Note: House Economic Matters Committee to Hold Hearing on HB 98 on March 6, 2018, 1:00 PM
“The Paid Leave Compromise Act of 2018 will provide Marylanders with paid sick leave - no questions asked. Just as we did last year, we will be starting the legislative session by proposing common sense legislation designed to extend paid sick leave to Maryland workers without crushing small businesses and killing jobs.” - Governor Larry Hogan, November 28, 2017
Paid Leave Compromise Act Of 2018
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. “...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.” (“House Bill 98,” Maryland General Assembly, 1/12/18)
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.” (“House Bill 98,” Maryland General Assembly, 1/12/18)
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…” (“House Bill 98,” Maryland General Assembly, 1/12/18)
Governor Hogan Is Calling On The General Assembly To Pass His Companion Legislation, The Small Business Relief Tax Credit, To Ease The Burden On Small Businesses And Cover More Workers
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 Has Received Bipartisan Support For His Proposals
Senator Thomas "Mac" Middleton Has Stated That The Governor's Small Business Tax Credit Proposal "Makes A Lot Of Sense." “He said he would entertain changes. He praised Hogan's tax credit plan as ‘making a lot of sense.’” “Middleton said he is open to discussing Hogan’s proposal for providing tax credits to offset the costs of providing paid sick leave.” (Erin Cox, “Dueling Paid Sick Leave Plans Under Debate,” The Baltimore Sun, 2/9/17; Josh Hicks, “Hogan Unveils New Paid Sick-Leave Measure In Hopes Of Avoiding Veto Override,” The Washington Post, 11/28/17)
The Baltimore Sun Editorial Board: "[T]he report Gov. Larry Hogan’s administration released about paid sick leave in Maryland makes some good points and contains some good ideas — including a few that are actually more favorable to workers than the ‘horrible’ bill he vetoed this spring." (Editorial, “The Sick Leave Showdown,” The Baltimore Sun, 11/29/17)
Capital Gazette Editorial Board: “In truth, Hogan’s proposal is superior to the Democrats’ legislation in several ways, not just in offering tax credits but in streamlining the paperwork and allowing the accrued leave to be used for any reason — a simple, nonintrusive policy toward which many employers are moving anyway.” (Editorial, “There’s Room For Compromise On Paid Sick Leave,” Capital Gazette, 12/1/17)
Carroll County Times Editorial Board: “The bill, which Hogan plans to introduce on the first day of the 2018 session, contains a number of good ideas that Maryland Democratic legislators would be wise to consider…” (Editorial, “Hogan’s Paid Sick Leave Proposal Has Merit,” Carroll County Times, 9/29/17)
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. “...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.” (“House Bill 98,” Maryland General Assembly, 1/12/18)
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.” (“House Bill 98,” Maryland General Assembly, 1/12/18)
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…” (“House Bill 98,” Maryland General Assembly, 1/12/18)
Governor Hogan Is Calling On The General Assembly To Pass His Companion Legislation, The Small Business Relief Tax Credit, To Ease The Burden On Small Businesses And Cover More Workers
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 Has Received Bipartisan Support For His Proposals
Senator Thomas "Mac" Middleton Has Stated That The Governor's Small Business Tax Credit Proposal "Makes A Lot Of Sense." “He said he would entertain changes. He praised Hogan's tax credit plan as ‘making a lot of sense.’” “Middleton said he is open to discussing Hogan’s proposal for providing tax credits to offset the costs of providing paid sick leave.” (Erin Cox, “Dueling Paid Sick Leave Plans Under Debate,” The Baltimore Sun, 2/9/17; Josh Hicks, “Hogan Unveils New Paid Sick-Leave Measure In Hopes Of Avoiding Veto Override,” The Washington Post, 11/28/17)
The Baltimore Sun Editorial Board: "[T]he report Gov. Larry Hogan’s administration released about paid sick leave in Maryland makes some good points and contains some good ideas — including a few that are actually more favorable to workers than the ‘horrible’ bill he vetoed this spring." (Editorial, “The Sick Leave Showdown,” The Baltimore Sun, 11/29/17)
Capital Gazette Editorial Board: “In truth, Hogan’s proposal is superior to the Democrats’ legislation in several ways, not just in offering tax credits but in streamlining the paperwork and allowing the accrued leave to be used for any reason — a simple, nonintrusive policy toward which many employers are moving anyway.” (Editorial, “There’s Room For Compromise On Paid Sick Leave,” Capital Gazette, 12/1/17)
Carroll County Times Editorial Board: “The bill, which Hogan plans to introduce on the first day of the 2018 session, contains a number of good ideas that Maryland Democratic legislators would be wise to consider…” (Editorial, “Hogan’s Paid Sick Leave Proposal Has Merit,” Carroll County Times, 9/29/17)
5 comments:
Anyone expect compliance by Ocean City government? Ha!
Okay, so I employ 50 people at $1,000 per week. That means I have to basically give away $50,000 a year in company profits without ANY return on investment.
If I sell 500 widgets a year, I'll have to charge $100 more per widget just to break even.
Thanks, Larry, and many thanks from all my customers who are now buying their widgets in Delaware, West Virginia, Virginia and elsewhere. Now my sales are cut in half and I have to charge $200 more for each one?
Maybe I should just go make them in another state... after all, it's my goal to give my customers a good value and be competitive with other widget makers.
March 7, 2018 at 6:32 AM:
Hey Steve,
And I'm sure you don't lose anything if you take time off because you are sick, or need to see a doctor. I'm sure all your employees will continue to make money for you even when you are not there. I'd hate to work for your greedy arse, and you ARE the reason for legislation like this. I don't feel sorry for you one little bit. Go to another state to exploit your employees. Maryland won't care, and neither will your employees. Your threat to go to another state is an empty one. The cost of relocation will be far greater than any savings from denying your employees time off for sick leave. Even Steve is not that stupid, right? Do the right thing, and quit complaining.
Company we work for here in Sby renamed our "Vacation" to "PTO" days.
Yup, that's exactly what will happen. Vacation time will be traded for personal time. Just rename it. FU, 11:04, if you don't like it, QUIT! there's a long file of applications in my file cabinet and newbies don't get vacation time for a couple of years.
I'm smarter than you, that's why I own the company and well, you DON'T!
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