Updated December 2024

With your thoughts around annual business strategies, remember to take into account Maryland HR regulation – The Time to Care Act.

BlueStone Services takes a closer look at the vital aspects of Maryland’s Time To Care Act below. Take a look at the recent updates to the new insurance program, designed to support employees during crucial life moments through paid leave. 

We break down eligibility requirements, benefits, and the steps Maryland employers and employees must take to comply with the Maryland Time to Care Act.

What is the Maryland Time to Care Act?

On June 2022, Maryland’s Time to Care Act of 2022 (TTCA) took effect. The law establishes an insurance program where Maryland employers and employees, as well as self-employed individuals, contribute to a fund with rates that are determined by the Maryland Department of Labor.

The Time to Care Act in Maryland allows an employee to take 12 weeks of paid leave for any medical or family emergency. An employee may take an additional 12 weeks of paid leave in certain circumstances.

What is the Timeline of the Time to Care Act?

Fortunately, its provisions do not take effect all at once. The rollout of Maryland’s Time To Care Act (TTCA) features a staggered implementation timeline, designed to give both employers and employees sufficient time to prepare for the upcoming changes. 

Initially slated for earlier dates, recent legislative amendments have adjusted the timeline. As of now, employers and employees are required to begin making contributions to the program from July 1, 2025. 

Benefit claims under the TTCA can be submitted starting from July 1, 2026. This delayed start provides ample time for the necessary administrative infrastructure to be established and for employers to adapt to the new requirements. 

The system is designed to support workers needing time off for significant life events, such as serious health conditions or caring for a family member, offering job protection and partial wage replacement during their leave.

How Does the Maryland Time to Care Act Impact Me?

Employers should be mindful of the following:

• Employers with 15 or more employees will be required to contribute to the Fund.
• Employees, employers, and self-employed individuals may begin contributing to the Fund as of July 1, 2025.
• Beginning on July 1, 2026, employees taking leave under the Act will be paid a partial wage replacement based on a range of $50 to $1,000 per week. The pay scale will vary based on income with lower-income workers receiving the highest portion of their income, up to 90%.

Since the TTCA will be phased in incrementally over the next two years, employers should take time now to plan and prepare, become familiar with the TTCA’s benefits scheme, and project the potential additional costs that the TTCA will impose on them.

Employers also may want to plan for the effect the TTCA may have on existing leave policies and bargaining agreements.

Updates to the Maryland Time to Care Act

The Maryland Time To Care Act now features an adjusted timeline for its implementation, following recent legislative revisions. 

Furthermore, the TTCA brings about significant changes to existing labor policies by aligning contribution calculations with the state’s unemployment insurance guidelines and expanding the definition of family members eligible for care under the program. 

This broadening of scope aims to reflect a more inclusive understanding of family needs. Businesses, especially smaller ones, are afforded time to align their operations with the new standards, either by participating directly in the state plan or by opting for equivalent private insurance plans that meet or surpass the state’s criteria. 

For a detailed breakdown of the TTCA’s provisions and its implications for employers and employees, additional resources and updates are available on the Maryland Department of Labor.

How can BlueStone Services Help?

BlueStone Service’s human resources outsourcing team will be closely monitoring developments on this matter and are happy to discuss the program and process with you further.

They are also ready to assist organizations with their development of existing leave policies and procedures from revising handbooks to providing HR compliance check-ups. To learn more about their services, please contact us today! 

We’d love to learn more about your organization and see how we can help.

Contact us if you are interested in getting started today.