[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6373691,"mediaKeyId","2145628-05d956385dea7daa5eb069df45681e3c","parentId",2145628,"title","Maryland outlines timeline for Family and Medical Leave Insurance; contributions to begin in 2025, benefits in 2026","audioSeconds",256,"startMs",5822000,"endMs",6078000,"viewUrl","/Search/View?dp=1&key=2145628-05d956385dea7daa5eb069df45681e3c&start=5822&end=6078","thumbnailUrl","https://assets.pipeline.soar.com/2145628-05d956385dea7daa5eb069df45681e3c/thumbnail_5822000.jpg","articleUrl","/articles/6373691/Maryland/Maryland-outlines-timeline-for-Family-and-Medical-Leave-Insurance-contributions-to-begin-in-2025-benefits-in-2026","mediaUrl","https://secure.pipeline.soar.com/6373691-79f3b7f0aecfc6b3f246ef0eba9a56f0/orig.mp4?Expires=1771229297&Signature=ABQYfo-AwbSrIFHraQWQZw-6EWy60TkCQaFH~d8hJ~gILx1a2yaTIhZX5DIbDhKL9it-6bHIbcsdz4SWGvWTojsW35d3yNn39cE7UMUdHOQXkaSdKTKyYP3dT2s7kR6F7flO1zZVCIPx0drQRIBZNb3167Rum8KFXk44IdN3UUrz7-uTSpCNjSpwqNsmUopjt-Uxa0RAidjvIjOduzvAs9b7wKbOx-5IA051zZFQEDdWjeEimeMozIvKp2z7HAehix5O0JRQaV-uDykpBYILKWnH7lvsk5Tr03Lwm6xMxFS~j0M~phZkOgDp4Oey~NAPrdSTCf4dcPuMthzvhdDivA__&Key-Pair-Id=KUT5TJCACFTXG","author","Maryland General Assembly - Finance","date","2025-01-22T00:00:00Z","article","Maryland Department of Labor officials updated the Senate Finance Committee on Jan. 22 about the state’s Family and Medical Leave Insurance (FMLI) rollout, outlining the timeline, employer options and remaining implementation challenges.

Under the schedule presented, employers will begin payroll deductions in July 2025 and remit the first payments to the department in October 2025; workers and employers will be eligible to receive benefits from the trust fund or approved private plans starting July 1, 2026. Assistant Secretary Elliot Scherer said the department created two main paths for employers: participate in the state fund, or declare intent to provide an alternative (either a self‑insured plan or a private insurance plan regulated by the Maryland Insurance Administration). Employers will be able to declare intent to seek private coverage in May 2025; the department plans to open applications to self‑insure in January 2026 and allow private market plan confirmations in spring 2026.

Contributions and benefits: the statutory contribution rate is 0.9% of covered wages, split equally between employees and employers (0.45% each). The department said small employers (those with fewer than 15 employees) will not pay the employer share under the statutory structure. Benefits are paid on a progressive scale—lower‑wage workers receive higher replacement shares (up to 90% of wages), and the benefit is capped at $1,000 per week; the program provides up to 12 weeks of leave under the statute.

Administration and costs: the department said the program will be fully special‑funded: contributions and a small administrative assessment on private plans will finance benefits and administration. Staff estimated an administrative workforce of roughly 350–400 positions to build the digital systems, process claims, run customer service and manage fund accounting; those operating costs will be paid from program receipts rather than the general fund, the department said. Officials also said they have procured vendors with experience in other states, are building a modern self‑service portal and expect to deploy a “pizza‑tracker” style claims tracker to reduce call volumes.

Challenges and next steps: Secretary Wu and assistant secretaries noted procurement and IT complexity have delayed some implementation steps and said the department may use administrative flexibilities to stay on the statutory schedule. The department has engaged actuarial and accounting consultants and emphasized fraud and cybersecurity protections. Staff also said the state is proposing additional limited legislation to address self‑employed enrollment processes, an area the department described as administratively complex with low take‑up in other states.

Cost signals for individuals and employers: department staff provided ballpark examples during questioning—at median wages (roughly $70,000), the employee and employer shares each translate to about $2.70–$6.30 per week; a worker at about $90,000 in annual pay would see roughly $15 deducted biweekly and the employer would also contribute roughly $15 biweekly. The department said it will continue outreach—more than 80 events to date and a planned statewide marketing campaign—to educate the estimated 2.5 million covered workers and roughly 180,000 employers about enrollment options and compliance.

