New Maryland Family and Medical Leave Law Begins

New Maryland family and medical leave law begins with payroll contributions starting in 2027

Maryland employers and employees are preparing for one of the most significant changes to our state’s employment landscape in recent years: the Family and Medical Leave Insurance (FAMLI) program.

The FAMLI program was established under Maryland’s Time to Care Act, and is administered by the Maryland Department of Labor. Beginning January 1, 2028, eligible employees will generally be able to receive up to 12 weeks of paid leave per year, with benefits of up to $1,000 per week under the current program structure. The program is designed to provide workers with income while they take time away from work for qualifying family or medical circumstances.

FAMLI will provide eligible Maryland employees with paid, job-protected leave for qualifying family and medical reasons. This program is intended to help Maryland workers take necessary leave without having to choose between caring for themselves or a family member and receiving income.

Unlike the federal Family and Medical Leave Act (FMLA), which generally provides eligible employees with unpaid job-protected leave, FAMLI provides a partial wage replacement during qualifying leave. Although employees will not begin receiving FAMLI benefits until January 1, 2028, Maryland employers already have important responsibilities. Employer registration is underway, payroll contributions begin January 1, 2027, and employers will need to prepare their payroll, leave, employee-notice, and human-resources systems well before benefits become available.

Maryland employers with at least one employee working in Maryland must register with the FAMLI program – and there are no exceptions to the registration requirement based solely on the employer having only one employee. Maryland’s FAMLI program is broader than many small-business owners may realize.

 FAMLI eligibility is based in part on the amount of time an employee has worked in Maryland.

Under the current program, an employee generally becomes eligible after working at least 680 hours in a position localized in Maryland during the four calendar quarters reported before the employee files a claim or begins leave, whichever is earlier.  This is important because eligibility is not simply determined by whether someone has worked for an employer for a particular number of months. FAMLI generally provides up to 12 weeks of paid leave per year, subject to the statutory eligibility and benefit rules. The current maximum benefit is $1,000 per week.

 It is important to understand the differences between FAMLI and the federal Family and Medical Leave Act (FMLA) – FMLA generally provides eligible employees with unpaid, job-protected leave for certain family and medical reasons – while FAMLI, by contrast, provides a paid benefit.  The two programs can apply to the same absence.  When an employee’s leave qualifies under both FMLA and FAMLI, the leave generally runs concurrently, meaning that an employee ordinarily does not receive an entirely separate 12 weeks of FMLA leave plus another 12 weeks of FAMLI leave for the same qualifying event.  There can be circumstances in which FAMLI will apply, but FMLA will not apply.