Maryland just hit the brakes (again!) on the rollout of its long-anticipated Paid Family and Medical Leave Insurance ("FAMLI") program, which gives Maryland employers additional time to prepare for the new paid leave requirements. On May 6, 2025, Governor Wes Moore signed House Bill 102 ("HB 102") into law, officially postponing the implementation of FAMLI by 18 months. FAMLI, established under Maryland's 2022 Time to Care Act, is a state-administered insurance program that will provide eligible employees with paid family and medical leave benefits (up to 12 weeks of leave) funded through joint employer and employee payroll contributions.
Updated FAMLI Implementation Timeline
- January 1, 2027 – Payroll deductions for the FAMLI program begin.
- April 2027 – The first employer remittances to the state FAMLI fund are due. The exact due date will be set by the Maryland Department of Labor closer to the program's implementation.
- January 3, 2028 – Employees will be able to start claiming FAMLI benefits.
Additionally, HB 102 directs the Maryland Secretary of Labor to issue regulations by July 1, 2028, establishing an optional FAMLI enrollment program for self-employed individuals who wish to participate in the FAMLI program.
This postponement provides Maryland employers with much-needed breathing room and additional time to plan. Maryland employers should use the extra time to review their internal leave policies and any collective bargaining agreements to ensure they will comply with FAMLI's requirements once implemented. Employers can also budget and prepare for the upcoming payroll contributions (which will be split between employers and employees) so they are ready when deductions begin in 2027.
As an alternative to the state-run FAMLI program, employers also have the option to implement an approved Equivalent Private Insurance Plan ("EPIP") that meets or exceeds the benefits provided under FAMLI, allowing them to opt out of the state fund. The Mayland Department of Labor has also created a webpage for important notices and updates concerning FAMLI, which can be found here.
Next Steps – We're Here to Help!
With the FAMLI timeline extended, Maryland employers have a window to get ahead of compliance. Now is the time to assess and update leave policies for compliance with the FAMLI program, evaluate any private leave plans for equivalency and compliance under FAMLI, and coordinate with payroll providers to ensure a smooth implementation of FAMLI contributions.
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