Terms
Employer: anyone who pays a salary or wage to at least one person who works in Maryland. Only the federal government is excluded from participating in FAMLI.
Worker: anyone who receives a salary or wage for work done in Maryland. Workers don’t include independent contractors or federal government employees.
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Paid Family and Medical Leave is coming to Maryland
Maryland is preparing to launch a new paid family and medical leave program! Starting July 1, 2026, workers will receive job protection and be able to take time away from work to care for themselves or a family member and still be paid up to $1,000 a week for up to 12 weeks. FAMLI is an insurance program. Employers and workers will make contributions into a fund administered by the State. Alternatively, an employer may apply to use a commercial or self-insured plan. When a worker needs to take leave, either the State or the private plan will pay the worker a portion of their salary.
What qualifying events could a worker use leave for?
- To welcome 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
Important dates
July 1, 2025: Contribution period for the State Plan begins.
This means payroll deductions will begin on July 1, 2025, and employers will remit the first payment to the State in October 2025.
July 1, 2026: Benefits for all workers begin.
The contributions employers remit to the State will create a trust fund. The fund will grow over time and be ready to pay out benefits to Maryland workers starting July 1, 2026.
All employers with at least one worker in Maryland will be required to offer paid family and medical leave insurance
There are no exemptions.
Eligibility for benefits
A worker will be eligible for benefits after working at least 680 hours in positions based in Maryland in the 4 calendar quarters reported before they need to take leave.
The law doesn’t exclude seasonal or part time employees. There are no exemptions.
Eligibility isn’t dependent on living in Maryland. Anyone working in a position located in Maryland will be eligible for benefits.
My company's office is located in Maryland, but some people work from another state. Will out-of-state workers contribute and be eligible for benefits?
No, only Maryland workers will contribute and be eligible for benefits.
My company's office is not located in Maryland, but some people work from Maryland. Will the workers in Maryland contribute and be eligible for benefits?
Any worker localized in Maryland will contribute and be eligible for benefits.
Employer registration and plan selection
Employers will register with the State through an online web application. The FAMLI Division expects the online web application to open by the Spring of 2025.
Registered employers will automatically enroll into the State Plan administered by the FAMLI Division. The State Plan will provide a seamless way to comply. Alternatively, an employer may apply to use a commercial or self-insured plan.
Read more about commercial and self-insured plans.
State Plan contribution rates
The rate will depend on payroll size:
15 or more employees: the rate will be 0.90% of covered wages up to the Social Security cap. Employers may withhold up to half (0.45%) of the contribution rate from the employees’ pay.
Fewer than 15: the rate will be 0.45% of covered wages up to the Social Security cap. Employers may withhold up to this full amount from the employees’ pay.
While the Department of Labor sets the contribution rate for the State Plan, private plans will set their own rates. Employees can’t be charged more in a private plan than they would be through the State Plan.
Each February, the Department will announce a contribution rate for the following State fiscal year (July 1-June 30). It may change over time, but under current law, the total rate cannot go over 1.2% of wages up to the Social Security cap.
Employers in the State Plan won’t be charged more depending on worker usage. Private plans may be structured differently.
Calculating contribution amounts and payroll size
Employers will submit wage and hour reports each quarter. Those reports will determine the amount of contributions due to the State. Employers will need to collect and make contributions for anyone working in a position localized in Maryland. Workers cannot opt out of participating.
An employer can request an official determination regarding payroll size which could result in a lower employer contribution rate. Employers will be required to disclose the average number of workers who are out-of-state. The Division will add that number to the average number reported in wage and hour reports during the four previous quarters. If the total is below 15, employers will qualify for the lower contribution rate. The determination will be effective for one year.
Collecting and submitting contributions
If an employer chooses to collect contributions from workers, the employer must do so through payroll deductions at the time wages are paid. Employers are not allowed to collect contributions from workers after the pay cycle ends.
Employers will be responsible for electronically remitting contributions on a quarterly basis to the State through our website, which is expected to be available in the Spring of 2025.
Reporting requirements
Employers will be responsible for filing quarterly wage and hour reports with the Division. These reports will be the basis for calculating the amount due each quarter. All employers will be required to file these reports, even if they participate in a private plan.
The Division will share sample reporting templates.
Notifying workers about paid family and medical leave
Employers will be required to notify workers about paid family and medical leave starting in January 2026:
- To welcome 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
The Division will create sample notices for employers to use.
