Paid Time Off (PTO) in Maryland
Leave Quota
Maryland does not impose a state mandated minimum quota for Paid Time Off (PTO). The allocation of PTO is at the discretion of the employer, often outlined in employment contracts or company policies. Typically, Maryland employers provide a baseline of 10 15 days of PTO for entry level employees, while more experienced employees or those in senior positions may receive 15-25 days annually. Some employers may combine vacation time, sick leave, and personal days under a single PTO umbrella, allowing more flexibility in how employees use their time off.
Federal employees and those covered under collective bargaining agreements may have specific leave quotas that differ from private sector employers. It is essential for both employees and employers to be aware of the company’s PTO structure to ensure that quotas are clearly communicated.
Accrual
Most employers in Maryland use an accrual based PTO system. This system allows employees to accumulate leave gradually throughout the year. For example, an employee might earn PTO at a rate of 1.5 days per month, which would add up to 18 days annually. The accrual rate may increase with tenure; for instance, after five years with the company, an employee may begin accruing PTO at a higher rate.
Employers may also have different policies on when new employees can start using accrued PTO. Some companies impose a waiting period, such as three or six months after the start date, before PTO can be used. It is common for employers to have a “use it or lose it” policy, meaning employees are encouraged to use PTO within the calendar year.
Rollover
Maryland leave laws allows employers the flexibility to determine whether unused PTO can be rolled over into the following year, and how much of it can carry over. The state’s laws do not require PTO rollover; thus, it is up to each employer to establish a policy. There are generally three types of PTO rollover policies:
No Rollover: Employees must use all their PTO within the calendar or fiscal year, or it will be forfeited. This “use it or lose it” policy is common among smaller companies.
Limited Rollover: Employers allow employees to carry over a set number of days or hours into the next year, with a cap. For example, an employee might be able to roll over 5 to 10 days of unused PTO, depending on the company policy.
Unlimited Rollover: Some companies allow employees to roll over their entire balance of unused PTO into the next year without limitations. However, these policies often come with stipulations that PTO usage must not exceed a certain number of days within the following year.
Employers must clearly communicate their rollover policies, as they affect how employees plan their time off. Employers may also cap the maximum number of days an employee can accrue in total, meaning that once an employee hits the cap, they will no longer earn additional PTO until they use some of their time.
Payment of Accrued, Unused Vacation on Termination
When an employee leaves a company, either voluntarily or involuntarily, Maryland law does not automatically require employers to pay out unused, accrued vacation or PTO, unless there is a written agreement or policy stating otherwise. In cases where an employer’s policy specifies that unused vacation will be paid upon termination, the company is legally obligated to comply with that policy.
Key considerations for payout on termination include:
- Written Policy: Employers who outline their policy regarding PTO payout upon termination in the employee handbook must adhere to it. If the handbook promises a payout, failure to do so could result in legal disputes.
- No Explicit Policy: If there is no explicit written policy regarding the payout of unused PTO, Maryland law leaves the decision to the employer. However, companies are advised to clarify this policy to avoid misunderstandings.
- Final Paycheck: In cases where a payout is required, the unused PTO amount should be included in the employee’s final paycheck. This is typically processed within the standard payroll period following the termination.
Strategies for Employers in 2025
Employers in Maryland can benefit from using PTO management tools like Day Off, which streamlines PTO tracking, accrual, and rollover management. Automated systems help ensure compliance with company policies and make it easier to manage the nuances of leave quotas, accrual rates, and payout obligations. Additionally, these systems can provide employees with visibility into their available PTO balance, making it easier to plan their time off and ensure they do not lose any accrued days due to “use it or lose it” policies.
Important Considerations for 2025
Clarity in PTO Policies: Clear communication regarding leave quotas, accrual, rollover, and payout of unused vacation is essential. Employees should have access to written policies in employee handbooks or contracts.
Balancing Employee Benefits with Business Needs: Employers should strike a balance between offering generous PTO policies that support work life balance and managing business operations effectively. For example, ensuring PTO requests align with business demand cycles can help minimize disruptions.
