Last week, the Maryland General Assembly gave final approval for the Family & Medical Leave Insurance (FAMLI) Program, sending the legislation to the Governor. SB 275 has been significantly altered through the legislative process; however, the Maryland Chamber remains extremely concerned about the additional costs and administrative burden to employers, especially small businesses and non-profits, at a time when they can least afford it.

Maryland’s legislative leaders had a chance to get this policy decision right by establishing a commission to evaluate the best path forward on a program that will work for Maryland’s employers and employees. Instead, they chose to cave to political interests and passed legislation with only one guarantee, to increase costs on Maryland businesses and workers.

What’s really in SB 275?

• $1.6 billion in new payroll taxes for Maryland employers and employees.
• A new and unprecedented intrusion into government regulation of employer sponsored paid time off (PTO).
• Zero guarantees that the fund being created will be financially stable by the date benefits can be paid out.
• No payroll deduction cap. The Maryland Department of Labor will levy whatever tax they deem necessary on employers and employees to keep the fund sustainable.
• No definition of who constitutes a Maryland employer.
• A mandate on the Maryland Department of Labor requiring them to begin administering the program while a study is simultaneously completed to determine if they have the capability of carrying out that responsibility.

With record inflation, persistent supply chain issues and high gas prices, Maryland job creators and workers are feeling the crunch of an uncertain economy. SB 275 will exacerbate and slow Maryland’s economic recovery.

As Governor Hogan debates his decision on this harmful legislation, you need to ACT NOW AND URGE YOUR SENATOR TO SUPPORT HIS DECISION should he choose to veto SB 275. If the Governor vetoes this bill, we need the members of the Senate who voiced their previous consternation on SB 275 to support a better path forward. One that will produce a program worthy of the public’s trust. A program of this magnitude is worth getting right the first time.

ACT NOW

Want to know more about why you should oppose this legislation? Read a statement by our President & CEO, Mary Kane, on the passage of SB 275.