Maryland PFML Program Delayed Once Again

On April 25, 2024, Maryland Governor Wes Moore signed legislation delaying, once again, the Maryland paid family and medical leave program (called “A Time to Care Act of 2022” and hereinafter referred to as “MD PFML”).

Highlights of this recent legislation (S.B. 485) impacting MD PFML for employers to know include the following:

1. Effective date delay: The effective date of MD PFML is now delayed to July 1, 2026.
2. Contribution start date delay: The start date for employer (those with 15 or more employees) and employee contributions to MD PFML is delayed to July 1, 2025.
3. “Wages” definition change: The definition of “wages” is changed now to align with the definition of “wages” under the Maryland Unemployment Insurance Law.
4. “Covered employee” definition change: The definition of a “covered employee” is changed now to be based on performing services under employment in Maryland over the four most recently completed calendar quarters for which quarterly reports have been required, rather than over the 12-month period in the previous definition.
5. The average weekly wage that benefits are based on is calculated as the total wages received by the covered individual in the highest of the previous four completed calendar quarters for which quarterly reports have been required, divided by 13, instead of the last 680 hours worked divided by the number of weeks worked.
6. Private MD PFML plans: Employers’ private plans must consist of either employer-provided benefits or insurance (not a combination of both) and must be provided (not just offered) to all eligible employees.

MD PFML benefits were initially scheduled to start on January 1, 2025 with employee contributions scheduled to begin on October 1, 2023.

However, on May 3, 2023, Governor Moore signed an amendment delaying the MD PFML benefits effective date to January 1, 2026 and the contribution start date to October 1, 2024. Click here for a previous Risk Strategies article detailing this prior MD PMFL delay in 2023, along with key details of the MD PFML program.

As a reminder, employers with less than 15 employees are not required to contribute to the program but their employees must still contribute.

Maryland PFML Timeline

Employer Impact

This most recent MD PFML delay provides even more time for covered employers to begin preparations to implement the program, including updating payroll systems, along with updating handbooks and leave policies. Employers are advised to periodically monitor the Maryland Department of Labor MD PFML webpage for updates and guidance.

The Risk Strategies Absence Management team is here to help. Contact us directly at benefits@risk-strategies.com.