New Maryland Legislation Caps Estate Tax Exemption at $5 Million Beginning January 1, 2019


A new law changes both the exemption allowed and rules permitting use of estate tax exemptions in the state of Maryland. For individuals dying in 2018, the Maryland estate tax exemption is $4 million - a $1 million increase from the 2017 Maryland estate tax exemption. This change was part of a 2014 law that incrementally increased the Maryland estate tax exemption each year until 2019, when the exemption was scheduled to match the federal applicable exclusion amount.

Federal Estate Tax Exclusion for 2019
As a result of the recently-enacted, sweeping federal tax reform known as the Tax Cuts and Jobs Act of 2017 (TCJA), the federal applicable estate tax exclusion amount is approximately $11.2 million for decedents dying in 2018. Under the federal law, the exclusion amount will adjust annually for inflation. It is estimated that the federal applicable estate tax exclusion amount will be approximately $11.4 million for decedents dying in 2019. Accordingly, under prior Maryland law, the Maryland estate tax exemption was scheduled to automatically jump from $4 million in 2018 to approximately $11.4 million starting January 1, 2019.

Maryland Estate Tax Exclusion for 2019
However, in early April 2018, new legislation was enacted in Maryland that will cap the amount exempt from Maryland estate tax at $5 million for people who die on or after January 1, 2019. This new law replaces the prior 2014 Maryland law that was scheduled to bring the Maryland estate tax exemption in line with the federal applicable exclusion amount in 2019. In addition, the new Maryland exemption amount will not adjust for inflation each year. So, the amount that a Maryland resident can transfer estate-tax free at death will remain frozen at $5 million until new legislation is passed in the future.

Portability Allowed in New Maryland Law
The new Maryland law also provides for “portability,” a rule permitting a surviving spouse to use, under certain circumstances, the portion of his or her deceased spouse’s unused Maryland estate tax exemption. While portability has been a permanent feature of the federal estate tax scheme for several years, this marks the first time that portability will be available in Maryland, making Maryland one of the few states that provide this relief to its citizens.

How the New Law Effects Estate Planning
Keep in mind that estate tax planning is only one aspect of a comprehensive estate plan. If your estate is not likely to be subject to federal estate tax or even Maryland estate tax under the new law, you should likely focus more on incapacity planning, asset and nursing home protection, guardianship of minor children, blended family issues, special needs children planning, business succession planning, and minimizing income taxes. Current estate plans may not have the intended consequences under the new rules, and no one should wait for a death to find out if they have a good estate plan.

David A. Lucas
is an Attorney in Miller, Miller & Canby’s Estates & Trusts and Business and Tax Practice Groups. David is committed to providing his clients with a well-crafted estate plan so they may avoid probate, protect their assets and legacies, and provide for the security of their loved ones. He takes a special interest in ensuring that the dreams parents have for their children and grandchildren are not lost to taxes, poor planning, or procrastination. He speaks frequently on a variety of estate planning topics to both the general public and private groups.

David has focused his practice on helping families preserve their financial wealth and legacies for future generations through the use of Trusts, Wills, Powers of Attorney, Advance Medical Directives, Living Wills, and other estate planning strategies.

Contact David
to discuss your estate plan to take advantage of the laws available today and ensure flexibility for future changes. For more information on Miller, Miller & Canby’s Estates & Trusts Practice, click here.





Maryland Property Tax News: Tax Court Determines Value of Casino Land in Case of First Impression


In a case of first impression, the Maryland Tax Court recently considered how to value property subject to a 99-year ground lease with a percentage rent arrangement.   The unusual property tax case involved a lease that was entered into by a casino operator and shopping mall owner, in which the casino was responsible for the property taxes.  Casinos are highly regulated entities in Maryland, with operators required to obtain approval from the Maryland Lottery and Gaming Control Commission and pay a large licensing fee.

 Under the ground lease, the casino was required to pay fixed minimum annual rent plus a variable 1% of annual  gross revenues (known as “percentage rent”) generated from gaming and retail sales.  The issue before the court was whether the ground lease should be used as the measure to assess fair market value of the land for ad valorem tax purposes.  The State argued that the lease must be relied upon under an income approach to value.  The casino argued that the ground lease could not be relied upon at all due to its connection to casino revenues.  Instead, the casino urged the court to utilize the sales comparable approach as the only reliable measure of land value.