Legal Compliance: Although Maryland does not require PTO payout upon termination, employers should remain aware of any changes in state laws or federal regulations that might impact PTO policies in the future. Staying compliant helps prevent legal issues and promotes positive employer employee relationships.
Sick Leave in Maryland
Federal Laws
At the federal level, the United States does not have a universal law that mandates paid sick leave for all employees. However, there are specific federal laws that provide protections related to unpaid leave:
Family and Medical Leave Act (FMLA): The FMLA is a federal law that provides eligible employees with up to 12 weeks of unpaid, job protected leave per year for certain medical and family reasons. These reasons include:
- The employee’s own serious health condition.
- Caring for a spouse, child, or parent with a serious health condition.
- The birth or adoption of a child.
- Qualifying exigencies arising from a family member’s military service.
While FMLA does not provide paid sick leave, it ensures that employees retain their job and health insurance during the leave period. Employers covered under FMLA include public agencies and private sector employers with 50 or more employees within a 75-mile radius.
Federal Contractor Sick Leave: For employees working on federal contracts, Executive Order 13706, issued during the Obama administration, requires that federal contractors provide at least 7 days of paid sick leave per year. This paid sick leave can be used for personal illness, family illness, or domestic violence related issues. Contractors must accrue one hour of sick leave for every 30 hours worked, up to a minimum of 56 hours of paid sick leave annually.
Although these federal laws provide protections, they primarily focus on unpaid leave (FMLA) or are specific to certain types of employers (federal contractors). They do not establish a nationwide, paid sick leave mandate for all workers. As a result, state and local laws, such as those in Maryland, play a crucial role in determining paid sick leave rights for most employees.
State Laws
Maryland’s Healthy Working Families Act (HWFA) governs the sick leave policies for most employees in the state. This law mandates that employers provide paid sick leave to eligible employees, depending on the size of the company and other factors.
Key provisions of the Healthy Working Families Act for 2025:
Eligibility for Paid Sick Leave:
- Employers with 15 or more employees must provide paid sick leave.
- Employers with fewer than 15 employees must offer unpaid sick leave.
- Employees who work at least 12 hours per week are eligible for sick leave benefits.
Leave Quota:
- Employees accrue 1 hour of sick leave for every 30 hours worked, up to a maximum of 40 hours (5 days) of paid sick leave per year.
- Employees can carry over up to 40 hours of unused sick leave into the next year, but the total leave balance cannot exceed 64 hours at any time.
- For new hires, employers may require a waiting period of 106 calendar days before the employee can begin using accrued sick leave.
Use of Sick Leave:
- Employees can use sick leave for their own illness or medical care.
- They may also use it to care for an ill family member, including a child, spouse, parent, grandparent, or sibling.
- Sick leave can also be used for issues related to domestic violence, sexual assault, or stalking, such as attending court proceedings or obtaining medical treatment.
Rollover and Maximum Accrual:
- While employees can roll over up to 40 hours of unused sick leave into the next calendar year, the employer is not required to allow the total amount of sick leave to exceed 64 hours.
- Employers are permitted to offer more generous sick leave policies, but the HWFA sets these minimum standards.
Exemptions and Special Rules:
- Certain employees, such as those who work in the construction industry under a collective bargaining agreement, are exempt from this law.
- Additionally, temporary employees and independent contractors may not be eligible for these benefits.
Payment of Unused Sick Leave:
- Unlike PTO or vacation time, Maryland law does not require employers to pay out unused sick leave when an employee leaves the company, either through resignation or termination.
- However, if the employee is rehired by the same employer within 37 weeks, the previously accrued, unused sick leave must be reinstated.
Maternity, Paternity, FMLA in Maryland
Federal Laws
At the federal level, the primary law governing maternity and paternity leave is the Family and Medical Leave Act (FMLA). The FMLA provides eligible employees with up to 12 weeks of unpaid, job protected leave in a 12 month period for certain family and medical reasons, including:
- The birth of a child and care for the newborn within the first year.
- Placement of a child for adoption or foster care, and care for the newly placed child.
