Paid Family and Medical Leave is coming to Maryland
Maryland is preparing to launch a paid family and medical leave program. Starting January 2028, 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 private plan that provides benefits equivalent to or greater than the FAMLI program. When a worker needs to take leave, either the State or the private plan will pay the worker a portion of their salary.
Important updated dates
January 1, 2027: Contribution period for the State Plan begins.
This means payroll deductions will begin on January 1, 2027, and employers will remit the first payment to the State in April 2027.
January 3, 2028: 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 by January 3, 2028.
Employers are not currently required to take any action and should not receive any formal communications from the Maryland Department of Labor (MD Labor) at this time. To report suspicious communications, please contact paid.leave@maryland.gov.
Below, we’ve included information to answer commonly asked questions. You can also
sign up to receive timely updates, including details about when you can start registering for FAMLI.
How will paid family and medical leave benefit 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.
Will all employers have to participate?
All employers with at least one worker in Maryland will be required to offer paid family and medical leave insurance, either through FAMLI or a private plan. There are no exemptions.
How will FAMLI interact with employer-provided leave?
Employers cannot require workers to use other types of paid time off before using FAMLI.
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 off” 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.
When will a worker be able to use paid leave?
- 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
Who will be eligible 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.
How is Maryland’s FAMLI different from 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.
How is FAMLI different from 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 will employers be notified 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, for employers enrolled in the State Plan, FAMLI 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…).
How will employers be notified 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, for employers enrolled in the State Plan, FAMLI 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…).
What will the duration of leave be?
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.
What job protection benefits will be available through 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.
How will employers register and select plans?
Employers will register with the State through FAMLI’s website.
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 private plan.Read more about private plans.
What will the contribution rate be?
The initial contribution rate will be set by May 1, 2026. That rate will be effective January 1, 2027-December 31, 2027.
Each November, starting in 2027, MD Labor will announce a contribution rate for the following calendar year. 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 may withhold up to 50% of the contribution amount from their employees’ pay. Small employers, those with fewer than 15 total employees (counting employees within and outside of Maryland), will only be responsible for remitting 50% of the contribution amount due, which may be withheld from their employees’ pay.
While MD Labor sets one contribution rate for all participants in 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.
Employers in the State Plan won’t be charged more depending on worker usage. Private plans may be structured differently.
How will contribution amounts and payroll size be calculated?
Employers will submit wage and hour reports each quarter, starting April 2027. 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.
How will contributions be collected and submitted?
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 the FAMLI website.
What will the reporting requirements be?
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.
How will workers be notified about paid family and medical leave?
Employers will be required to notify workers about paid family and medical leave.
What steps will be taken to prevent 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.
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
Note: Regulations applicable to FAMLI have not been finalized. Therefore, the information on this page is subject to change.
