Maryland took a significant step for worker protections when it passed the Healthy Working Families Act (HWFA) in 2018 — one of the first states in the mid-Atlantic region to mandate paid sick leave. The law requires employers with 15 or more employees to provide paid sick and safe leave, while smaller employers must still provide the leave, but unpaid. Together with Maryland's strong Wage Payment and Collection Law, the state gives employees meaningful protections for both sick leave accrual and written PTO commitments.
What makes Maryland distinctive is the "safe leave" component built directly into the law: the same leave bank that covers illness also covers absences related to domestic violence, sexual assault, or stalking. Maryland designed HWFA as a single, unified leave entitlement rather than separate sick leave and safe leave buckets.
⚖️ Maryland Sick Leave Law (HWFA) — At a Glance (2026)
Who HWFA Covers
The Healthy Working Families Act applies to all private employers in Maryland. The 15-employee threshold determines whether the leave is paid or unpaid — not whether the law applies. An employer with 5 employees must still provide leave; it just doesn't have to be paid. An employer with 15 or more employees must provide paid sick and safe leave.
The employee count is based on the average number of employees on payroll during the previous 20 calendar weeks, including part-time employees. Independent contractors do not count toward the threshold. Certain agricultural employers have modified rules under the HWFA.
How Maryland Sick and Safe Leave Accrues
Leave accrues at 1 hour for every 30 hours worked, beginning on the employee's first day of employment. However, employees cannot use the leave until they have been employed for 106 calendar days. After that waiting period ends, the full accrued balance becomes available.
Key accrual mechanics:
- Annual use cap: 40 hours per year — even if more is banked, only 40 can be used in a single year
- Carryover: Unused leave carries over year to year, up to a maximum balance of 64 hours
- Front-loading option: Employers may front-load 40 hours at the start of the year instead of the per-hour accrual method — if they do, carryover of the front-loaded amount is not required
- New employees: Leave begins accruing immediately but is locked until day 107
What Maryland Sick and Safe Leave Covers
HWFA leave can be used for a broader range of situations than traditional sick leave laws. Employees may use it for:
- The employee's own mental or physical illness, injury, or condition — including preventive care
- Care for a family member who is ill, injured, or needs preventive care (family members include children, parents, grandparents, grandchildren, siblings, spouses, and domestic partners)
- Safe leave: Time away related to domestic violence, sexual assault, or stalking experienced by the employee or a family member — including obtaining legal or medical help, relocating, or attending legal proceedings
The "safe leave" integration is meaningful: unlike states that require a separate safe leave policy, Maryland employees draw from one unified leave bank for all qualifying purposes. There's no need to track separate buckets.
Vacation Pay and Termination Payout Under the Maryland WPCL
HWFA sick leave does not need to be paid out at termination. But Maryland's Wage Payment and Collection Law (WPCL) creates a separate and important obligation for vacation and general PTO. Under the WPCL, earned wages must be paid. Maryland courts and the Department of Labor have consistently held that accrued vacation pay is an earned wage if the employer's policy promises it.
| Leave Type | Maryland Termination Payout Rule |
|---|---|
| HWFA sick/safe leave | No payout required at termination |
| Accrued vacation (policy says pay out) | Required — WPCL treats as earned wages |
| Accrued vacation (policy says forfeit) | Forfeiture upheld |
| Combined PTO bank (policy silent) | Gray area — Maryland courts have ruled both ways |
Maryland WPCL Penalties: Triple Damages Are Real
Maryland's Wage Payment and Collection Law has some of the strongest penalties for wage non-payment in the country. If a court finds that an employer withheld wages (including promised vacation pay) not as a result of a bona fide dispute, it can award up to three times the unpaid wages as enhanced damages — in addition to attorney's fees and costs. This "treble damages" provision makes Maryland WPCL claims particularly potent for employees whose employers refuse to honor written PTO payout commitments.
For Maryland Employers: HWFA Compliance Checklist
- ☐ Confirm whether you have 15 or more employees (determines paid vs. unpaid obligation)
- ☐ Update employee handbook with HWFA-compliant leave policy: accrual rate, 106-day waiting period, permitted uses, carryover rules
- ☐ Post the required HWFA notice in the workplace (available from the Maryland Department of Labor)
- ☐ Configure payroll/HR system to track accrual from day one with 106-day lock
- ☐ Decide: per-hour accrual or front-load method?
- ☐ Clarify vacation/PTO termination payout rules in handbook — WPCL triple-damages exposure for ambiguous or broken promises
- ☐ Include safe leave provisions — make clear the leave bank covers domestic violence/safe leave purposes
Plan Your Maryland Leave Year
Maryland gives employees real sick leave rights — and enforces vacation promises with teeth. Keep your PTO tracked all year with our free calculator.
Open the PTO Calculator →Frequently Asked Questions
Does Maryland require paid sick leave?
Yes. Maryland's Healthy Working Families Act requires employers with 15 or more employees to provide paid sick and safe leave. Employees accrue 1 hour per 30 hours worked, up to 40 hours of use per year, with a 106-day waiting period before use. Employers with fewer than 15 employees must provide the same accrual but as unpaid leave.
When can Maryland employees start using sick leave?
Employees begin accruing leave on their first day but cannot use it until they have worked for the employer for 106 calendar days. After that waiting period, the full accrued balance is available. Employers may voluntarily allow use before 106 days if they choose.
Does Maryland require PTO payout at termination?
HWFA sick leave does not need to be paid out at termination. For vacation or general PTO, Maryland's Wage Payment and Collection Law enforces written policy promises as earned wages. If your employer's policy says accrued vacation is paid at termination, WPCL requires it — and bad-faith withholding can trigger triple damages.
What reasons can Maryland employees use sick leave for?
HWFA leave covers the employee's own illness, preventive care, or injury; care for a family member who is ill or needs preventive care; and "safe leave" — absences related to domestic violence, sexual assault, or stalking experienced by the employee or a family member, including obtaining legal help, relocating, or attending legal proceedings.
Does Maryland paid sick leave carry over year to year?
Yes. Unused sick leave carries over from year to year, up to a maximum total balance of 64 hours. Employees may only use up to 40 hours per year regardless of balance. Employers who front-load 40 hours at the start of the year are not required to carry over the front-loaded amount.
Does Baltimore have additional paid leave requirements beyond Maryland state law?
Baltimore City passed its own paid sick leave ordinance in 2014, but Maryland's statewide HWFA largely superseded it following state preemption provisions. For most private employers in Baltimore, Maryland state law governs. Employers operating in Baltimore should confirm whether any remaining Baltimore-specific requirements apply to their situation.