MD SB3

Replaces the fixed $8,500 taxable wage base for employer unemployment insurance contributions with a percentage-based formula tied to the state average annual wage, reaching 16% of the average annual wage by calendar year 2029

Establishes a new weekly benefit amount calculation by dividing the claimant's highest quarter wages by 24, with benefits ranging from at least 15% to a maximum of 40% of the state average weekly wage beginning in calendar year 2027

Requires the Maryland Department of Labor to determine and publish online the state average annual wage by January 31 each year for employer contribution rate purposes, and update the state average weekly wage on July 1 each year for benefit calculations

Increases the earned wages disregard from the current formula to allow claimants to earn up to $50 per week before wages reduce their unemployment benefits

Takes effect July 1, 2026, with the Secretary of Labor required to adopt regulations and set transitional taxable wage base and maximum benefit amounts during the phase-in period