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Round Two: Maryland Governor Unveils New Paid Leave Proposal


Readers might remember that earlier this year, Maryland Governor Larry Hogan vetoed the Maryland Healthy Working Families Act which would have required businesses in the state with at least 15 employees to provide five paid sick days a year.  That legislation, supported by Democrats, met staunch resistance among business groups and Republicans.  Although Governor Hogan, a Republican, vetoed the bill and stalled the passage of paid leave, Democrats have not been deterred.  In fact, Democrats in the state have indicated that they intend to attempt to override the Governor's veto when the legislature reconvenes in January.  Assuming Democrats vote along party lines, they appear to have enough votes to override Governor Hogan's veto and make the Maryland Healthy Working Families Act a reality.

Notwithstanding the (likely) override of Governor Hogan's veto by Democrats, late last month, the Governor announced a new piece of paid leave legislation, the Paid Leave Compromise Act of 2018, which he intends to have taken up when the Maryland General Assembly begins its 2018 session on January 10, 2018.  Under this proposed legislation, businesses in the state with at least 25 employees would be required to offer paid leave, with the rule being phased in over three years.  The Paid Leave Compromise Act of 2018 would also provide certain businesses with a waiver if they could prove that providing sick leave would cause a significant financial hardship.

While Democrats have indicated they are open to discussing proposed tax credits for paid leave with the Governor, they have also signaled that they are ready and willing to override his veto in January.  At this point, the Governor is in a tough spot as even if he can get Democrats to listen to his position and at least consider the possibility of tax credits and/or the Paid Leave Compromise Act of 2018, Democrats can simply wait him out and override his veto once the new legislative session starts in a few weeks.

Advantage:  Maryland Democrats.


For additional information:   https://www.washingtonpost.com/local/md-politics/2017/11/28/e5219750-d458-11e7-b62d-d9345ced896d_story.html?utm_term=.a6fa4778a327

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