In analyzing the issue, the Tax Court reviewed Maryland and Federal law related to valuing property subject to leases.  The general rule is that an assessor must consider the effect of a lease on valuation, but it should not be the controlling document in assessing value.  In this case, it was especially true because the ground lease was not a good indicator of property value for these reasons:

  1. The percentage rent provision in the ground lease was speculative and the revenue unknown at the time of execution; and

  2. Including percentage rent in an income approach risks valuing property based on business value instead of property value. Here, approximately two-thirds of the ground rent was derived from the casino business as percentage rent. 

The Maryland Tax Court held that such business income was not indicative of property value, particularly since the property cannot be freely sold in its current use due to the special licensing arrangement with the State.   

In rejecting the States reliance on an income approach using the ground lease, the Tax Court turned to the casino’s appraisal using a sales comparison approach.  The appraisal report listed sales of other properties on which casinos were ultimately constructed – Horseshoe Casino in Baltimore City and the MGM National Harbor Casino on Prince George’s County.   The court deemed that sales are the best indicator of land value for the subject property and reduced the land assessment by a whopping $71M for the 2011 tax cycle and $70M for the 2013 tax cycle, which resulted in a massive tax savings for the casino.  The case is PPE Casino Resorts Maryland LLC vs. Supervisor of Assessments of Anne Arundel County, Case Nos. 14-RP-AA-0503 (1-2) and 14-RP-AA-1276.

Miller, Miller & Canby has been handling assessment appeals of various types of commercial properties in Maryland for more than 30 years.  In 2016, we obtained over $20,000,000 in property assessment reductions for our clients.  Our litigation attorneys regularly represent clients at the assessor level, before the Property Tax Assessment Appeals Board (PTAAB) and in the Maryland Tax Court.  We have successfully appealed the assessments on office buildings, hotels, casinos, retail stores, industrial sites, warehouses, apartment buildings and land at various stages of development.  

Michael Campbell is a partner in the litigation group at Miller, Miller & Canby. In addition to trial and appellate advocacy, his practice focuses on real estate litigation and property tax assessment appeals.  Please feel free to contact Mr. Campbell at 301.762.5212 or send him an email for property tax guidance.  For more information about the firm’s Maryland property tax appeals practice and representative cases, click here.





How Does Tax Reform Affect Your Estate Plan?


In December 2017, a sweeping tax reform bill, commonly known as the Tax Cuts and Jobs Act of 2017 (TCJA), was passed by Congress and signed into law by the President. The TCJA reduces individual and corporate tax rates, eliminates a host of deductions, enhances other breaks, and makes numerous other changes. But how does the TCJA affect your estate plan?  

One thing the TCJA did not do is repeal the federal gift and estate tax, as initially planned by the House of Representative’s version of the bill. Instead, the TCJA temporarily doubles the combined gift and estate tax exemption and the generation-skipping transfer (GST) tax exemption from $5 million to $10 million (adjusted for inflation after 2011). For 2018, the exemption is now $11.2 million per person ($22.4 million for a married couple). This doubled exemption will adjust for inflation each year and will remain in effect until December 31, 2025. If Congress doesn’t act before 2026, the law will sunset and the exemptions will revert to the $5 million level (indexed for inflation).


New Estate Planning Opportunities

These changes open considerable opportunities for people to remove assets from their taxable estates and permanently exempt future appreciation of those assets from estate, gift, and GST tax. For example, by using the increased exemption amount to make tax-free lifetime gifts, you can protect that wealth (and any future appreciation in value) from taxation in your estate, even if smaller exemptions are reinstated before death. Be aware though, that unlike assets transferred at death, lifetime gifts will not receive a stepped-up tax basis. This could cause an increase in income taxes on any gain realized by the recipient when they sell the gifted asset. It is therefore critical to weigh the potential estate tax savings against the potential income tax costs when considering this strategy.


Lifetime Gifting Strategy with 529 College Savings Plan

If you can benefit from a lifetime gifting strategy, then you may want to consider combining that strategy with a 529 college savings plan. The TCJA permanently expands the benefits of these plans, which now permit tax-free withdrawals for qualified elementary and secondary school expenses and not just higher-education expenses. Contributions to 529 plans are removed from your taxable estate even though you can change the beneficiaries at any time and even get your money back (Note: a penalty will be assessed for any non-qualified distributions).  And, you can combine 5 years’ worth of annual gift tax exclusions (currently $15,000 per year) into one year, so an individual could gift $75,000 to a 529 plan this year (or $150,000 for married couples) without triggering gift or GST tax or using any of your exemptions.


