On April 9, 2022, the Maryland General Assembly passed the state’s Time to Care Act (the Act), overriding Governor Larry Hogan’s previous veto of the bill and establishing a Family and Medical Leave Insurance Fund for the purpose of administering paid family and medical leave (PFML) benefits for Maryland employees. Contributions under the law will begin on October 1, 2023, with benefits available to covered employees beginning January 1, 2025.

Benefits, Eligibility, and Coverage

• Employees will be eligible for PFML benefits if they have worked at least 680 hours over the 12 months immediately preceding the date on which leave is to begin.
• Any entity that employs at least one individual in the state of Maryland – including any employee who is working remotely from a Maryland location – is a covered employer under the Act. Thus, the Act extends PFML obligations to employers who are not covered by the federal Family and Medical Leave Act (FMLA).
• Employees will be eligible for up to 12 weeks of PFML per application year (the 12-month period beginning on the first day of the week in which PFML begins). Employees may be eligible for an additional 12 weeks of PFML benefits if, within the same application year, they qualify for both parental leave and medical leave for their own serious health condition.
• PFML may be used continuously or intermittently. Employees may not use intermittent leave in increments of fewer than four hours.
• Employees will receive wage replacement up to 90% of their average weekly wages, with weekly benefits capped at $1,000. The weekly wage cap will be adjusted annually, beginning January 1, 2026, based on the annual percent increase in the Consumer Price Index for the Maryland area.
• Leave under the Act is job-protected; employers must restore employees to their position, or an equivalent position, upon leave expiration.
• Employers may only terminate employees who are on PFML leave for cause or to prevent “substantial and grievous” economic injury. Employers must provide employees with notice of intent to deny job restoration at the time they determine that substantial and grievous economic injury would occur if the employee were restored to their position.
• Employees’ benefits must be maintained during leave consistent with the requirements of the FMLA.

Covered Reasons for Leave

• Employees may use PFML for the following covered reasons:
  • Care for a child within the first year after the child’s birth, adoption, or placement with the employee through foster or kinship care
  • Care for a family member who is experiencing a serious health condition
  • Employee’s own serious health condition
  • Care for an individual who is the employee’s next of kin, who is experiencing a serious health condition resulting from military service
  • Qualifying exigency related to the military deployment of the employee’s family member
• “Family member” is defined as:
  • Employee’s spouse
  • Employee’s biological, adopted, foster, or step-child, child for whom the employee has legal/physical custody or guardianship, or child for whom the employee stands in loco parentis (regardless of age)
  • Employee’s or employee’s spouse’s biological, adoptive, foster, or step-parent, legal guardian, or ward, or individual who stands in loco parentis for the employee or employee’s spouse
  • Employee’s biological, adoptive, foster, or step-grandparent/grandchild
  • Employee’s biological, adoptive, foster, or step-sibling
• Leave under the Act runs concurrently with any FMLA leave to which an employee is entitled.

Administration and Funding

• The Maryland Secretary of Labor will adopt regulations regarding the administration of the PFML program, including rates of contribution for all employees, and for employers with 15 or more employees, no later than June 1, 2023.
• Employers may satisfy their obligations under the Act by providing a private PFML plan that meets or exceeds the required benefits and coverage and is approved by the Maryland Department of Labor. Such employers and their employees will be exempt from the state’s contribution requirements.
• In the event of a violation, the Act allows employees to recover up to three times any lost wages or compensation, as well as reasonable attorneys’ fees.