New Implementation Dates for Maryland’s FAMLI Program
The Maryland General Assembly has officially passed legislation to delay the implementation of the state’s Paid Family and Medical Leave Insurance (FAMLI) program. The Governor is expected to sign the bill in the coming weeks.
Updated implementation timeline:
Payroll deductions will begin January 1, 2027
Benefits will become available by January 3, 2028
Maryland’s Paid Family and Medical Leave Insurance (FAMLI) program, established under the Time to Care Act, is a statewide initiative designed to provide paid leave benefits to employees. Here's a detailed breakdown of the program:
1. Eligibility:
Employees who work at least 680 hours in the previous 12 months are eligible.
Leave can be used for:
Caring for a new child (birth, adoption, or foster care)
Caring for a family member with a serious health condition
Addressing the employee’s own serious health condition
Handling a qualifying exigency related to a family member’s military duty
Caring for a service member with a serious health condition
2. Benefits:
Employees may receive up to 12 weeks of paid leave in a year
Benefits replace a portion of wages during the leave period
3. Funding and Contributions:
Contributions begin January 1, 2027
Employers and employees will contribute to a state-administered fund
Employers with 15+ employees will contribute 0.90% of covered wages, with up to half shareable with employees
Employers with fewer than 15 employees will contribute 0.45%, which may be fully deducted from employee wages
4. Benefits Distribution:
Employees will begin receiving benefits starting January 3, 2028
5. Compliance:
Employers may opt into the state plan or establish a private equivalent plan that meets state requirements
Important Notes for Businesses
Employers must notify employees about their rights and applicable contribution rates under the program
Payroll systems should be updated ahead of the January 2027 deduction start date
MD Labor will be updating proposed regulations and sharing changes through official channels
This program is designed to enhance employee well-being and provide financial support during significant life events, aligning Maryland with other states that offer similar family and medical leave benefits.