Maryland employers should be aware of a recent legal update that changes the landscape for unpaid parental leave. As of July 1, 2024, new exclusions have been added to the Parental Leave Act (PLA) — a state law that provides eligible employees of smaller employers with unpaid, job-protected leave for the birth, adoption, or foster placement of a child. What Changed? The Maryland General Assembly passed legislation amending the PLA to exclude certain categories of employees from coverage. These exclusions apply regardless of the size of the business, and include: Employees covered under a collective bargaining agreement that provides for parental leave; Employees who primarily perform services outside of Maryland; Certain highly compensated employees, such as executive or managerial personnel (under defined criteria). Why It Matters to Your Business If you’re a Maryland employer with 15 to 49 employees, you’re likely already subject to the Parental Leave Act. These new exclusions narrow the scope of employees entitled to unpaid parental leave under the law. What this means for you: You may no longer be required to provide unpaid leave to employees who fall into one of the new exclusion categories. Your employee handbook or leave policies may need updating to reflect the current law. Misclassifying an employee or failing to recognize the new exclusions could expose your business to legal risk. Key Action Items for Employers Review your leave policies – Ensure they align with the updated law. Audit employee classifications – Especially for out-of-state workers and executive staff. Train HR and managers – Make sure decision-makers understand who is and isn’t covered. Seek legal guidance – When in doubt, consult with counsel to avoid compliance issues. Luchansky Law Can Help Our firm regularly advises Maryland employers on leave laws, compliance obligations, and policy development. If you’re unsure how these new exclusions apply to your workforce, or if you need assistance updating your handbook, we’re here to help. Contact Luchansky Law today to protect your business and ensure compliance. Key Resources Maryland Clarifies Parental Leave Law: FMLA-Covered Employers Now ExemptJackson Lewis overview of Senate Bill 785🔗 https://www.disabilityleavelaw.com/2025/05/articles/uncategorized/maryland-clarifies-parental-leave-law-fmla-covered-employers-now-exempt Maryland Enacts Changes to Parental Leave ActNFP’s breakdown of eligibility and changes effective October 1, 2025🔗 https://www.nfp.com/insights/maryland-enacts-changes-to-parental-leave-act Maryland’s Proposed FAMLI Regulations Are Finally HereLabor & Employment Report blog from Shawe Rosenthal LLP🔗 https://www.laboremploymentreport.com/2024/10/27/marylands-proposed-famli-regulations-are-finally-here-what-do-they-say