- The serious health condition of the employee or a family member (spouse, child, or parent).
Under FMLA, while the leave is unpaid, employees are guaranteed job protection, meaning they can return to the same or an equivalent position with the same pay, benefits, and terms of employment after the leave. Additionally, employers must maintain health insurance coverage for employees on FMLA leave under the same conditions as if they had continued to work.
To be eligible for FMLA leave, employees must:
- Work for an employer with 50 or more employees within a 75 mile radius.
- Have worked for the employer for at least 12 months.
- Have logged 1,250 hours of work in the 12 months preceding the leave.
While FMLA offers important protections, it is unpaid, which can be a significant barrier for families who need income during parental leave. In response to this gap, many states, including Maryland, have introduced additional laws to provide more comprehensive support for maternity, paternity, and family leave.
Additional State Laws
Maryland leave laws goes beyond the FMLA by providing additional protections and benefits for workers who need maternity, paternity, or family leave. In 2025, Maryland offers expanded family leave laws designed to support working parents and caregivers, addressing both paid leave and expanded coverage.
Maryland Family and Medical Leave Insurance Program (Time to Care Act):
Starting in 2025, Maryland’s Time to Care Act creates a state level paid family and medical leave insurance program. This program allows eligible employees to take paid family and medical leave for up to 12 weeks for:
- The birth, adoption, or foster placement of a child.
- Caring for a family member with a serious health condition.
- The employee’s own serious health condition.
- Certain situations related to a family member’s military deployment.
Under the Time to Care Act, employees will receive partial wage replacement while on leave. The amount of wage replacement is determined by the employee’s income, with lower income workers receiving a higher percentage of their wages, capped at a maximum benefit amount.
The program is funded through employer and employee contributions, similar to unemployment insurance. Both employers and employees will begin contributing to the program in 2023, and benefits will become available in 2025.
Expanded Coverage for Smaller Employers:
While the FMLA applies only to employers with 50 or more employees, Maryland’s Time to Care Act covers all employers, regardless of size. This means that employees of smaller companies, who may not qualify for FMLA, are still eligible for Maryland’s paid family and medical leave benefits.
Additional Leave for Pregnancy and Childbirth Related Disabilities:
Maryland law also requires employers to provide reasonable accommodations for pregnant employees and those who have recently given birth. Under the Maryland Fair Employment Practices Act (FEPA), pregnancy related conditions are considered temporary disabilities. Employers must provide reasonable accommodations, such as:
- Light duty.
- More frequent breaks.
- Leave to recover from childbirth, in addition to any family leave provided under FMLA or Maryland’s Time to Care Act.
The duration of this leave depends on the employee’s condition, but it can extend beyond the standard 12 weeks of FMLA leave in some cases.
Job Protection and Continuation of Benefits:
Like FMLA, Maryland’s family leave law ensures that employees who take leave are entitled to job protection. They must be reinstated to the same or an equivalent position when they return to work. Additionally, employers must maintain the employee’s health benefits during the leave period under the same conditions as if the employee had continued to work.
Interplay Between Federal and State Laws:
Maryland’s family leave program works alongside FMLA, providing more robust benefits. If an employee is eligible for both FMLA and Maryland’s paid family leave, they can use the Maryland program to receive paid benefits during their leave. Employees cannot “double dip,” meaning the 12 weeks of leave under FMLA and Maryland’s law run concurrently rather than consecutively. However, employees may be able to extend their time off if they qualify for additional accommodations due to pregnancy related conditions.
Paternity Leave:
Maryland’s Time to Care Act and the FMLA apply equally to fathers, ensuring that both parents have access to job protected time off after the birth, adoption, or placement of a child. Fathers can use the leave to bond with their child, support their partner during recovery, and assist with caregiving duties. This provision promotes gender equality in caregiving responsibilities and encourages a more balanced approach to parental leave.
