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Following repeated delays, the Maryland Family and Medical Leave Insurance (FAMLI) program, established by the Time to Care Act, will go into effect starting January 1, 2027. FAMLI applies to any employer with at least one employee performing services in Maryland, regardless of where the employer is headquartered. This new statewide paid leave benefit program will affect every employer in the state.
While mandatory contributions for both employees and employers don't kick in until 2027, and benefits commence on a date set by the Secretary, no later than January 3, 2028, there are steps employers should be taking now to prepare.
FAMLI Overview
FAMLI is a state-run paid family and medical leave insurance program that provides up to 12 weeks of paid leave to eligible employees for qualifying reasons, including: the birth, adoption, or foster placement of a child; caring for a family member with a serious health condition; the employee's own serious health condition; caring for a next of kin service member’s serious health condition; or to assist with a qualifying exigency due to a next of kin family member's military deployment.
However, there are circumstances in which an employee can receive more than 12 weeks of paid leave under the program. Under FAMLI, an employee can receive an additional 12 weeks of paid leave in the same application year if the employee qualifies for both bonding leave and their own serious health condition leave.
Benefits are structured similarly to unemployment insurance; employees receive a portion of their average weekly wage, up to a maximum of $1,000 per week, through 2028. The $1,000 cap applies from the beginning of the program through December 31, 2028, and then is CPI-indexed annually beginning on January 1, 2029. The minimum an employee can receive under the program is $50 per week.
Who is Covered?
Any employee who has worked at least 680 hours in Maryland over the prior four quarters is eligible, regardless of whether they are a full-time, part-time, seasonal, or temporary employee. Remote employees working entirely outside of Maryland are not covered under the program.
Employer Requirements
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Contributions: Beginning January 1, 2027, employers with 15 or more employees must contribute to the FAMLI fund. In April 2026, the Maryland Department of Labor reaffirmed the current total contribution rate is 0.9%, split equally between the employer and employee. On November 1 each year, the Secretary of the Department of Labor will set the contribution rate for the next year.
Note: Employers with fewer than 15 employees are still required to participate in the FAMLI program and provide employees with FAMLI leave, however employers with less than 15 employees do not owe the employer's share of contributions. All employers required to contribute to the FAMLI fund may alternatively opt into an approved private insurance plan in lieu of the state fund.
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Notices: Employers must notify employees of their FAMLI rights at hire, annually, and whenever leave is requested. Written notice of any contribution change is also required at least one pay period in advance.
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Quarterly Reporting: Starting April 2027, employers must submit quarterly wage and hour reports for all employees performing qualifying work in Maryland.
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