Maryland’s Paid Sick Leave Law: What Employers Need to Know

As of February 12, 2018, Maryland employers with 15 or more employees were required to begin offering paid sick and safe leave to their employees. Maryland became the ninth state to mandate paid sick and safe leave, and as of 2023, 14 states have these laws on the books.

Many businesses still aren’t familiar with the paid sick leave requirements. Some are new businesses just starting, while others might be auditing their requirements to ensure compliance.

Even though it’s been five years since the law’s enactment, many businesses still aren’t familiar with the paid sick leave requirements. Some are new businesses just starting, while others might be auditing their requirements to ensure compliance. In any case, read on to find out how you can comply with Maryland’s paid sick and safe leave law.

Background

On January 12, 2018, the Maryland General Assembly overrode Gov. Larry Hogan’s veto to pass the Maryland Healthy Working Families Act (“The Act”). This made Maryland the ninth state in the country to require paid sick and safe leave, in addition to Arizona, Washington, and others.

Here’s what you need to know about:

• Qualifications
• Exemptions
• Penalties for those who fail to comply with this new law

For quick reference and concerns, the State of Maryland also has a great FAQ resource that answers all employer and employee questions about this law.

Who Qualifies?

As we begin digging into this legislation, let’s look at its various facets, starting with who must comply with the law and what that means for these employers.

Employers

Maryland businesses with 15 or more employees during the preceding year must provide their workforce with paid sick and safe leave as of February 12, 2018. This includes employee statuses of:

• Part-time
• Full-time
• Temporary
• Seasonal workers

Employers must provide employees with unpaid sick and safe leave if there are 14 or fewer employees with the company.

Employees

The Act does not apply to employees who:

• Regularly perform fewer than 12 hours of work for an employer
• Are under the age of 18
• Provide staffing service through temp services agency employment
• Work for another individual providing part-time or temporary service via employment agency employment
• Perform work on an as-needed basis in a health or human services industry
• Engage or operate in, or as part of, the agricultural sector

The Act also may not apply to certain employers who are parties to collective bargaining agreements in the construction industry.

When do earned sick and safe leave apply?

Employees may request earned sick and safe leave in the following circumstances:

• To care for their own mental or physical illness, injury, or condition, or that of a family member
• To obtain preventative medical care for themselves or a family member
• For maternity or paternity leave
• Where a work absence is necessary due to domestic violence, sexual assault, or stalking committed against the employee or their family member

Accrual

Employees will accrue leave at the minimum rate of 1 hour of paid sick and safe leave for every 30 hours worked, up to 40 hours of paid leave a year. Employers may also front-load the accrual requirement and award employees full eligibility for up to 40 hours at the beginning of the year.

While employees may carry over up to 40 hours of paid sick and safe leave, employers may cap leave usage at 64 hours per year.

Timing

According to the law, employers were required to allow eligible employees to begin accruing earned sick and safe leave on January 1, 2018, or, for employees hired after this date, upon commencement of their employment. The Act went into effect on February 12, 2018.

Employees will be able to use their accrued paid sick leave beginning on the 106th calendar day after the commencement of their employment.

Employees will be able to use their accrued paid sick leave beginning on the 106th calendar day after the commencement of their employment. Team members for whom the need to use their sick and safe leave is foreseeable may be required to provide reasonable notice up to 7 days in advance.

How can employers comply?

Compliance is a critical piece of your business. Here are some of the fundamental steps you can take to ensure you comply with the regulation.

Notices

Employers must notify each employee of their entitlement to paid sick leave and the associated accrual rate. The Maryland Commissioner of Labor and Industry has made model notices available on their website.

Employers must also provide each employee with a written statement documenting the amount of earned sick and safe leave available to them per pay period.

Recordkeeping

Employers must retain records of all earned sick and safe leave accrued and used by each employee for at least 3 years.

Local Laws

According to the Act, local jurisdictions have been preempted from enacting their own sick and safe leave laws on or after January 1, 2017. Montgomery County’s Earned Sick and Safe Leave Law, however, was passed in 2016, which means that employers in that county must comply with both sets of regulations.

Enforcement/Penalties for Noncompliance

Employees may file complaints or a civil cause for action for any violations of the Act, such as retaliation by the employer. Companies that do not pay may be cited for an “unlawful deduction from wages” or face other civil or criminal penalties in addition to being required to reimburse employees for any time off taken as a part of the Healthy Working Families Act.

Contact our HR Advisor team for further information on Maryland’s paid sick leave law, other regulations, and to learn what you can do to further prepare your business.