Hearings have been scheduled in both the House and Senate on HB 839 and SB 539, legislation that would establish a Family & Medical Leave Insurance (FAMLI) Program.
- HB 839 has a hearing scheduled in the House Economic Matters Committee on Monday, February 24, at 1 p.m.
- SB 539 has a hearing scheduled in the Senate Finance Committee on Thursday, February 27, at 1 p.m.
The program generally provides up to 12 weeks of benefits to an employee who is taking partially paid or unpaid leave for the following reasons: 1) to care for a child during the first year after the child’s birth or after the placement of the child through foster care or adoption; 2) to care for a family member with a serious health condition, 3) because the employee has a health condition that results in their being unable to perform the functions of their job, 4) to care for a service member who is the employee’s next of kin, or 5) because the employee has an exigency arising out of the deployment of a service member who is a family member.
The bill establishes the FAMLI Fund, which will consist of mandatory contributions from employees, employers and self-employed individuals. Beginning January 1, 2021, each employee, employer and self-employed individual shall contribute to the fund. The total rate of contribution: 1) may not exceed 0.5% of an employee’s wages, 2) shall be applied to all wages up to and including the Social Security wage base, 3) shall be shared equally by employers and employees, and 4) shall be sufficient to fund the benefits payable.
There are any number of additional nuances and complexities outlined in the language, and the Chamber is very concerned that the implementation of this legislation will result in additional costs and administrative burden to employers, and in particular small businesses. In past mandates impacting pay and benefits, the General Assembly has been open to either incremental implementation or accommodations for smaller employers (<50).
Through the Maryland Chamber of Commerce Paid Family & Medical Leave Work Group, the Chamber has attempted to work with the advocates for this program to outline our concerns and encourage changes to the bill. Unfortunately, these changes, some of which help the bill more closely align with federal law and seek to address some of the challenges for small businesses, were not accepted. The Chamber will continue to work with stakeholders toward a better outcome on this issue.
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