MD Family and Medical Leave Insurance Potential Delay
Maryland’s Paid Family and Medical Leave Insurance (FAMLI) program is facing a potential delay. The Maryland Department of Labor (MD DOL) has proposed extending the implementation timeline, with payroll deductions now proposed to begin January 1, 2027 and benefits becoming available January 1, 2028. This change aims to provide employers and workers more time to adapt.
What needs to happen for this delay to become official?
The MD DOL acknowledges that action from the legislature is required to authorize the delay and states that it is working closely with leadership in the MD General Assembly to extend the implementation dates.
What should employers be doing in the meantime?
Work with payroll providers to ensure that if the payroll deduction delay does not occur that they are prepared to begin deductions July 1, 2025.
Why the delay?
The MD DOL stated, “Changes at the federal level have given rise to a high degree of instability and uncertainty for Maryland employers and workers. Hundreds of thousands of Marylanders are employed in civilian positions with the federal government and are facing threats of severe workforce reductions. Additionally, in 2023, approximately 225,000 jobs in Maryland were directly supported by federal contract dollars. These jobs, and others in the private sector, are also directly impacted by federal actions.”
We’re keeping a close eye on this evolving situation to ensure you’re informed and prepared. We’ll publish the relevant compliance tasks as more information is available. Stay tuned for updates!
