Subject to paragraph (2) of this subsection, beginning on a date not earlier than January 1, 2027, but not later than January 3, 2028, determined and announced by the Secretary, a covered individual taking leave from employment may submit a claim for benefits: to care for a newborn child of the covered individual during the first year after the child’s birth; or because a child is being placed for adoption, foster care, or kinship care with the covered individual or to care for or bond with the child during the first year after the placement; to care for a family member with a serious health condition; to attend to a serious health condition that results in the covered individual being unable to perform the functions of the covered individual’s position; to care for a service member with a serious health condition resulting from service in the uniformed services for whom the covered individual is next of kin; or to attend to a qualifying exigency arising out of the deployment of an eligible service member who is a family member of the covered individual. Except as provided under subparagraph (ii) of this paragraph, if the need to use leave is foreseeable, an employer may require a covered employee taking leave under this title to provide the employer with written notice of the covered employee’s intention to take leave at least 30 days before commencing the leave. If the need to use leave is not foreseeable, the covered employee shall: provide notice to the employer as soon as practicable; and generally comply with the employer’s notice or procedural requirements for requesting or reporting other leave, if those requirements do not interfere with the covered employee’s ability to use leave for which benefits may be paid under this title. Subject to paragraph (3) of this subsection, an individual may file an application for benefits within 60 days before the anticipated start date of the leave for which benefits may be paid under this title, but not later than 60 days after the start date of the leave. To be considered complete, an application shall contain all information required by the Department. The Department shall waive the filing deadline established under paragraph (1) of this subsection for good cause. If the covered individual does not have good cause for the delay in completing the claim application, the Secretary may delay or deny benefits under this title. Subject to paragraphs (2) and (3) of this subsection, a covered individual may take the leave for which the individual is eligible for benefits under subsection (a) of this section on an intermittent leave schedule. If leave is taken on an intermittent leave schedule, the covered individual shall: make a reasonable effort to schedule the intermittent leave in a manner that does not unduly disrupt the operations of the employer; and provide the employer with reasonable and practicable prior notice of the reason for which the intermittent leave is necessary. A covered employee may not take intermittent leave in an increment of less than 4 hours. If leave is taken on an intermittent leave schedule, an employer may not reduce the total amount of leave to which the covered individual is entitled beyond the amount of leave actually taken.

Except as provided in paragraph (2) of this subsection, a covered individual may not receive more than 12 weeks of benefits in an application year. A covered individual may receive an additional 12 weeks of benefits if the covered individual during the same application year: received benefits because the covered individual was eligible for benefits under § 8.3–701(a)(1)(i) of this subtitle; and becomes eligible for benefits under § 8.3–701(a)(1)(iii) of this subtitle; or received benefits because the covered individual was eligible for benefits under § 8.3–701(a)(1)(iii) of this subtitle; and becomes eligible for benefits under § 8.3–701(a)(1)(i) of this subtitle. If a covered individual takes leave for which the covered individual is receiving benefits under this title, the leave shall run concurrently with eligible leave that may be taken by the covered individual under the federal Family and Medical Leave Act. The Department may count the leave taken under the federal Family and Medical Leave Act against a covered individual’s maximum duration of leave for which benefits are available under this title in an application year for the same purpose, if: an employer designates a period of leave as covered by the federal Family and Medical Leave Act for a covered individual who would also qualify for benefits under § 8.3–302 of this title; the employer informs the covered individual of the individual’s eligibility for benefits under this title; and the employee declines to apply for benefits under this title. A covered individual may not be required to use or exhaust paid vacation, paid sick leave, or other paid time off under an employer policy before, or while, receiving benefits under this title. A covered individual and an employer may agree to use paid vacation, paid sick leave, or other paid time off while a covered individual is receiving benefits available under this title to replace the covered individual’s wages up to 100% of the covered individual’s average weekly wage during the period of leave for which benefits are received under this title. Notwithstanding paragraph (1) of this subsection, an employer may require that benefit payments under this title be made concurrently, or otherwise coordinated with payments made or leave that is allowed under the terms of a separate employer–provided leave policy due to parental care, family care, or uniformed services leave or under a disability policy. This subsection may not be construed to reduce any weeks of leave for which benefits may be paid under this title. Except as provided in paragraph (2) of this subsection, an individual receiving benefits under Title 8 of this article or wage replacement benefits under Title 9 of this article is not eligible to receive benefits under this title. An individual receiving compensation for a permanent partial disability under Title 9 of this article may be eligible for benefits under this title.

