Maryland Passes Parental Leave Act

Author: Gloria Ju

May 14, 2014

On May 5, Maryland Governor Martin O'Malley signed into law the Parental Leave Act (SB 737). Effective October 1, 2014, the Parental Leave Act applies to employers with 15 to 49 employees. The Act allows eligible employees to take up to six weeks of unpaid leave in any 12-month period for:

  • The birth of the employee's child; or
  • The placement of a child with the employee for adoption or foster care.

In order to be eligible for parental leave, an employee must have worked for the employer for at least 12 months and have worked at least 1,250 hours during the previous 12 months. Employees may be required to provide 30 days' written notice of the intent to take parental leave, except in the event of a premature birth, unexpected adoption or unexpected foster placement.

Leave may be denied if it would result in an undue burden on the employer (i.e., "the denial is necessary to prevent substantial and grievous economic injury to the employer's operations"). However, the employer must notify the employee of the denial before the leave begins.

If an employer provides paid leave, the employer may require the employee - or the employee may elect - to substitute the paid leave for unpaid parental leave.

During parental leave, an employee may be terminated only for cause. Also, group health coverage must be maintained in the same manner as if the employee had not taken leave. Premiums may be recovered by the employer if the employee fails to return to work after the leave ends.

At the end of leave, an employee must be reinstated to the same or an equivalent position, unless the employer determines that restoring the employee would cause "substantial and grievous economic harm to the employer's operations." The employer must notify the employee of the intent to deny restoration when it determines that economic injury would occur.

Like other similar laws, Maryland's Parental Leave Act includes retaliation protections for employees. Specifically, the law prohibits an employer from terminating or otherwise discriminating against employees who:

  • Request or take parental leave;
  • Make a complaint to the employer, the Labor Secretary or other person;
  • Bring an action under the law or proceeding related to the law; or
  • Testify in or will testify in an action or proceeding.

The law is not intended to discourage Maryland employers from adopting or retaining leave policies that are more generous than the law requires. Maryland employers should review their existing policies and practices to ensure timely compliance with applicable federal, state and local leave laws.