Dynasty Trust

It may also be an ideal time to establish a “Dynasty trust.” Significant amounts of wealth can grow and compound free of federal estate, gift, and GST tax with this type of irrevocable trust, providing tax-free benefits for your grandchildren and future generations. In Maryland and a few other states, a dynasty trust can last forever, but some states restrict the length of time these trusts can exist. Avoiding the GST tax is imperative as it imposes an additional 40% tax on transfers to grandchildren and others that skip a generation. Clearly, this tax will quickly erode large amounts of wealth. The key to avoiding the GST tax is to leverage your new, doubled GST tax exemption.

For example, let’s assume that you have not yet used any of your estate and gift tax exemptions and you transfer $10 million to a properly-crafted dynasty trust. There would be no gift tax because you are within your exemption amount. Now, the funds in the dynasty trust, and all future appreciation of those funds, are out of your taxable estate. Then, by allocating your GST tax exemption to your $10 million trust contribution, you can ensure that any distributions from the dynasty trust to your grandchildren (or subsequent generations) avoid GST tax. This is true even if the trust’s funds grow well beyond the exemption amount and even if the exemption amount is reduced in the future.


Other Estate Planning Considerations

Keep this in mind though: estate, gift, and GST tax planning is only one aspect of estate planning. Given that some pundits are predicting that the TCJA has reduced the number of U.S. estates subject to estate tax from approximately 5,000 to 2,000, most families should likely focus more on non-estate tax issues, like incapacity planning, asset and nursing home protection, guardianship of minor children, blended family issues, special needs children planning, business succession planning, and minimizing income taxes.

In fact, it may be preferable to engage in strategies to reduce income tax now and then transfer those savings to your beneficiaries at death with as little transfer tax as possible. This can be done in a variety of ways, including, but not limited to:

  •  Shifting income to someone else: make a lifetime gift of an asset that produces a lot of income to a trust that distributes the taxable income to a beneficiary that is in a lower tax bracket;

  • Charitable giving: contribute more to charity. The TCJA increases the adjusted gross income limitation for deductions of cash donations to public charities from 50% to 60%; and

  • Delaying capital gains taxation: make a gift of an asset that has already appreciated and that you want to sell to a charitable remainder trust (CRT). A sale by the CRT avoids immediate capital gains taxation. 100% of the proceeds of the sale are then reinvested. Distributions from the CRT each year will be taxed to the beneficiary, but may avoid income taxation at top rates.

The TCJA is perhaps the most significant tax legislation in over 30 years. Continued review and experience with the Act will unquestionably reveal numerous new planning opportunities in the coming months and years. Don’t fall into the trap that you don’t need a well-crafted estate plan because of the increased federal estate, gift, and GST tax exemption. Current estate plans may not have the intended consequences under the new rules, and no one should wait for a death to find out if they have a good estate plan.

David A. Lucas is an Attorney in Miller, Miller & Canby’s Estates & Trusts and Business and Tax Practice Groups. David is committed to providing his clients with a well-crafted estate plan so they may avoid probate, protect their assets and legacies, and provide for the security of their loved ones. He takes a special interest in ensuring that the dreams parents have for their children and grandchildren are not lost to taxes, poor planning, or procrastination. He speaks frequently on a variety of estate planning topics to both the general public and private groups.

David has focused his practice on helping families preserve their financial wealth and legacies for future generations through the use of Trusts, Wills, Powers of Attorney, Advance Medical Directives, Living Wills, and other estate planning strategies.

Contact David
to discuss your estate plan to take advantage of the laws available today and ensure flexibility for future changes. For more information on Miller, Miller & Canby’s Estates & Trusts Practice, click here.





MM&C Welcomes New Estate Planning Attorney David Lucas


Miller, Miller & Canby is pleased to welcome David A. Lucas to the Estates & Trusts and Business & Tax Practices, where he will focus his practice on Estate Planning, Trust and Administration, Elder Law and Business Law.

“Miller, Miller & Canby’s Estates & Trusts and Business & Tax, Elder Law and Business Law practices have served families and businesses throughout Maryland and Washington, DC for decades,” said Robert E. Gough, Managing Shareholder for the firm. “We are very pleased to welcome David. His extensive private practice experience in estate and legacy planning, asset protection planning, retirement and business planning services will strengthen and expand our capabilities in these important disciplines.”