For the purposes of this section: the covered employee’s average weekly wage shall be calculated as the total wages received by the covered employee in the highest of the previous four completed calendar quarters that immediately precede the anchor date and for which quarterly reports have been required, divided by 13; and the State average weekly wage shall be the wage calculated under § 9–603 of this article. Subject to paragraphs (2) and (3) of this subsection, the weekly benefit amount payable to a covered employee under this title shall be: if the covered employee’s average weekly wage is 65% or less of the State average weekly wage, 90% of the covered employee’s average weekly wage; or if the covered employee’s average weekly wage is greater than 65% of the State average weekly wage, the sum of: 90% of the covered employee’s average weekly wage up to 65% of the State average weekly wage; and 50% of the covered employee’s average weekly wage that is greater than 65% of the State average weekly wage. The benefit paid under this title and any additional paid leave cannot total more than 100% of the covered employee’s average weekly wage. The weekly benefit amount payable under paragraph (1) of this subsection: shall be at least $50; and may not exceed: for the period beginning on the date announced by the Secretary under § 8.3–701(a)(1) of this subtitle and ending December 31, 2028, both inclusive, $1,000; and for the 12–month period beginning January 1, 2029, and each subsequent 12–month period, the amount determined and announced by the Secretary under paragraph (4) of this subsection. In this paragraph, “Consumer Price Index” means the Consumer Price Index for All Urban Consumers for the Washington–Arlington–Alexandria, DC–VA–MD–WV metropolitan area or a successor index published by the federal Bureau of Labor Statistics. Subject to subsection (e) of this section, for the 12–month period beginning January 1, 2029, and each subsequent 12–month period, the maximum weekly benefit amount shall be increased by the amount, rounded to the nearest cent, that equals the product of: the maximum weekly benefit amount in effect for the immediately preceding 12–month period; and the annual percentage growth in the Consumer Price Index for the immediately preceding 12–month period, as determined by the Secretary under subparagraph (iii)1 of this paragraph. Beginning September 1, 2028, and on each subsequent September 1, the Secretary shall determine and announce: the annual percentage growth, if any, in the Consumer Price Index based on the most recent 12–month period for which data are available on September 1; and the maximum weekly benefit amount effective for the 12–month period beginning the immediately following January 1. Except as provided in paragraph (2) of this subsection, an increase in the weekly benefit amount under subsection (b)(4) of this section applies only to an application year with an anchor date that occurs on or after the date the increase becomes effective. If the leave for which benefits are being paid is being taken intermittently, an increase in the weekly benefit amount shall apply to a claim for benefits as specified in regulations adopted by the Department. The Department shall: notify the employer of a covered individual within 5 business days after the covered individual files a completed application for benefits under this title; notify the covered individual within 5 business days after the individual files an application, if the application is considered to be incomplete under § 8.3–701(b)(2) of this subtitle due to missing information that is necessary to complete the claim; approve or deny the claim and notify the covered individual and the covered individual’s employer within 10 business days after the covered individual files the completed application; make the first payment of benefits to a covered individual within 5 business days after the completed application is approved or the leave has started, whichever is later; and make subsequent payments at least every 2 weeks until the benefit period ends. In this subsection, “Board” means the Board of Public Works. Subject to paragraph (4) of this subsection, on or before September 1 each year, beginning in 2028, the Board shall determine whether the seasonally adjusted total employment from the Current Employment Statistics series as reported by the U.S. Bureau of Labor Statistics for the most recent 6–month period is negative as compared with the immediately preceding 6–month period. Subject to paragraph (4) of this subsection, the Board may temporarily suspend an increase in the maximum weekly benefit specified under subsection (b)(3)(ii) of this section if the Board determined under paragraph (2) of this subsection that the seasonally adjusted total employment is negative. If the seasonally adjusted total employment is negative, the Board may consider the performance of State revenues in the immediately preceding 6 months, as reported by the Office of the Comptroller, in determining whether to temporarily suspend an increase to the maximum weekly benefit specified under subsection (b)(3)(ii) of this section. If the Board temporarily suspends an increase to the maximum weekly benefit specified under subsection (b)(3)(ii)2 of this section: the maximum weekly benefit in effect for the period beginning the following January 1 shall remain the same as the rate that was in effect for the immediately preceding 12–month period; and the Board shall notify the Secretary that the maximum weekly benefit increase for the period beginning the following January 1 is suspended for 1 year. The Department shall announce the increase to the maximum weekly benefit specified under subsection (b)(3)(ii) of this section.

