MD Paid Family Leave bill takes effect: What’s next
MARYLAND- Maryland’s Paid Family and Medical Leave bill went into effect June 1st, but advocates say the payments for claims won’t be distributed until at least 2025.
The state needs the time to create the infrastructure at the Maryland Department of Labor to manage and distribute payments. Per the bill, two studies are set to begin this month with the intent of measuring and auditing the DOL to see what kind of back-end development needs to be done for the agency to build, manage and secure payments from a fund that both employees and businesses would pay into.
How much each party would need to pay is also yet to be determined but caps have been set at 25 percent for employees and 75 percent for employers.
Advocates for the legislation from A Time To Care Coalition say they are pushing lawmakers to make sure the system is easy to use for those looking to apply.
“We have seen the other system in the nation make the application for paid family leave too difficult and the more hoops you have to jump through the less likely you are to apply so our goal is there is an equitable process,” said Myles Hicks of Time to Care Coalition.
The study of the DOL’s capacity is expected to conclude in October, with a decision on the finalized revenue split expected to be announced this December.