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Maryland Paid Family and Medical Leave (FAMLI): What Employers Need to Know

July 13, 2026

Maryland’s Family and Medical Leave Insurance (FAMLI) program is moving forward, creating a new state-administered paid leave benefit for eligible employees.

Key Dates

  • January 1, 2027: Payroll contributions begin for employers and employees.
  • January 2028: Eligible employees may begin applying for paid leave benefits.

Benefits
Eligible employees may receive:

  • Up to 12 weeks of job-protected paid leave each year.
  • Weekly benefits of up to $1,000, depending on earnings.

Leave may be used for:

  • The employee’s own serious health condition.
  • Caring for a family member with a serious health condition.
  • Bonding with a new child through birth, adoption, foster care, or kinship care.
  • Certain military family caregiving and deployment-related needs.

Employer Responsibilities
Employers with at least one Maryland employee should begin preparing now by:

  • Budgeting for required employer contributions.
  • Planning payroll system changes to accommodate employee withholding beginning in 2027.
  • Evaluating whether to participate in the State Plan or apply for an approved private plan.
  • Reviewing existing leave and disability policies to determine how they will coordinate with FAMLI.
  • Preparing to provide required employee notices and quarterly wage and hour reporting.

Employee Eligibility
Employees generally become eligible after working at least 680 hours in Maryland during the four calendar quarters preceding a leave claim. Coverage is based on where the work is performed—not where the employee lives.

PGCA encourages Maryland employers to begin reviewing their leave policies and payroll systems well in advance of the 2027 implementation date. Additional guidance and employer resources will continue to be released by the Maryland Department of Labor as the program rollout progresses.

We encourage Maryland employers to become familiar with the new law now and watch for future communications from PIMSC with more detailed guidance.

Watch for upcoming articles on topics such as:

  • Employer contribution requirements
  • Employee eligibility rules
  • Payroll withholding procedures
  • State Plan vs. Private Plan
  • Required employer notices
  • Coordination with FMLA and company leave policies

 

 

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