to contribute but must withhold the employee part from wages. The Act only mandates employers with 15 or more employees in Maryland contribute to the FAMLI fund.
The Act covers Maryland employees who have worked 680 hours or more in the 12 months preceding the leave. These employees can receive up to 12 weeks of paid family and medical leave for various reasons. In cases where an employee welcomes a new child and also experiences a serious health condition within the same year, they may receive up to 24 weeks of leave. The income provided during the leave period can reach up to $1,000 per week but will depend on the employee’s average weekly wage in comparison to the state average weekly wage.
Employers will be automatically enrolled into FAMLI unless they provide a comparable private plan that must be approved by the Maryland Department of Labor. Unless such a plan is approved, starting from October 1, 2024, employers will be obligated to contribute. As such, Maryland employers should prepare for these changes in the law.
While this article discussed Maryland’s Paid Family Leave, other states have similar programs that can sometimes be difficult to navigate. If you are in California, for instance, and need to access your Paid Family Leave benefits, you may be uncertain about how best to communicate with the necessary departments. A service like eddcaller.com can assist you with this process, providing valuable information on how to contact PFL, expedite your access, and ensure that you can initiate and maintain your benefits without unnecessary delays or confusion.