New laws impact the payment of accrued leave and the use of paid time off

Maryland’s recent legislative session produces a mixed bag for employers. First, the good news, Maryland enacted legislation that clarifies when employers are required to pay employees accrued leave up to the separation from employment. The bill corrects a recent decision issued by the Maryland Court of Special Appeals which held that employers must pay employees for accrued vacation upon their separation from employment even where the employer has a policy, which has been communicated to its employees, stating that no such entitlement exists. The new law requires employers to pay out accrued paid leave upon termination of employment only to the extent provided in a written policy that is communicated to the employee prior to their termination. On a less favorable note, Maryland also enacted legislation entitled the Flexible Leave Act, which requires Maryland employers, who provide their employees with paid leave, to permit their employees to use that leave to care for ill family members defined as the employee's child, spouse or parent. While many employers already permitted employees to use their accrued leave for this purpose, some worry that the state mandate could lead to abuses. If you have any questions, please contact J. Nicole Windsor at Windsor@Bowie-Jensen.com