If the Internal Revenue Service determines that benefits paid under this subtitle are subject to federal income tax, at the time a covered individual files a new claim for benefits, the Department shall notify the covered individual that: the Internal Revenue Service has determined that the benefits are subject to federal income tax; there are requirements regarding estimated tax payments; the covered individual may elect to have federal income tax deducted and withheld from the benefits that the covered individual receives under this title at the rate specified in the Internal Revenue Code; and the covered individual is allowed to change a previously elected withholding status. If a covered individual elects to have federal income tax deducted and withheld under subsection (a)(3) of this section, the Department shall deduct and withhold an amount at the rate specified in the Internal Revenue Code in a manner required by the Internal Revenue Service. If the Department deducts and withholds federal income tax under paragraph (1) of this subsection, the amount deducted and withheld shall remain in the Fund until it is transferred to the Internal Revenue Service as a payment of income tax.

An employer authorized by the Secretary may satisfy the requirements of this title through a private employer plan consisting of employer–provided benefits or insurance through an insurer that holds a certificate of authority issued by the Maryland Insurance Commissioner if the private employer plan is provided to all of the employer’s eligible employees and meets or exceeds the rights, protections, and benefits provided to a covered employee under this title. To determine the benefit amount under a private employer plan, the weekly benefit amount shall be based on the average weekly wage earned from the employer sponsoring the private employer plan. Notwithstanding subparagraph (i) of this paragraph, if an individual has worked less than 680 hours for the employer sponsoring the private employer plan, the weekly benefit amount shall be based on the average weekly wage under § 8.3–703(a) of this subtitle. This subsection may not be construed to prevent a private employer plan from providing a benefit that is greater than that provided in § 8.3–703(a) of this subtitle. A private employer plan shall be filed with the Department for approval. The Secretary shall establish reasonable criteria for determining which employers are authorized to meet the requirements of this title through employer–provided benefits. The criteria established under subparagraph (i) of this paragraph may include the employer’s: number of employees; capitalization; bondedness; and status as a government employer. The Department may adopt regulations that establish reasonable application and application renewal fees for private employer plans under this section. An employer that provides covered employees with a private employer plan and an employee that is covered by a private employer plan are exempt from the contributions required under Subtitle 6 of this title. An employer that provides a private employer plan may not deduct from an employee more than 50% of the contribution amount set by the Department under § 8.3–601(b) of this title.

This section does not apply to an employer who is an individual with a developmental disability, and who self–directs services under the Maryland Medicaid Home– and Community–Based Services Waiver Program. Except as provided in subsection (c)(2) of this section, if a covered individual receives benefits under this title or takes leave from work for which benefits may be paid under this title, the employer of the covered individual shall, on the expiration of the leave, restore the covered individual to an equivalent position of employment. An employer may: during a period of leave from work for which benefits may be paid under this title, terminate employment of the covered individual taking the leave only for cause; and deny restoration of a covered individual’s position of employment under subsection (b) of this section if: the denial is necessary to prevent substantial and grievous economic injury to the operations of the employer; the employer notifies the covered individual of the intent of the employer to deny restoration of the covered individual’s position of employment at the time the employer determines the economic injury would occur; and if the leave has already begun in a case of leave from work for which benefits may be paid under this title, the covered individual elects not to return to employment after receiving notice of the employer’s intention to deny restoration of the covered individual’s position of employment.

If a covered individual is receiving benefits under this title or is taking leave for which benefits may be paid under this title, the employer of the covered individual shall continue any employment health benefits in the same manner as required under maintenance of health benefits in the federal Family and Medical Leave Act for the time period that the covered individual is absent from work or receiving benefits under this title.