Mr. Lucas
is committed to providing his clients with a well-crafted estate plan so they may avoid probate, protect their assets and legacies, and provide for the security of their loved ones. He takes a special interest in ensuring that the dreams parents have for their children and grandchildren are not lost to taxes, poor planning, or procrastination. He speaks frequently on a variety of estate planning topics to both the general public and private groups.

Prior to joining Miller, Miller & Canby, Mr. Lucas was in private practice for 14 years. He began his legal career by serving as a Law Clerk to The Honorable Dennis M. McHugh of the Montgomery County Circuit Court in Rockville, Maryland. After his clerkship, he worked for a general practice firm, where he gained practical experience in a variety of disciplines, including civil litigation, employment law, workers’ compensation, administrative law, family law, estate planning, and business formation. Since 2006, Mr. Lucas has focused his practice on helping families preserve their financial wealth and legacies for future generations through the use of Trusts, Wills, Powers of Attorney, Advance Medical Directives, Living Wills, and other estate planning strategies.

Mr. Lucas is licensed to practice law in Maryland and the District of Columbia and is admitted to practice before the respective local and federal courts. He is a member of the Maryland State Bar Association, the District of Columbia Bar Association, and the Montgomery County Bar Association. He earned a B.A. in Sociology from The Catholic University of America in Washington, D.C. and earned his Juris Doctorate, cum laude, from The Catholic University of America’s Columbus School of Law.

Click the download button below to view the firm's formal press release. For more information about Miller, Miller & Canby’s Estates & Trusts and Business & Tax Practices, click here or contact David at 301-762-5212.
 





Property Owners Have 45 Days to Appeal New Maryland Property Tax Assessments


Last week, the Maryland Department of Assessments and Taxation (SDAT) issued new Assessment Notices to owners of one-third of all commercial and residential properties in Maryland.  For instance, in Montgomery County, commercial properties in Rockville and Gaithersburg were reassessed.  In Frederick County, commercial properties in Ijamsville, Emmitsburg, Thurmont and portions of Frederick were reassessed.  In Prince George’s County, commercial properties in Bladensburg, District Heights, Landover, Lanham and Suitland were reassessed.

Property owners have 45 days from the date of the Assessment Notice to challenge these new assessments.  The “first-level” appeal takes place at the local Assessment Office.  If the assessor refuses to reduce the assessment, the owner may file a further appeal to the county Property Tax Assessment Appeals Board (PTAAB).   This Board will consider the evidence and issue a written decision, usually within two weeks.  If the property owner is still dissatisfied, another appeal may be filed to the Maryland Tax Court.

Miller, Miller & Canby has been challenging the assessments of various types of properties in Maryland for more than 30 years and has obtained substantial reductions in real property assessments for our clients.  Our litigation attorneys regularly represent clients before the local Assessment Office, PTAAB and the Maryland Tax Court.  We have successfully appealed the assessments on office buildings, retail stores, senior living centers, warehouses, industrial sites, casinos, apartment buildings and cemeteries.  Let us help you reduce your Maryland property assessments in 2017.  

Michael Campbell
is a partner in the litigation group at Miller, Miller & Canby.  In addition to trial and appellate advocacy, his practice focuses on real estate litigation and property tax assessment appeals.  Please feel free to contact Mr. Campbell at 301.762.5212 or send him an email for property tax guidance or to help reduce your commercial Maryland property tax assessment.  For more information about the firm’s Maryland property tax appeals practice and representative cases, click here.
 





Starting a New Business? Having a Trusted Team of Legal and Financial Advisors is a Key to Success


Starting a new business is a very exciting time for entrepreneurs with future success in mind. Having a start-up team of trusted financial and legal advisers that includes bankers, lawyers and accountants who listen to your goals and provide cohesive advice is one of the key ingredients to future business success.

Why Hire A Business Law Attorney?
In today’s high-tech world, there are several online resources available to get your business started that may seem cost effective. Keep in mind the old saying, “You get what you pay for”. There is seldom a one size fits all strategy for structuring a business. The key is to find a business and tax attorney who can discuss the issues that the new business owner should consider, explain options, and map out the best strategy for the business owner based on his or her particular needs. Many may want to choose one form of entity over another because they know someone else who chose that form. However, just because an S Corp was the right entity for your father (as he had taken Social Security at 62 and didn’t want the income from the side business to reduce his Social Security benefits), or a friend of a friend set up a C Corp (to maximize certain retirement plan benefits for his long-term financial plan), or a co-worker who set up an LLC (as one of the owners was not a US Person), that doesn’t mean that is the right choice for you and your new business.

