Maryland employers should begin preparing for the state’s new Family and Medical Leave Insurance (FAMLI) program, which will provide eligible employees with paid, job-protected leave for certain family and medical reasons.
Under the current implementation schedule, employer and employee contributions will begin in January 2027, while employees will become eligible to receive benefits beginning in January 2028. The program is expected to provide up to 12 weeks of paid leave annually, with weekly benefits of up to $1,000.
FAMLI will cover a range of qualifying circumstances, including an employee’s own serious health condition, caring for a family member with a serious health condition, bonding with a new child, and certain circumstances involving family members in the uniformed services.
Maryland’s definition of a family member is relatively broad and includes children, parents, spouses or domestic partners, siblings, grandparents, grandchildren and certain legal guardians or wards.
What Employers Need to Know
Employers with at least one employee in Maryland will be required to register for FAMLI, with registration expected to open in fall 2026. Employers will generally be enrolled in the State Plan unless they receive approval to use a qualifying private plan. Employers must also designate an authorized officer who will be responsible for certain program-related actions.
Beginning in January 2027, employers may withhold up to one-half of the required contribution from employee paychecks, with the employer responsible for the remainder. Employers will also have employee-notification requirements and will need to begin submitting quarterly wage and hour information starting in April 2027.
Importantly, FAMLI leave will generally be job protected. Employers will be required to maintain an employee’s position while the employee is on qualifying leave and return the employee to the same or an equivalent position upon return.
What Employers Should Be Doing Now
Although benefits are still more than a year away, Maryland is encouraging employers to begin planning now. Employers should consider the financial impact of contributions, review existing PTO, short-term disability and other leave programs, determine whether the State Plan or a private plan is most appropriate, and begin evaluating the payroll and administrative changes that will be necessary.
PGCA will continue to monitor implementation of Maryland FAMLI and will provide members with additional information, compliance guidance and updates as registration, contribution rates, notices and other requirements are finalized.
