Workforce

Md. tries to ease burden of sick leave

A bill expected to be signed into state law would provide small employers with a tax credit to eligible employees.

Maryland’s legislature pushed through a bill on Monday to ease the burden of mandatory sick leave on restaurants and other small employers.

The measure provides companies with 14 or fewer employees a tax credit per eligible staff member of up to $500. To be eligible, the employee must be paid at least $30,000 a year and be eligible for certain benefits, including paid time off for an illness.

The credits are capped at $5 million per year, meaning late applicants may be denied the break.

Under a law enacted earlier this year, enterprises with fewer than 15 employees are required to pay up to five days of unpaid leave. Larger companies have to provide at least five paid days.

Gov. Larry Hogan had vetoed the measure, but the Maryland General Assembly overrode the veto.

Hogan favors the tax break passed on Monday as a way of offsetting the impact on small businesses. If he signs the measure, as expected, the concession will go into effect in July.

The tax credit’s passage comes as a number of jurisdictions throughout the country are looking to adopt or expand paid leave for employees who get sick. Some observers contend the pressure on lawmakers has intensified because the flu sidelined so many people this winter.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Leadership

Meet the restaurant fixer who now owns Etta

Tech entrepreneur Johann Moonesinghe suddenly finds himself leading a growing group of restaurants. His secret? He doesn't expect to make a profit.

Financing

Looking for the next Chipotle? These 3 chains are already there

The Bottom Line: Wingstop, Raising Cane’s and Jersey Mike’s have broken free from the pack of well-established growth chains. Here’s why this trio stands out.

Financing

For Starbucks, 2 years of change hasn't yielded promised results

The Bottom Line: The coffee shop giant’s sales struggles worsened earlier this year, despite a flurry of efforts to improve operations and employee satisfaction.

Trending

More from our partners