MD clarifies overlapping leave obligations for employers

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Maryland lawmakers have taken a step to reduce employer confusion surrounding parental leave obligations. On May 6, 2025, Governor Wes Moore signed Senate Bill 785, amending the Maryland Parental Leave Act to exclude employers covered by the federal Family and Medical Leave Act from state parental leave requirements.

The amendment addresses a long-standing issue of overlapping legal obligations that could arise when employers hovered near the 50-employee threshold, an issue that left some Maryland businesses unsure which law applied to them, or whether both did.

Background: What is the Maryland Parental Leave Act?

The MPLA, codified as Section 3-12 of Maryland’s Labor and Employment Code, was enacted to provide parental leave rights to employees at smaller businesses not covered by the FMLA. Specifically, the MPLA requires covered employers to provide eligible employees with up to six weeks of unpaid parental leave for the birth, adoption, or foster placement of a child. To be eligible for unpaid parental leave under the MPLA, an employee must: (1) apply for leave; (2) be an employee of a covered employer; and (3) have worked for that employer for at least 12 months and at least 1,250 hours in the past 12months. The statute applies to Maryland employers with at least 15 but fewer than 50 employees for each “working day during each of 20 or more calendar workweeks in the current or preceding calendar year.”

The FMLA, conversely, applies to employers with 50 or more employees and allows qualified employees up to 12 weeks of unpaid leave for qualifying events, which also include birth, adoption or foster placement of a child, among others. Similar to the MPLA, the FMLA measures how many employees a company employs by looking at how many were employed in 20 or more workweeks in the preceding or current year.

The problem: Overlapping coverage and compliance confusion

Although the MPLA was intended to apply to smaller employers not covered by the FMLA in order to provide parental leave to employees of such smaller companies, there have been occasions of overlap, where both laws apply to companies that change in size. For example, currently, if a Maryland employer has 47 employees for part of the year (or the preceding year) but later expands and exceeds the 50-employee threshold in the same or following year, it may fall under both the MPLA and FMLA.

Employers caught in the gray area between the MPLA and FMLA often faced the challenge of navigating two similar but distinct legal frameworks for the same type of leave. The slight differences in eligibility and compliance requirements created legal ambiguity and increased the risk of missteps, particularly for businesses experiencing sudden growth or workforce fluctuations.

What Senate Bill 785 changes

To address this overlap, Governor Moore signed SB 785, which was sponsored by Senator Justin Ready and amends the definition of “employer” under the MPLA to exclude any employer covered by the FMLA in the current year, effectively exempting FMLA-covered employers from Maryland’s parental leave requirements. The law goes into effect October 1, 2025.

The bill was one of a number of measures signed into law by Gov. Wes Moore recently that impacts employers across the state. Ultimately, these laws, including SB 785, touch on a wide range of employment-related issues from non-compete agreements, worker classification issues, pay transparency, and family leave.

The MPLA amendment serves to help employers avoid potential confusion regarding dual leave coverage for their employees if an employer is subject to the FMLA. By resolving the ambiguity in coverage between the MPLA and FMLA, SB 785 provides a clear line of responsibility for employers and helps ensure that Maryland workers still receive appropriate job-protected leave based on the size of their employer.

Employer takeaways: What should you do?

The updated MPLA definition of employer provides a clear guideline about employees’ rights and employer obligations concerning parental leave in Maryland. This change is seemingly part of Maryland’s broader effort to reform employment law in the state.

As the October 2025 effective date approaches, employers should take proactive steps to ensure compliance:

• Review Current Leave Policies: Evaluate and update existing leave policies to be sure they are aligned with statutory obligations, including eligibility criteria and accrual practices.
• Verify Employee Headcount: Carefully assess employee numbers, as coverage under the amended statute depends on whether the business meets specific headcount thresholds.
• Update Internal Protocols: Ensure that HR systems, employee handbooks, and onboarding materials reflect the new definition and any corresponding leave entitlements.
• Seek Legal Guidance: Consult with experienced employment counsel to interpret how the revised statute may impact your business operations and to address any compliance gaps ahead of the deadline.

Randolph Sullivan is a Senior Attorney at Hunton Andrews Kurth and can be reached at [email protected]. Andrea Oguntula is an Associate at Hunton Andrews Kurth and can be reached at [email protected].