There’s been a lot of buzz about when benefits and contributions must begin ever since Maryland’s paid Family and Medical Leave Insurance (FAMLI) passed during Maryland’s 2023 legislative session. But FAMLI is still up in the air, with more delays expected according to current legislation before the Maryland General Assembly proposing to push benefits out to July 2026, with contributions beginning in July 2025. If the bill doesn’t pass, then the Maryland Department of Labor needs to jump on drafting regulations so employers know what to do about contributions starting in October 2024.
So What is FAMLI anyway?
FAMLI allows eligible Maryland workers to take up to 12 weeks away from work to care for themselves or a family member and still receive income of up to $1000 a week. Two groups of workers will be able to receive FAMLI benefits: employees based in Maryland and self-employed Maryland residents who opt into the program.
Any employee with a “qualifying event” who works at least 680 hours in a position based in Maryland in the 12 months before they need to take leave will be eligible for benefits. Qualifying events are:
- Welcoming a child into their home, including through adoption and foster care
- 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
All employers will be required to provide paid family and medical leave insurance, through either a state insurance plan, a commercial plan, or a self-insured option. Employers will be automatically enrolled into the state plan administered by the Maryland Department of Labor.
FAMLI will be funded through contributions that employers remit to the State on a quarterly basis. The exact contribution amount is based on payroll. Employers are permitted to withhold up to 50% of the total contribution rate from employees’ paychecks. These employer remittances are intended to create a trust fund so that payments are appropriately funded starting in 2026. Quarterly wage and hour reports must also be submitted, even if employers are participating in a private plan.
The Maryland DOL is in the process of developing an online portal that workers, employers, and the FAMLI Division can access in the future.
We’ll keep you apprised of developments as they emerge. For questions about this new law, reach out to an RKW employment lawyer.
