BREAKING NEWS ALERT: Senate Finance Committee Votes To Delay Implementation Of Burdensome Paid Sick Leave Measure

Governor Hogan Calls On Legislators To Pass Tax Relief For Small Businesses Offering Paid Sick Leave

“Our administration continues to remain ready and willing to meet with them at any time, to engage in open and honest dialogue in order to reach a compromise on this critical issue. The issue of paid sick leave is much too important, and the impact is too far-reaching for us to risk getting it wrong.” - Governor Larry Hogan, November 28, 2017

Legislators Voted To Delay Implementation Of Paid Sick Leave Legislation

Senate Finance Committee Voted To Advance Legislation To Delay The Implementation Of Burdensome Paid Sick Leave Measure Until July 1, 2018.

Governor Hogan Calls On Legislators To Focus Their Attention On Passing His Small Business Relief Tax Credit To Ease The Burden On Small Businesses

Governor Hogan’s Proposed Legislation Provides $100 Million Over Five Years In Tax Credits To Businesses With Fewer Than 50 Employees That Provide Paid Leave Benefits To Their Employees. “The Department shall: approve all applications that qualify for a tax credit certificate under this subsection on a first-come, first-served basis… The total amount of credit certificates issued by the Department under this subsection may not exceed: for taxable year 2018, $5,000,000; for taxable year 2019, $15,000,000; for taxable year 2020, $35,000,000; for taxable year 2021, $75,000,000; and for taxable year 2022 and each taxable year thereafter, $100,000,000.” (“Senate Bill 134,” Maryland General Assembly, 1/11/18)
The Governor’s Proposal Provides A Tax Credit Up To $1,000 Per-Employee To Small Businesses Employing Less Than 50 Workers. “A small business that hires a qualified employee may claim a credit against the State income tax in the amount stated on the tax credit certificate issued under subsection (d) of this section. For each taxable year, the credit allowed under this section may not exceed the lesser of: an amount that equals $1,000 for each qualified employee; or an amount that equals the total amount of qualified employer benefits accrued by all qualified employees of the small business.” (“Senate Bill 134,” Maryland General Assembly, 1/11/18)

Governor Hogan Offered A Common Sense, Balanced Measure To Extend Paid Leave Benefits To Marylanders, Without Crippling Small Businesses

Under Governor Hogan’s Proposal, Businesses With 25 Or More Employees Will Be Required To Offer Employees Paid Leave For Any Reason, No Questions Asked By 2020; Small Businesses Will Have Time To Prepare, As Paid Leave Benefits Will Be Phased In Beginning In 2018. “...An employer shall provide an employee with paid time off that is paid at the same wage rate as the employee normally earns and that an employee may use for any reason if, based on a calculation of the average monthly number of employees employed by the employer during the immediately preceding year: beginning January 1, 2018, the employer employs 50 or more employees; beginning January 1, 2019, the employer employs 40 or more employees; or beginning January 1, 2020, or any year thereafter, the employee employs 25 or more employees.” (“Senate Bill 135,” Maryland General Assembly, 1/11/18)
Governor Hogan’s Proposed Bill Strongly Protects The Privacy Of Individuals; Employees Will Not Be Forced To Disclose Sensitive Personal Or Health-Related Information, Including Details About Domestic Violence Or Sexual Assault To Use Their Paid Leave. “An employer may not require disclosure of details relating to domestic violence, sexual assault, sexual contact, or stalking or details of an employee’s or an employee’s family member’s health information as a condition of providing, earning, accruing, or using paid time off under this subtitle.” (“Senate Bill 135,” Maryland General Assembly, 1/11/18)

