Author: Rob Garagiola

• Have you decided how to be taxed?
• Have you prepared an initial organizing resolution?
• Have you prepared an operating agreement?
• Are you doing business in other states?

The Maryland General Assembly has passed legislation that will establish a new family and medical leave insurance program that will be applicable to businesses with 15 or more employees. While the bill is still awaiting final enactment, it is nearly certain that it will become law and take effect on June 1, 2022.

Under the program, both employers and employees would have to contribute to a new fund that would establish a state family and medical leave insurance program. The new program will likely get underway after the Maryland Department of Labor promulgates regulations, which are anticipated in June 2023.

As this is going to eventually affect most Maryland businesses, it will be important to have an employment law attorney to ensure proper compliance. Compass Law can help you navigate this new family and medical leave insurance program as well as other laws affecting businesses.

As of today, February 7, 2022 1548 bills have been introduced in the Maryland General Assembly and 325 have been introduced before the Delaware Legislature this session.

In Maryland, House Bill 8 would establish a family and medical leave insurance program, which would impose additional taxes on employers – up to $536/employee – to fund the employee leave. There are also bills to modify Maryland’s wage and hour law requirements and that would change the law affecting limited liability companies – or LLCs.

In Delaware, SB 1, Healthy Delaware Families Act is the bill that I think should be highlighted. This legislation would require employers with 25 employees or more to provide up to 12 weeks of paid family and medical leave to their employees. This bill has momentum and was highlighted by the Governor in his recent State of the State address.

Now it’s more important than ever to engage a firm that can represent your interests before the legislative branches in Maryland or Delaware. Changes are coming that could affect your business.

Much like getting an annual physical to ensure good health, it is critically important to do an annual check-up for your business. Whether a single-member LLC that merely owns real estate or a professional business, there are a few things that should be done each year to reduce liability, protect one’s personal assets, and to ensure the good health of your business. Have you held your annual meeting? Do you have an operating agreement – even if a single-member LLC? Has it been updated for changes in case law or statute to protect your personal assets and that of the business? As 2021 begins to wind down, now is the time to make sure your business is in good health.