Maryland’s paid family and medical leave insurance program is no longer a future plan. It’s moving into active implementation. The Maryland Department of Labor has adopted final administrative rules effective Jan. 1, 2027, and employer registration is already required now for every employer with at least one Maryland employee.
When the program takes effect, the Maryland FAMLI will allow eligible workers to take time away from work to care for themselves or a family member. This program provides employees with wage replacement during this leave, with a maximum of $1,000 a week for 12 weeks. This program is funded by payroll contributions split between employers and employees, with employers able to use the State Plan or apply for an approved private plan.
Update on Implementation Timelines
Since this program’s proposal, Maryland’s program has moved through two major milestones. The General Assembly passed a bill in May 2025 delaying the implementation dates of the FAMLI program. In 2026, the Maryland Department of Labor finalized the administrative rules that govern how the program operates.
With these updates, here’s a quick list of what employers should now expect:
- Employer registration is open and required for every employer with at least one Maryland employee. Registration is completed at paidleave.maryland.gov/register, and only an Authorized Officer (owner, CEO, CFO, COO, president, or secretary) can complete it. Third-party agents can’t register on an employer’s behalf, though they can be granted access afterward via Power of Attorney.
- Employers collecting employee contributions must notify affected employees, one full pay period before withholding begins. Depending on the employer’s payroll schedules, this could be December or sooner. Employers should review any affected employee payroll schedules. The FAMLI Division has noted they will have sample notices available.
- Payroll deductions will begin January 1, 2027, at a total rate of 0.9% of wages. Each November, MD Labor will announce the contribution rate for the coming year. The total rate cannot go over 1.2% of wages up to the Social Security cap. Employers can split the contribution with their employees, less than or equal to 50% of the contribution rate, or the employer can choose to cover the full contribution amount. Employers should notify their employees of contribution rates and the portion the employer is electing to pay.
- Employers with fewer than 15 employees owe only half that rate. Those employers may withhold that amount from employers’ pay.
- The first quarterly wage and hour report and contribution remittance is due April 30, 2027, covering wages paid January 1 through March 31, 2027.
- A general employee notice requirement begins July 2027 (six months before benefits start). Employers must also notify employees about paid family and medical leave at the time of hire, annually, and when an employee requests leave. Sample notices should be made available by the FAMLI Division.
- Benefits will become available January 1, 2028.
You can read more about FAMLI at the Maryland Department of Labor website.
Who Is Eligible for FAMLI?
Any employee performing work in Maryland who has worked 680 hours in the four most recently completed calendar quarters at the time of claim application completion or leave starts. (Employees may have multiple employers, meaning, if they haven’t completed 680 hours with current employment, they may still be eligible.) Self-employed individuals can also elect to participate.
What New Protections Does FAMLI Grant Employees?
FAMLI will provide wage replacement while a worker takes time away from work. The law also provides job protection and prohibits retaliation so workers can have confidence that they will be able to return to their job, or an equivalent position after their leave. Employee’s benefits must be continued while on leave.
Is FAMLI Paid?
Starting January 1, 2028, the Maryland FAMLI system will ensure that eligible workers can take time away from work to care for themselves or a family member and receive up to $1,000 a week for up to 12 weeks. Some employees may be eligible for additional paid leave under the insurance program’s benefits.
Employers with their own short-term disability programs (STD) should note FAMLI benefits will not be reduced by an employee claiming STD with their employer. Employers should begin reviewing their STD programs to see how best to complement or off-set FAMLI benefit payments.
Employers cannot force an employee to use any accrued paid benefit the employer or the state mandates. However, the employee and employer can agree to use accrued benefits to top-off any FAMLLI benefits received. Agreements should be documented and retained by the employer. If the employee chooses to use state mandated paid sick leave, the employer and employee do not have to agree – the employee can use sick time. Employers may need to review any employer sponsored paid accrual programs and ensure language matches use requirements under the law and create or define any employer/employee agreement documentation needs.
What Are Employers Funding Responsibilities?
All employers with at least one employee in Maryland must participate in the new program. However, only employers with at least 15 employees must also contribute to the fund with the employee, each paying half. Here is the breakdown of employer responsibilities:
- Employers with one or more employees must withhold a payroll tax from employee wages for the program
- Employers with 15 or more employees must contribute toward the fund for each employee
The total contribution rate is 0.9% of wages, up to the Social Security wage cap; employers with fewer than 15 employees owe only half that rate. Employers can also apply for an approved private plan instead of remitting contributions to the state, though they must still file quarterly wage/hour and claims data and retain records for five years. Federal employees working in Maryland are not eligible for FAMLI and do not contribute.
Does FAMLI Interact with FMLA?
If the leave taken under FAMLI also qualifies for leave under FMLA, or any other protected leave, those benefits will run concurrently (at the same time). Employees will recognize the benefit under both laws where applicable.
Does FAMLI Offer Job Protection?
The law provides protection so workers can have confidence that they will be able to return to their job after their leave. Employers are only able to terminate for cause and must continue covering the employee’s insurance benefits during the leave.
What Reasons Can an Employee Take Leave under FAMLI?
Employees may take leave in full day or intermittent increments of no less than four hours (unless the employee’s shift was less than four hours). Employees can take leave to:
- Manage their own serious health condition needs
- Bond with a new child
- Care for a family member with a serious health condition
- Care for a service member
- Attend to a qualifying exigency related to a military deployment
What About Virginia and D.C.? The DMV Region’s Paid Leave Patchwork
Maryland isn’t the only jurisdiction in the DC-Maryland-Virginia (DMV) area building a paid leave program. Virginia enacted its own Paid Family and Medical Leave law in April 2026, with payroll contributions starting April 1, 2028 and benefits available beginning December 1, 2028 — roughly a year behind Maryland’s timeline.
The District of Columbia already has an established Paid Family Leave program of its own. For employers with workers across this region, that means three overlapping yet distinct paid leave programs to track at once. Recent changes reduced entitlements for certain leave reasons; however, the reduction reverses in 2030.
For a closer look at how these laws interact, watch AbsenceSoft’s Live with Legal session featuring Seth Turner and Littler’s Stephanie Mills-Gallan. The webinar will cover how Virginia’s new law intersects with statutes in Maryland and DC.
How Can Your HR Team Ensure It’s Compliant With FAMLI?
When FAMLI takes effect, AbsenceSoft will be updated and ready on day one to track benefits and leave for Maryland-based employees. Your leave team will be able to track and process leave requests for employees, right alongside requests for the FMLA, ADA, PWFA, and company-specific leave policies.
To see AbsenceSoft in action, you can schedule a demo today. To learn more about FAMLI, you can visit the state of Maryland’s official website.