Bereavement Leave in Maryland
Jury Duty Leave in Maryland
Military Leave in Maryland
Voting Leave in Maryland
Maryland State Holidays in 2025
| Holiday | Date |
|---|---|
|
New Year’s Day |
Wednesday, January 1 |
|
Martin Luther King Jr. Day |
Monday, January 20 |
|
Presidents’ Day |
Monday, February 17 |
|
Maryland Day |
Tuesday, March 25 |
|
Memorial Day |
Monday, May 26 |
|
Juneteenth National Independence Day |
Thursday, June 19 |
|
Independence Day |
Friday, July 4 |
|
Labor Day |
Monday, September 1 |
|
Columbus Day |
Monday, October 13 |
|
Veterans Day |
Tuesday, November 11 |
|
Thanksgiving Day |
Thursday, November 27 |
|
Day After Thanksgiving |
Friday, November 28 |
|
Christmas Day |
Thursday, December 25 |
FAQ
What types of employee leave are recognized in Maryland?
Employees in Maryland may be entitled to various types of leave, including paid sick and safe leave, family and medical leave, vacation leave, jury duty leave, bereavement leave, voting leave, and military leave. Maryland provides additional state level protections beyond federal law through the Maryland Healthy Working Families Act.
Does Maryland require employers to provide paid sick leave?
Yes. Under the Maryland Healthy Working Families Act (MHWFA), employers with 15 or more employees must provide paid sick and safe leave, while smaller employers must provide unpaid leave. Employees earn 1 hour of leave for every 30 hours worked, up to 40 hours per year, which can be used for illness, family care, or issues related to domestic violence.
Are Maryland employers required to provide paid vacation or PTO?
No, Maryland law does not require employers to offer paid vacation or paid time off (PTO). However, if an employer provides vacation benefits, it becomes a contractual obligation, and they must follow their written policy regarding accrual, usage, and payout at separation.
What family and medical leave rights do Maryland employees have?
Employees in Maryland are covered by both the federal Family and Medical Leave Act (FMLA) and the Maryland Time to Care Act (TCA).
The FMLA provides up to 12 weeks of unpaid, job protected leave for eligible employees.
The Maryland Time to Care Act, which will take effect in 2026, establishes a Paid Family and Medical Leave (PFML) program that provides partial wage replacement for up to 12 weeks for qualifying family and medical events.
Does Maryland offer paid family leave?
Yes, but the Maryland Paid Family and Medical Leave Program will begin benefits in 2026. Once active, it will allow employees to take paid leave for childbirth, adoption, serious health conditions, or caring for a family member.
Are employees entitled to time off for jury duty in Maryland?
Yes. Employers must allow employees to take time off for jury duty. While they are not required to pay for this time, employees cannot be terminated, penalized, or threatened for fulfilling their civic duty.
Does Maryland require bereavement leave?
No, Maryland law does not require employers to provide bereavement leave. However, many employers offer paid or unpaid leave for employees to attend funerals or grieve the loss of a loved one as part of their internal policy.
Are employees entitled to time off for voting in Maryland?
Yes. Employees who do not have two consecutive non working hours while polls are open are entitled to up to two hours of paid leave to vote. Employers may require proof of voting after the election.
Are meal or rest breaks required by Maryland law?
Yes. Under the Maryland Healthy Retail Employee Act, retail employees working 6 consecutive hours or more must receive a 15 minute break, and those working 8 consecutive hours must receive a 30 minute break. Many employers extend similar break policies to all employees.
What are the official state holidays in Maryland?
Maryland observes both state and federal holidays, including:
New Year’s Day
Martin Luther King Jr. Day
Presidents’ Day
Maryland Day (March 25) (observed by state offices)
Good Friday (state holiday)
Memorial Day
Juneteenth National Independence Day
Independence Day
Labor Day
Columbus Day / Indigenous Peoples’ Day
Veterans Day
Thanksgiving Day
Christmas Day
How can the Day Off app help Maryland employers manage leave and holidays?
The Day Off app helps Maryland employers stay compliant with state and federal leave laws by automating PTO tracking, leave approvals, and reporting. It supports Maryland’s paid sick leave requirements, integrates with Slack and Google Calendar, and simplifies managing holidays and employee absences.