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MarylandHB 01022025 Regular SessionHouseWALLET

Family and Medical Leave Insurance Program - Revisions

Sponsored By: Sponsor information unavailable

Signed by Governor

Private Sector Labor and IndustryClaimsConsumer Price IndexEscrow AccountsHealth -see also- COVID19; EnvHlth; MedCon; etc.Insurance -see also- Health Ins; MAIF; Motor Vehicle InsKinship -see also- Parents and GuardiansLabor, Department ofLeaveNoticesReportsRules and RegulationsSalaries and Compensation -see also- Overtime; Reimb. RatesWork, Labor, and Employment -see also- JobTrn; Leave; etc.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 0 costs, 2 mixed.

Workers get inflation-linked leave benefit limits

The weekly benefit maximum is $1,000 from the announced benefit-start date through December 31, 2028. Starting January 1, 2029, annual increases equal the prior maximum multiplied by annual growth in the Washington–Arlington–Alexandria area Consumer Price Index for All Urban Consumers, subject to the employment review. Beginning September 1, 2026, the Secretary must announce annual inflation growth and the maximum for the following January; beginning September 1, 2028, the Labor Department’s board must check whether seasonally adjusted total employment fell between the two latest six-month periods using federal employment data. Increases apply to claims with an anchor date on or after the increase takes effect, while Department rules govern intermittent leave. The payment rule, effective June 1, 2025, requires later benefit payments at least every two weeks while the benefit period remains open; it does not start benefits on that date.

Self-employed owners get optional leave coverage

Effective June 1, 2025, the law creates a framework for optional paid leave coverage for self-employed people. It covers Maryland residents who are their business’s sole owner and only employee. The Secretary must adopt enrollment rules by July 1, 2028. Those rules set contributions, benefits, and enrollment steps, rather than automatically applying all employee benefit-payment rules.

Workers face new leave benefit rules

Beginning June 1, 2025, workers need at least 680 Maryland work hours in the four most recently completed calendar quarters for which reports were required before the anchor date. That date is the earlier of application completion or leave starting. The application year starts on Sunday of the week leave begins. Average weekly wages equal earnings in the highest-paid of the four completed quarters immediately before the anchor date, divided by 13. Benefits use the state average weekly wage as a comparison, have program minimums and maximums, and cannot exceed 100% of your average weekly wage when combined with additional paid leave.

Workers get later leave program start

Employee and employer contributions start January 1, 2027, instead of July 1, 2025, with a total rate capped at 1.2% of wages up to the Social Security wage base. Employees pay half; employers with at least 15 employees pay half and can cover some or all of the employee share. The Secretary must set the 2027 rate by May 1, 2026, then set each following year’s rate by November 1, starting in 2027. The Secretary must announce a claim-opening date between January 1, 2027, and January 3, 2028. Covered leave includes bonding with a new or placed child, your own serious health condition, care for a family member or service member with a serious health condition, and qualifying military needs.

Pooled employers avoid contribution insurance requirement

Beginning June 1, 2025, Maryland’s Labor Department cannot require eligible pooled employers to buy insurance to hold contributions in escrow before benefits begin. This protection covers employers allowed to pool under Maryland insurance law. It applies to both employer and employee contributions.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 137 • No: 39

Senate vote • 4/7/2025

Third Reading Passed

Yes: 42 • No: 5

House vote • 3/28/2025

Third Reading Passed

Yes: 95 • No: 34 • Other: 2

Actions Timeline

  1. Approved by the Governor - Chapter 363

    5/6/2025

  2. Returned Passed

    4/7/2025House

  3. Third Reading Passed (42-5)

    4/7/2025Senate

  4. Floor Amendment {583924/1 (Senator Jennings) Rejected

    4/7/2025Senate

  5. Second Reading Passed

    4/5/2025Senate

  6. Favorable Adopted

    4/5/2025Senate

  7. Favorable Report by Finance

    4/5/2025Senate

  8. Hearing 4/04 at 1:00 p.m.

    4/3/2025Senate

  9. Rereferred to Finance

    4/3/2025Senate

  10. Referred Rules

    3/31/2025Senate

  11. Third Reading Passed (95-34)

    3/28/2025House

  12. Second Reading Passed with Amendments

    3/27/2025House

  13. Favorable with Amendments {653729/1 Adopted

    3/27/2025House

  14. Favorable with Amendments Report by Economic Matters

    3/24/2025House

  15. Hearing 1/30 at 1:00 p.m.

    1/8/2025House

  16. First Reading Economic Matters

    1/8/2025House

  17. Pre-filed

    10/12/2024House

Bill Text

  • Enacted

    5/6/2025

    PDF

  • Third Reading

    3/27/2025

    PDF

  • First Reading

    1/8/2025

    PDF

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