Governor Hogan’s Compromise Proposal Includes Language Originally Introduced By Democratic Senator Bobby Zirkin, Which Allows Qualifying Businesses That Can Demonstrate A Significant Financial Hardship To Be Exempt From Having To Provide Paid Leave Benefits By Applying For A Hardship Waiver. “An employer may apply to the Department for a hardship waiver form the requirements of this subtitle. The Department shall waive the requirements of this subtitle for an employer that can provide specific and demonstrated evidence that a significant financial hardship will result from the employer’s compliance with this subtitle.” (“Senate Bill 135,” Maryland General Assembly, 1/11/18)

The Paid Leave Compromise Act Of 2018 Protects Business Owners Acting In Good Faith From Facing Severe Civil Penalties For Potential Record Keeping Errors. “An employer shall keep for at least 3 years a record of; paid time off accrued by each employee… The Commissioner may waive a civil penalty assessed under this subtitle if the penalty was assessed for a violation that was due to an error caused by a third-party payroll service provider with whom the employer in good faith contracted for services… In determining whether there is a violation of this subtitle, the Commissioner shall consider whether the employee has been deprived of a right under this subtitle. In determining the amount of any civil penalty to be imposed, the Commissioner shall consider:... the employer’s good faith in complying with this subtitle…” (“Senate Bill 135,” Maryland General Assembly, 1/11/18)

Legislators Have Agreed That There Needs To Be Fixes To The Burdensome Paid Sick Leave Measure

Senator Thomas “Mac” Middleton: “I Agree, We Need More Time.” SENATOR MIDDLETON: “One of the things I want to touch on is, ‘we need more time.’ And I agree, we need more time. Under law when a bill is overwritten it goes into effect 30 days later… But most importantly just to provide that guide for the businesses so they don't have to go out and hire somebody to say, ‘how do we figure this out?’ Put it right there, put it out there for them so they do. And also we can provide the technical support. We’re looking - we agree with that, we need more time.” (“Proceedings - Senate,” Maryland General Assembly, 1/12/18)
Senator Middleton Made It Clear That He Wants To Work With Governor Hogan And That Discussions Discussions Held On Ways To Address Flaws And Improve Flawed Paid Sick Leave Legislation. SENATOR MIDDLETON: “One thing, I want to work with the governor. The question that’s very important to the Chairman of the Judicial Proceedings Committee, ‘is this the end, is this the end of discussion?” Absolutely not.” (“Proceedings - Senate,” Maryland General Assembly, 1/12/18)

Senator Bobby Zirkin Called On Members Of The General Assembly To Continue Conversation On Fixing The Passed Paid Sick Leave Legislation, And Reaching Compromises With Governor Hogan. SENATOR ZIRKIN: “So you know, one of the things I did here on the floor though, and I hope the chairman will address it, is like I heard it from the House too, really troubles me, which is the comment, I don’t remember who made it is, ‘too late, too late. The governor didn’t do whatever last year within the committee. Can’t have anymore conversation about it.’ And if that’s the case, then I’ll stick with my no vote because it is never too late to not, you know, correct something, change something, modify something. There are some things in the Governor’s bill that I really like. One of them was the amendment that, I don’t know if it was particularly well drafted that, I tried last year that would say that small businesses could at least get a deferment if they had contracts that would hurt them. He put that in his bill.” (“Proceedings - Senate,” Maryland General Assembly, 1/12/18)
Senator Zirkin Stated That Marylanders “Could Get Hurt” If Further Discussion On The Law Was Not Permitted And If The Implementation Of The Law Was Not Delayed. SENATOR ZIRKIN: “One of the groups that came to me over the summer the chairman talked about this morning I know he cares a great deal about, home healthcare workers. It’s a business in my office and it’s small business, and this is really going to hurt them. They also have contracts they can’t get out of. And so if this went in right now and they didn’t get some relief, they could get hurt. Which is why I appreciate the chairman bringing up the fact that there will be some looks at if there are some problems. That’s what I need to hear in order to vote yes, that this is not the last say on this because if it is, I think we’re going to hurt some people, and clearly that’s not what anybody wants to do down here.” (“Proceedings - Senate,” Maryland General Assembly, 1/12/18)