The department asked lawmakers for patience on implementation details and pledged to work with the Maryland Insurance Administration, the Department of Budget and Management and legislators to confirm employer choices for state coverage, self‑insurance or private plan alternatives.","mediaType","Video","parentTitle","FIN Committee Session, 1/22/2025 #1","oneSentenceSummary","The Maryland Department of Labor presented a timetable to lawmakers for implementing Family and Medical Leave Insurance: payroll deductions to begin July 2025, with benefits payable July 1, 2026 under the state trust fund or approved private plans.","taxTitle","Finance Committee, SENATE, SENATE, Committees, Legislative, Maryland","taxId",15094,"location","Maryland","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6373694,"Maryland ramps up enforcement of Workplace Fraud Act; 29 citations issued in 2024, task force report due",560,3644000,4204000,"/Search/View?dp=1&key=2145628-05d956385dea7daa5eb069df45681e3c&start=3644&end=4204","https://assets.pipeline.soar.com/2145628-05d956385dea7daa5eb069df45681e3c/thumbnail_3644000.jpg","/articles/6373694/Maryland/Maryland-ramps-up-enforcement-of-Workplace-Fraud-Act-29-citations-issued-in-2024-task-force-report-due","https://secure.pipeline.soar.com/6373694-63271995985d386cd7ddd91492c26b2f/orig.mp4?Expires=1771229297&Signature=QaU2ORKCO-jAsbTPTvu6K1c7A6SxXRuNG5Y7cSxCnFiFdyIeh7tgJVpCs1PxzJZaq5Lvyda4h3ZVJM5mbaHvKs-ZsTJYR-Py3DXOnYniKl0gDWQTVjmHJcp7Wb94QvLKmbzZqZcUrs2kDNZhiRsxXBPFug9ZYj-cU2IeG~pf~4XmJavRD9dd63oKqe9VZJd12tMz-ahYlnZa6sQQYWsR0yOXtKWbKqOiwqgkAtucgb48aFCM4a-Qqy-ZvUBgwVAetQZG61trImF1iVbZDSY9MD2K0MxeBYrCTQCkL1TzLu-OKZSVBX8oYrqsYq6rOLxXiEPOkrABg~8UGw1zB~VC7Q__&Key-Pair-Id=KUT5TJCACFTXG","Maryland labor regulators told the Senate Finance Committee on Jan. 22 that enforcement of the state’s 2009 Workplace Fraud Act has increased substantially after years of minimal activity.

Commissioner Devke Burke, who leads the Division of Labor and Industry, said the division rebuilt its workplace‑fraud unit beginning in 2024. The unit interviewed 1,687 workers last year, opened about 185 investigations, identified 199 misclassified employees and issued 29 citations for non‑knowing violations. The unit also made about 243 referrals to sister agencies, the department said.

Scope and process: Commissioner Burke described how the Workplace Fraud Act makes worker misclassification an independent violation of Maryland law but limits the statute’s scope to the construction and landscaping industries. The law distinguishes non‑knowing violations—often businesses that misclassify out of habit or misunderstanding—from knowing violations, which require proof of actual knowledge, deliberate ignorance or reckless disregard. The law allows employers to cure non‑knowing violations within 45 days without civil penalties; knowing violations carry higher penalties and the opportunity to cure does not apply.

Joint enforcement task force: Secretary Wu said Governor Moore reconstituted a joint enforcement task force about a year ago that brings together enforcement staff from multiple agencies—including the Comptroller’s office, the Maryland Insurance Administration, the Unemployment Insurance unit, workers’ compensation authorities and the Attorney General’s Office—to coordinate leads, share data and avoid duplicative investigations. The department said a task‑force report is forthcoming in the next two weeks.

Results and limits: The department emphasized achieving compliance and noted the unit’s emphasis on non‑knowing cases so employers can correct records, pay back taxes and obtain workers’ compensation coverage. Commissioner Burke provided one example in which a workplace‑fraud citation prompted a UI audit that uncovered more than $1.7 million in previously unreported wages. Staff also said prevailing‑wage and wage‑payment investigations recovered more than $1 million in worker restitution in FY24.

Barriers and concerns: Senators pressed department leaders on low citation counts relative to the perceived scale of misclassification. Several legislators said the law existed but was under‑enforced in prior years; department officials said the unit had only one active investigator when the current commissioner arrived and that the General Assembly approved five new investigator positions for FY25 to expand enforcement. Officials also acknowledged that workers often do not come forward—many misclassified workers are paid off the books or fear losing jobs—making investigations dependent on interagency referrals and targeted enforcement. Commissioner Burke and staff said they are recruiting bilingual investigators and pursuing data‑sharing agreements to allow the agencies on the task force to triage leads and pursue audits more strategically.

