After several delays, Maryland’s paid family and medical leave program, known as Family and Medical Leave Insurance (FAMLI), begins its phased implementation in 2027. Maryland’s FAMLI will provide eligible employees with paid, job-protected leave for certain qualifying family and medical reasons. While benefits under FAMLI are not available until January 3, 2028, employee and employer contributions toward the program begin on January 1, 2027, with employer action required in fall of 2026.
Covered Employers and Employees
All employers with at least one employee in Maryland are covered by FAMLI.
Employees are eligible for leave under FAMLI if they worked at least 680 hours in Maryland in the four calendar quarters prior to applying for benefits or starting leave. Eligible employees may begin applying for benefits on January 3, 2028.
Reasons for Taking Leave and Length of Leave
Employees may take leave under FAMLI:
- To bond with a child after birth or placement for adoption, foster care, or kinship care;
- For the employee’s own serious health condition;
- To care for a family member with a serious health condition;
- To care for a service member with a serious health condition resulting from service in the uniformed services; or
- To attend to a qualifying exigency arising from the deployment of a service member who is a family member.
Employees will generally have a total of 12 weeks of leave available to them in a 12-month period. The 12-month period begins the Sunday before the calendar week an employee starts their leave. However, an employee who takes 12 weeks of leave to bond with a child may take an additional 12 weeks of leave for their own serious health condition in the same 12-month period. The same is true if an employee first takes leave for their serious health condition and then needs leave to bond with a child later in the 12-month period. Any leave taken under FAMLI runs concurrently with federal Family and Medical Leave Act (FMLA) leave if the reason for leave qualifies under both laws.
FAMLI Premiums
FAMLI is funded through payroll deductions of 0.9% of an employee’s wages up to the Social Security contribution limit in 2027. The exact contribution percentage can change annually but is capped at 1.2%. Employers must contribute half of that amount (0.45%) and can deduct the remaining half from an employee’s pay. Employers with 14 or fewer employees overall are not required to make an employer contribution and are only required to deduct the employee portion of the contribution.
These deductions begin January 1, 2027, and will be submitted to the Maryland FAMLI Division on a quarterly basis.
Private Plans and Required Employer Action
Employers can comply with the requirements of FAMLI through an approved private plan that provides equivalent or better benefits than the state-run FAMLI plan. Employers who intend to comply with FAMLI via a private plan must submit a Declaration of Intent between September 1-November 15, 2026, and then apply for a private plan in 2027. More information on private plans is available here. Additionally, employers need to take the following actions:
- Register with the Maryland FAMLI Division
- All employers must register with the Maryland FAMLI Division regardless of whether they plan to participate in the State plan or use a private plan. Information on registration is available here.
- Prepare to withhold contributions and submit quarterly wage and hour reports
- Employers should prepare to withhold and remit FAMLI contributions starting January 1, 2027. Contributions are remitted on a quarterly basis with the first due date being April 30, 2027.
- Employers must also submit quarterly wage and hour reports to the FAMLI Division. The first report is due April 30, 2027.
- Notify employees of upcoming payroll deductions
- Employers must notify employees of upcoming FAMLI payroll deductions at least one pay period prior to the start of deductions. The FAMLI Division intends to create a sample notice for this purpose.
Employers with one or more employees in Maryland should review the requirements of Maryland Family and Medical Leave Insurance and take the necessary action. While payroll deductions do not begin until January 2027, employers wishing to use a private plan must submit their declaration of intent to use a private plan by November 15, 2026.
The information provided is a summary of laws and regulations relating to employee benefit plan compliance. This information should not be construed as legal advice. In all cases, employers should consult with their own legal counsel.
