Maryland’s new Paid Family and Medical Leave law will have a significant impact on virtually every employer in the state, including many small contractors that may not realize the law applies to them.
While benefits do not begin until 2028, employer contributions start in January 2027, and there are important decisions and deadlines this fall.
This is not something to put off.
We encourage every member to take a few minutes to understand what the law requires, talk with your payroll and HR providers, and make sure your company is prepared. ABC will continue to help you navigate the law and focus on what you need to do — and when you need to do it.
Important dates for ABC members
- January 1, 2027: Payroll contributions begin April 30, 2027: First quarterly contribution/reporting deadline
- January 1, 2028: FAMLI benefits become available
Employers should also be evaluating whether the State Plan or an approved private plan makes more sense for their business.
DOES THIS APPLY TO MY COMPANY?
YES, if you have at least ONE employee working in Maryland.
There is no exemption for small employers. However, the amount the employer must contribute depends on company size:
Fewer than 15 employees:
- Employers with fewer than 15 employees receive a significant small-employer reduction: they are responsible for only 50% of the total contribution rate and may withhold that amount from employees.
- The company must collect and remit the employee contribution — up to 0.45% of wages.
- The employer may choose to pay the employee’s contribution.
15 or more employees
- Employer contributes 0.45% of wages.
- Employee may contribute up to 0.45% of wages.
- Total State Plan contribution is 0.9% of wages, up to the Social Security wage cap.
Important: For purposes of determining whether you have 15 employees, Maryland counts all employees under the same federal EIN — including employees working outside Maryland.
WHAT DOES FAMLI COVER?
Beginning January 1, 2028, eligible Maryland employees may receive paid, job-protected leave for qualifying reasons including:
- Their own serious health condition
- Caring for a family member with a serious health condition
- Bonding with a new child
- Certain needs associated with a family member’s military deployment
Eligible employees will generally be able to receive up to 12 weeks of paid leave, with additional leave available in certain circumstances.
WHAT SHOULD EMPLOYERS DO NOW?
- Register with Maryland FAMLI.
Every employer with at least one Maryland employee must register. Initial registration must be completed by an authorized company officer - Talk to your payroll provider.
- Beginning January 1, 2027, employers participating in the State Plan must begin collecting employee contributions through payroll.
- Decide who will pay the employee share. Employers may deduct up to 0.45% from employees’ wages or choose to pay some or all of that amount themselves.
- Decide: State Plan or Private Plan? Employers may participate in Maryland’s State Plan or use an approved private insurance plan that provides equivalent or better benefits. Employers considering a private plan should pay attention now: employers seeking exemption from State Plan contributions during 2027 must submit a Declaration of Intent between September 1 and November 15, 2026.
- Prepare for quarterly reporting. Employers will submit wage-and-hour reports and contributions quarterly. The first report and payment, covering January–March 2027, will be due April 30, 2027.
ONE PARTICULAR ISSUE FOR CONTRACTORS
Determining which employees are covered may be more complicated in construction because employees frequently work across state lines.
FAMLI generally applies to employees whose employment is localized in Maryland. A useful starting point: if you pay Maryland unemployment insurance for an employee, that employee will generally be treated as working in Maryland for FAMLI purposes. Contractors with employees moving among Maryland, DC, Virginia, Pennsylvania or Delaware should review this carefully.
AND REMEMBER: THIS IS MORE THAN “MATERNITY LEAVE”
FAMLI covers family AND medical leave. An employee may qualify because of his or her own serious medical condition as well as the need to care for someone else.
Beginning in 2028, employers will also need procedures for handling leave requests, coordinating FAMLI with FMLA, PTO, short-term disability and workers’ compensation, protecting an employee’s job and continuing required health benefits.
THE BOTTOM LINE?
- 2026: Get registered and make your State Plan/private plan decision.
- January 2027: Get payroll-ready.
- 2027: Get your HR policies and supervisors ready.
- January 2028: Paid leave benefits begin.
ABC Greater Baltimore will continue to provide members with practical guidance and resources as Maryland implements the program.
Please don’t hesitate to call me if you have any questions.
Thank you!
Mike Henderson, president
ABC Greater Baltimore