Possible policy responses raised at the hearing included creating incentives for worker reporting (some states share a portion of fines with cooperating workers), mandatory reporting or stronger penalties for knowing violations, and ensuring state contractors are held accountable when state funds are involved. Secretary Wu said the task force’s forthcoming report will include recommendations for improved collaboration, accountability on state contracts and additional enforcement tools.","Department of Labor officials told the Senate Finance Committee they rebuilt a workplace‑fraud enforcement unit in 2024, opening more investigations and issuing 29 citations for non‑knowing misclassification violations. The department described a joint enforcement task force and plans to expand interagency data sharing and referrals.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6373696,"Maryland Labor Department: UI trust fund at $1.9 billion; models show solvency through 2028–29 under likely scenarios",1010,640000,1650000,"/Search/View?dp=1&key=2145628-05d956385dea7daa5eb069df45681e3c&start=640&end=1650","https://assets.pipeline.soar.com/2145628-05d956385dea7daa5eb069df45681e3c/thumbnail_640000.jpg","/articles/6373696/Maryland/Maryland-Labor-Department-UI-trust-fund-at-19-billion-models-show-solvency-through-202829-under-likely-scenarios","https://secure.pipeline.soar.com/6373696-21004fe283c9585d716b14d3adb71e0d/orig.mp4?Expires=1771229297&Signature=hAKIgZ-H8yY5uve0edGKoG8D~wztk8-Y9Pj5YGpnuYCvIUUILu59ONun-J~yG2m60rla757OqK--q0oSWSenDJD29FaCXrjjbTJPiGVlVrEGAoD7eJneYHDBAlYhTm3zHBKLsltdVHJQCgYdul5L0P-GM6KVtmMlo5Xwlpeyv~HOxmg1mAstbFN35NiYdzZeThQwoylFS56f81BVP2IN-eI0utj1SbHDGSPaI-x9Z8NVCawmqM3GoaDVFz19W7P5jP6oYAWS3xHQVJ8MLS41k-6TZnsKYfN1PfkKt8o2HLcQ-1uSogKGiIc~W2LuJpsc4Kpvyw5sF6IP~QOA0Lbc~Q__&Key-Pair-Id=KUT5TJCACFTXG","The Maryland Department of Labor told the Senate Finance Committee on Jan. 22 that the state’s Unemployment Insurance Trust Fund balance is about $1.9 billion and that modeling shows the fund remains solvent for several years under a range of economic scenarios.

Department officials said the central solvency metric is the average high-cost multiplier, which measures how many years of benefits the fund could pay during a “typical” recession. Chief economist Mike Sires said the department’s modeling, built on the U.S. Department of Labor’s UNIS model, finds the AHCM currently above the target of 1 and—under an unemployment rate that peaks near 3.75%—would hold above 1 through about 2028–29. If unemployment rises toward a historical average of about 5%, the AHCM declines more quickly in later years.

Why it matters: a higher AHCM reduces the risk the state will need federal loans or emergency infusions during a downturn and lowers the likelihood of sharp tax increases for employers. Secretary Wu told the committee the department undertook the modeling after requests from lawmakers to see long-term outcomes and to test policy changes.

Officials described three levers lawmakers have asked the department to model. One is shifting the base tax table (moving tax table A up to table B as the floor), which raises revenue and improves solvency in the model. A second option modeled in detail—proposed jointly by legislators on both sides of the aisle—would change benefit and contribution parameters: set the maximum weekly benefit at 50% of the average weekly wage, increase and index the dependent allowance to $25, and change the taxable wage base to 20% of average annual wages phased in over several years. Under that package, Sires said the AHCM in the department’s projection rises substantially (the department modeled an AHCM increase into the low- to mid‑2 range under a tight labor market).

The department also flagged structural pressures on solvency: historically low unemployment (about 3.1% as of November 2024), rising average weekly benefits because of wage growth and inflation, and a taxable wage base that has not been adjusted in decades. Committee members and department staff discussed the historic timing: officials said Maryland’s maximum weekly UI benefit is $430 and has not been updated in more than 20 years; the taxable wage base was last changed in 1992 to $8,500, a fixed statutory number that does not automatically index to wages.

Department leaders also warned that administering UI has become more expensive. Secretary Wu said the federal government has reduced some administrative reimbursements and pandemic-era fraud has required sustained investments in identity verification and cybersecurity. The department proposed a small new administrative fee—0.15% of taxable wages, which staff estimated would amount to a maximum of about $13 per employee per year at the highest end—to cover program administration because federal and ARPA backstops used in prior years are no longer available.

Committee members asked detailed operational questions: how long benefit durations run (staff said the typical maximum is 26 weeks absent federal emergency extensions) and whether employees could be asked to contribute to UI (department staff said federal rules limit states’ ability to use an employee payroll tax for regular UI benefits). Lawmakers also discussed options for funding benefit increases, including shared employer–employee contributions and moving employers between tax tables to make up the difference.

The department said the UNIS-based results are preliminary and that it will refine the model; staff offered to run additional scenarios if the committee identifies specific policy options to test. Secretary Wu stressed the department will return with more detailed numbers for any statutory changes lawmakers consider.","The Maryland Department of Labor told the Senate Finance Committee the state's Unemployment Insurance Trust Fund holds about $1.9 billion. Department economists presented modeling showing the fund is solvent through about 2028–29 under a tight labor-market scenario, and described policy options that would raise long-term solvency.","actionData","errors"]

Article not found

Maryland outlines timeline for Family and Medical Leave Insurance; contributions to begin in 2025, benefits in 2026

Maryland ramps up enforcement of Workplace Fraud Act; 29 citations issued in 2024, task force report due

Maryland Labor Department: UI trust fund at $1.9 billion; models show solvency through 2028–29 under likely scenarios