However, each of these laws provides some balance between the needs of employees and those of employers. Under all of these laws, the employer has the ability to obtain medical or other verification of the need for leave. The employer also has the ability to obtain additional information if fraud or abuse is suspected. In addition, in most cases, the employer has the ability to deny the leave if it would impose an undue hardship or significantly interfere with business operations — which could certainly be the case if an employee were out for up to 24 weeks. Under current labor conditions the concern over leave management is even more present as many businesses struggle to find enough workers to keep their operations afloat.

And why is this not the right time? Many employers, particularly small businesses, have been devastated by the COVID-19 pandemic. The bill stipulates that the program will be funded by payroll contributions from both employers and employees. This is a cost that many employers simply cannot afford at this time. Moreover, even before the pandemic, many smaller employers were already struggling with the increased costs of doing business in Maryland following the recent increases in the minimum wage and the enactment of the paid sick leave law. Other states that have implemented similar paid family leave laws include an exemption or adjustment to the contribution costs for smaller employers. This bill does not.

The Maryland Chamber of Commerce is committed to working with the General Assembly to put together a program that better balances the needs of both employees and employers — specifically by clarifying that the program will provide insurance benefits to cover an employee’s unpaid leave, but not paid leave itself. We know a common-sense solution is in reach if both sides can come to the table and work together toward a resolution.

The full Senate will vote on this legislation the week of March 14th. Take action now and tell your Senators to oppose SB 275 HERE.