| Maryland Clarifies Parental Leave Act |
| Beginning October 1, 2025, Maryland employers who are covered by the federal Family and Medical Leave Act (FMLA) are no longer required to comply with Maryland’s unpaid parental leave law. Senate Bill 785 changes the definition of “employer” under the Maryland Parental Leave Act to exclude those employers already covered by the federal FMLA. Whereas both laws offer eligible employees the right to unpaid leave and job protection, the Maryland Parental Leave Act applies to employers with 15 to 49 employees in Maryland, and under the federal FMLA, a covered employer is one that employs 50 employees within a 75-mile radius. Although the threshold number of employees differs between the two laws, it is important to note that some employers may qualify for FMLA even if their employee headcount drops to fewer than 50 employees. When determining if an employer is covered under the federal FMLA, one looks at the current and previous calendar year, specifically at the number of employees that the employer maintained on the payroll during 20 or more calendar workweeks within that time frame. Based on the above determination, historically, if an employer’s headcount dropped to fewer than 50 employees, an employer could still be subject to federal FMLA and the Maryland Parental Leave Act. Now, Maryland’s Parental Leave Act excludes those already covered by FMLA, even if the employer has between 15-49 employees. The legislation aims to simplify compliance by avoiding an overlap of the federal FMLA and the Maryland Parental Leave Act, where in the past, employers could have been required to offer both. More information can be found here: https://mgaleg.maryland.gov/2025RS/bills/sb/sb0785T.pdf. |