Notifying employers when a worker files a claim
Employers may require workers to provide 30 days notice for foreseeable leave. For leave that is unexpected, employers may require workers to give notice as soon as is practicable.
Additionally, the Division will electronically notify employers when a worker files a claim. The employer will have 5 business days to respond. The employer can tell the Division to proceed with processing the claim or provide additional information about the claim.
The employer will be notified each time there is a status change to the application (determination, appeal request, appeal, etc…).
Maryland’s FAMLI is different than the federal Family and Medical Leave Act (FMLA)
The biggest difference is that FAMLI offers paid time off, while FMLA ensures workers have access to unpaid time off. Also, FAMLI’s eligibility rules include more workers and the self-employed.
When an event qualifies for leave through both FMLA and FAMLI, both leaves should run at the same time. There will be limited cases when an event only qualifies for FAMLI. In that case, an individual does not use any FMLA time while taking FAMLI.
FAMLI is different than paid sick days
Paid sick days and FAMLI serve different purposes. It's not a perfect comparison, but one way to think about it is that paid sick days are for everyday colds. FAMLI is for battling a serious illness or dealing with a life-changing event.
How FAMLI interacts with employer-provided leave
Employers cannot require workers to use other types of paid time off before using paid family and medical leave.
If an employer offers leave specifically designed to cover a FAMLI qualifying event, such as parental leave, the Division is referring to that as Alternative FAMLI Purpose Leave (AFPL). If an employer offers AFPL, they will be able to require that workers take their AFPL concurrently with FAMLI leave.
Employers may allow workers to use accrued leave to top off their FAMLI benefit up to 100% of their wage. Workers must agree to using their accrued leave in this way.
The weekly benefit amount through FAMLI will not be reduced or offset to take into account Short Term Disability (STD) benefits. When FAMLI is used for a worker's own serious health condition, there may be some overlap with a worker's eligibility for an employer’s short term disability policy. Employers may choose to amend their STD policy to take into account FAMLI benefits. For example, employers may “top up” the FAMLI wage replacement percentage to 100% of the worker’s regular pay or increase the duration of leave related to the health event beyond the 12 weeks provided by FAMLI.
Leave duration
Workers will be able to request up to 12 weeks within a 12 month period. To determine how much leave to approve, the Division will review three things: 1) the number of weeks the worker requested; 2) the amount of leave supported by the medical professional signing the leave certification (if required); and 3) how much of the worker's FAMLI leave is still available for the year. The Division will approve leave for the lowest amount of time.
If the worker experiences both their own serious health condition and welcomes a child in the same year, they could be eligible for up to 12 weeks per event for a total of up to 24 weeks. While the two events could be related, they do not have to be.
Workers will be able to take leave on a continuous or an intermittent basis. Intermittent means not all at once. Employers and workers should agree on the intermittent schedule.
Job protection benefits under FAMLI
An employer must hold a worker’s position while they are on FAMLI leave. The worker should return to the same or an equivalent position.
Preventing fraud
Preventing fraud is a top priority for the FAMLI Division and the Maryland Department of Labor, and we are building the system accordingly. In addition, the Division will notify employers when a worker submits a claim and again after a decision. Employers will have the opportunity to share pertinent information with the Division, including proof that a worker is not eligible for leave.
Benefits for employers
- Research shows that employers will benefit from reduced turnover, increased productivity, greater workplace attachment, and boosted morale. Because FAMLI is insurance, it also provides employers with cost predictability while a worker is away, compared with the unpredictable cost of paying a worker’s wages while they are out.
- FAMLI levels the playing field so small employers can compete for top talent with this valuable and affordable benefit, which historically has been offered far more often by only large employers.
- With FAMLI, Maryland will remain an attractive place to live and work, especially as several nearby jurisdictions, including Washington, D.C., Delaware and New Jersey, administer paid family leave programs of their own.
How can I prepare now?
- Sign up to receive updates including details about when you can start submitting information
- Include contributions in future budget planning
- Consider how existing benefits may interact with FAMLI
I still have questions, where can I learn more?
Here are responses to the most frequently asked questions from employers about contributions, claims and private plans:
Note: Regulations applicable to FAMLI have not been finalized. Therefore, the information on this page is subject to change. The latest information can be found at paidleave.maryland.gov
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