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Governor Hogan Proposes Alternative Paid Sick Leave Bill

Wed, Nov 29, 2017

Governor Hogan is proposing “The Paid Leave Compromise Act of 2018” as emergency legislation on the first day of the 2018 Maryland General Assembly Session. The bill, phased in over three years, would apply to employers with 50 or more employees in 2018, employers with 40 or more employees in 2019, and employers with 25 or more employees in 2020.

Under the proposal, businesses would be required to provide employees with at least 40 hours of paid sick leave per year. The Governor’s bill includes a provision to allow businesses that can demonstrate a significant financial hardship to apply for a hardship waiver, exempting them from the paid sick leave requirement.

Governor Hogan also announced a companion bill, which would provide $100M in tax incentives to small businesses to offset the costs of providing employees with paid sick leave.

Earlier this year, Governor Hogan vetoed the Maryland Healthy Working Families Act, a bill that would have required employers with 15 or more full-time employees to provide workers with at least five days of sick and safe leave per year.  The General Assembly could override the Governor’s veto when it reconvenes in January.