The Small Business Administration has outlined “10 Steps to Start Your Business” on their website. Below is a summary of the 10 point plan from the SBA and the steps where a business lawyer should be engaged.

Step 1: Conduct Market Research
Is there an opportunity to turn your idea into a success? Do your research to find a competitive advantage.

Step 2: Write a Business Plan
A well written business plan is your roadmap to success. A business attorney should be consulted during this step to help write the plan to show investors and key stakeholders that you have addressed all legal aspects to make your business a success.

Step 3: Fund the Business
How much money do you need to start the business? If you don’t have the funds, do you borrow or raise the capital needed? A financial advisor should be involved in this step.

Step 4: Pick a Location
Whether your new business is in a physical location or an online store, there is an effect on taxes, legal requirements and revenue.  You should obtain advice from your attorney and accountant in this step.

Step 5: Choose Your Business Structure
Choice of entity for your business impacts personal liability, taxes and most importantly business registration legal requirements. A business attorney with experience in the location of your business is critical during this stage.

Step 6: Choose a Business Name
Choosing the perfect name that reflects your brand may keep you up at night. A business attorney should be engaged to ensure you have rights to the name you select.

Step 7: Register the Business
A business lawyer is critical in this step to make your business legal and protect your brand. You need an attorney who directs your business registration with federal, state and local governments.

Step 8: Obtain Federal and State Tax IDs
Your Employer Identification Number (EIN) needs to be obtained to start and grow your business. Some states require a state tax ID as well.  A business and tax attorney can help you obtain all ID’s that are legally required for your business.

Step 9: Apply for Licenses and Permits
A business attorney will help you keep your business running smoothly by staying legally compliant. Licenses and permits vary by industry, state, location and other factors. Engaging a knowledgeable business lawyer during this step is important.

Step 10: Open a Business Bank Account
Once you have all the business registrations and paperwork completed, it is time to open a small business checking account.

Miller, Miller & Canby’s business law attorneys have over 70 years of experience assisting small businesses as well as large corporations in all aspects of business law and corporate planning, including choice of entity, entity formation and dissolution of taxable and tax-exempt entities, corporate reorganizations, mergers, acquisitions, and business succession. As both CPAs and practicing attorneys, MM&C attorneys are an incredible resource as legal, tax and financial advisors to our clients.

Please feel free to contact any of the business & tax attorneys at Miller, Miller & Canby at 301-762-5212 with your business start-up or legal needs.  View more information about Miller, Miller & Canby's Business & Tax practice by clicking here.  
 





Maryland Real Property Tax Exemptions


Maryland’s tax laws contain a variety of tax exemptions for different types of real property uses.  It’s important to note that just because a property owner is a church, charity or non-profit organization, such status does not automatically qualify the real estate for a property tax exemption.  Additionally, a tax exemption is not the same as a tax credit, which is available to certain property owners under a different section of the Maryland Code.  

View the article by MM&C Litigation Attorney, Michael Campbell, which discusses some of the more common tax exemptions available and the process for obtaining an exemption by clicking the download attachment link below.

Miller, Miller & Canby has been handling assessment appeals of various types of commercial properties in Maryland for more than 30 years.  In 2016, we obtained over $20,000,000 in property assessment reductions for our clients.  Our litigation attorneys regularly represent clients at the assessor level, before the Property Tax Assessment Appeals Board (PTAAB) and in the Maryland Tax Court.  We have successfully appealed the assessments on office buildings, hotels, casinos, retail stores, industrial sites, warehouses, apartment buildings and land at various stages of development.  

Michael Campbell is a partner in the litigation group at Miller, Miller & Canby. In addition to trial and appellate advocacy, his practice focuses on real estate litigation and property tax assessment appeals.  Please feel free to contact Mr. Campbell at 301.762.5212 or send him an email for property tax guidance.  For more information about the firm’s Maryland property tax appeals practice and representative cases, click here.
 





Business Attorney Glenn Anderson Featured on Executive Leaders Radio Program


Glenn Anderson joined Executive Leaders Radio on January 12 and was interviewed by host Herb Cohen, co-founder of the program.

Executive Leaders Radio conducts interviews of prominent CEOs, CFOs, and organizational leaders,  focusing on factors that contribute to success.

