Employee contributions begin next July; Employers, with at least 15 employees, begin next October.
You might remember that in 2022, the Maryland General Assembly passed a law that set up a
paid family and medical leave insurance program known as Maryland’s Family and Medical
Leave Insurance (FAMLI). And the program becomes active in July of 2025.
As with any new legislation, it’s critical that ABC members of Greater Baltimore meet all
requirements, including the internal requirements that involve your own record keeping, and the
external requirements that pertain to your interaction with your employees and with the State of
Maryland.
The good news is that you have time to prepare. The following information has been compiled to
allow you to do just that.
What you Need to Know about FAMLI now:
Unlike the federal Family Medical Leave Act (FMLA), which only guarantees unpaid leave, the
Maryland bill provides paid leave. This new program will allow employees to take up to 12
weeks of paid leave to care for themselves or a family member.
Unlike Paid Sick Leave, which covers minor illnesses, FAMLI covers serious health conditions
or major life events. Those events include welcoming a child (through birth, adoption, or foster
care), caring for a serious health condition (of the employee or a family member), or managing a
family member’s military deployment.
The bill identifies an employer as: Any entity that pays wages or salary to at least one worker in
Maryland (except the federal government).
The bill identifies a covered worker as: Any individual receiving wages or salary for work
performed in Maryland (excluding independent contractors and federal employees). All
Maryland-based employees must participate.
Starting July 1st, 2025: Payroll deductions begin.
By October 2025: the first employer payments will be due to the State.
- The contribution rate will be 0.9% of covered wages and split between employer and employee, each paying 0.45%.
- Small businesses with 14 or fewer employees are exempt from the employer
portion, but their employees will still contribute 0.45%. - Employers must submit quarterly wage
and hour reports to determine contribution amounts.
Employers can opt for a private or self-insured plan, but private rate plans cannot exceed the
State plan rate. And when leave is required, benefits will be paid by either the State or the
employer’s private plan.
Beginning January 2026: employers must inform workers about their rights to FAMLI.
Starting July 1, 2026: the program will allow employees to take up to 12 weeks of paid leave to
care for themselves or a family member.
Employers may require workers to give 30 days’ notice for foreseeable leave. And for
unexpected leave, notice must be given as soon as practicable.
For a more detailed look at the plan with FAQ’s, visit the State of Maryland website:
https://paidleave.maryland.gov/Pages/default.aspx
As always, ABC is here to help.
ABC Greater Baltimore is in the planning stages of scheduling a webinar where members can
hear the latest developments of FAMLI and ask questions of experts on the subject. Keep an eye
on this space for the date and time of that valuable member benefit.