What’s Going on With Maryland’s Paid Family Leave Insurance (FAMLI) Program?  

Big news from Maryland: The implementation of the state’s Family and Medical Leave Insurance (“FAMLI”) program has just been officially delayed. While we were previously looking at FAMLI payroll deductions kicking off in mid-2025, the new dates give employers a bit more breathing room. Here’s the revised timeline to keep in mind:  

• • Payroll deductions start on January 1, 2027  

• • Leave benefits become available on January 3, 2028  

Why the delay? The Maryland Department of Labor (MDOL) cited “unprecedented uncertainty” caused by recent federal personnel and contract terminations.  

What Does This Mean for Your HR Strategy?  

A delay doesn’t mean you can push this off your to-do list. It just gives you extra time to prepare your organization and ensure compliance. Here’s how you can use this time wisely: 

• • Stay Updated on MDOL Regulations  

The MDOL will revise their proposed regulations soon with new notice dates. Be sure to keep an eye out for any announcements.  

• • Start Planning Payroll Adjustments  

Payroll deductions may not start until 2027 but now is a great time to evaluate your company’s payroll systems. Will your current setup handle these new contributions? If not, this is your chance to explore solutions or work with your payroll provider.  

• • Educate Managers and Employees  

Start laying the groundwork for educating your team. Employees will want to know how these benefits work, and managers will need guidance on how to handle requests for leave once benefits go live.   

MD FAMLI Summary 

The FAMLI program provides benefits to replace a portion of a covered employee’s income and job-protected leave: 

• • To care for a child during the first year after the child’s birth or after the placement of the child through foster care, kinship care, or adoption 

• • To care for themselves if they have a serious health condition 

• • To care for a family member’s serious health condition 

• • To make arrangements for a family member’s military deployment 

Covered Employers 

• • Employers with at least one employee in the state are covered and must provide leave. With limited exceptions, only employers with at least 15 employees must contribute to the program. 

• • The maximum amount of leave a covered individual may take is 12 weeks per year (the year begins the day the employee applies for benefits).  

• • However, a covered individual may receive an additional 12 weeks of leave for their own serious health condition during the same year even if they have used leave to care for a child following the child’s birth or placement. 

• • Employees who take leave are entitled to continued employee health benefits during leave and to reinstatement to an equivalent position, unless (1) the employee is terminated for cause or (2) reinstatement would cause substantial and grievous economic injury to the employer’s operations and certain advance notice is provided. 

What Now?  

You’ve got time before Maryland’s FAMLI program begins. Start preparing now, and you’ll make implementing the program in 2027 a breeze (or as close to a breeze as compliance can get).