The ten to twenty-five minute on-air interviews are essentially informal conversations, where guests are asked about their background, education, influences, mentors and early career experiences. Guests also talk about their business, what they do and who they serve. Additionally, questions probe “interests outside of work, personal turning points and family sacrifices to capture the unique human aspect behind these prominent leaders."

During his interview Glenn spoke at length about the entrepreneurial drive that he possessed at a young age, and how his father influenced this passion. He also spoke about his education, the leadership roles he has held at Miller, Miller & Canby, which include Chief Financial Shareholder and Managing Shareholder, and his belief in the importance of mentoring.

In addition to launching Executive Leaders Radio, Herb Cohen also co-founded the University of Pennsylvania’s Wharton Entrepreneurial Network, Fairleigh Dickinson Entrepreneurial Center, and the Center for the Advancement of Study of Entrepreneurship at Temple University.

Executive Leaders Radio airs on Federal News Radio (WFED 1500 AM and streams at federalnewsradio.com). The program also airs nationally in major markets.

Glenn Anderson
leads the Business & Tax practice and Estates & Trusts practice at Miller, Miller & Canby.  He can be reached 301-762-5212.





Property Owners Have 45 Days to Appeal New Maryland Property Tax Assessments


Last week, the Maryland Department of Assessments and Taxation (SDAT) issued new Assessment Notices to owners of one-third of all commercial and residential properties in Maryland.  Property owners have 45 days from the date of the Assessment Notice to challenge these new assessments.  The “first-level” appeal allows the owner the opportunity to convince the assessor that the assessment is incorrect.  If the assessor refuses to reduce the assessment, the owner may file a further appeal within 30 days to the county Property Tax Assessment Appeals Board (PTAAB).   The Board will consider the evidence and issue a written decision, usually within two weeks.  If the property owner is still dissatisfied, another appeal may be filed to the Maryland Tax Court.

Miller, Miller & Canby has been protesting the assessments of various types of commercial properties and high-value residential properties in Maryland for more than 30 years and has obtained substantial reductions in real property assessments for our clients.  Our litigation attorneys regularly represent clients before the local Assessment Office, PTAAB and the Maryland Tax Court.  We have successfully appealed the assessments on office buildings, retail stores, senior living centers, warehouses, casinos, apartment buildings, cemeteries and property being developed.  Let us help you reduce your Maryland property assessments in 2017.  

Michael Campbell
is a partner in the litigation group at Miller, Miller & Canby. In addition to trial and appellate advocacy, his practice focuses on real estate litigation and property tax assessment appeals.  Please feel free to contact Mr. Campbell at 301.762.5212 or send him an email for property tax guidance or to help reduce your commercial Maryland property tax assessment.  For more information about the firm’s Maryland property tax appeals practice and representative cases, click here.
 





Have you Updated Your Employee Handbook to Comply with the New Ordinance on Sick and Safe Leave?


A new Montgomery County ordinance took effect on October 1, 2016, which now requires Employers in Montgomery County to provide certain paid sick and safe leave, to expand the permitted uses of this sick and safe leave, and to permit certain carryovers of unused leave into the next year.  Do the provisions of your current employee Handbook comply with these new requirements?  Are your policies consistent with the law?  If not, an experienced business law attorney can assist you in these areas.

A summary of the principal provisions of the new requirements are as follows:

  1. Employers must allow employees who regularly work more than eight (8) hours each week to accrue paid time off in order to provide care for themselves or family members in cases of illness, preventative care, or in response to sexual violence or stalking.
  2. Employers in Montgomery County are required to provide each employee earned sick and safe leave for work performed in the County paid at the same rate and with the same benefits that the employee normally earns.  
  3. An employer with less than 5 employees is only required to provide up to 32 hours of paid sick and safe leave and 24 hours of unpaid sick and safe leave in a calendar year.
  4. An employer with 5 or more employees is required to provide up to 56 hours of paid sick and safe leave in a calendar year.  
  5. An employee can carryover up to 56 hours of unused sick and safe leave into the next calendar year.
  6. The definition of activities qualifying for sick and safe leave has been expanded.
  7. Employers must keep records for at least 3 years of: (i) earned sick and safe leave by each employee and (ii) earned sick and safe leave used by each employee.

The business law attorneys at Miller, Miller, and Canby can assist employers with setting up or updating their employee handbook, so that it complies with the County’s ordinance on sick and safe leave. To learn more about MM&C’s business law practice and to contact one of the firm’s business law attorneys click here.





More Entries