June 16th, 2026

Is Your Business Ready for Maryland’s New Family and Medical Leave Insurance Program?

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Author: Alexander J. Kordel

Maryland’s Family and Medical Leave Insurance (FAMLI) program will allow eligible workers up to 12 weeks of paid, job-protected leave for major family and medical needs, with benefits of up to $1,000 per week. For employers, this means navigating new reporting responsibilities, contribution rates, and critical deadlines. As the launch date draws near, here’s what you need to know to ensure your business remains informed, prepared, and protected.

I. When can you expect FAMLI to start?

After facing multiple delays, the Maryland Department of Labor has begun taking major first steps to make the program a reality, with FAMLI contribution rates and payroll deductions becoming available starting January 2027 and benefits beginning in January 2028. Employers will be required to submit quarterly wage and hour reports to FAMLI starting April 2027, and employee notice requirements starting July 2027.

Because this program is being introduced in stages, employers will have a limited window to update payroll systems, train personnel, and notify employees before obligations take effect. Employers should use this time to familiarize themselves with the process of reporting and contributions as the state prepares for a full rollout.

II. Understanding Employee Benefits and Rights

When benefits become available, eligible employees will be able to take paid leave from work for their own serious health condition, to care for a family member with a serious health condition, to bond with a new child, or to manage urgent needs rising from a family member’s deployment. To be eligible for FAMLI leave, an employee must have worked a minimum of 680 hours during the 12-month period preceding the start of leave. In special circumstances involving both family and medical leave, employees may qualify for an additional period of leave.

Leave Stacking for Concurrent Qualifying Events

FAMLI provides up to 12 weeks of annual leave, and employers must continue health benefits while the employee is out on leave. However, an employee who experiences both a serious health condition (which could include a pregnancy-related condition or recovery from childbirth) and the need to bond with a new child may be entitled to utilize leave for both qualifying reasons. In such cases, leave may be taken consecutively, for example, an employee may first use medical leave for her own recovery and then use family leave to bond with her child. This would entitle an employee of up to 24 weeks of leave.

Employers must allow employees granted leave to return to their original position, or an equivalent position after their leave period has ended. Employers should be notifying their employees about these benefits and their rights as the implementation date approaches.

III. What are Important Requirements You Should Know?

FAMLI may be funded through contributions from both employees and employers. For the 2027 benefit year, Maryland has reaffirmed a contribution rate of 0.9%, which can be split evenly between employers and employees, with employers being able to withhold up to half from employee wages. However, employers with fewer than 15 employees are subject to different contribution requirements.

Businesses have flexibility in how they provide this benefit. Employers can choose whether to participate in the State’s offered plan or apply for a private plan, if that more effectively addresses the needs of their team and employees. Keep in mind that private plans must be approved by the FAMLI division and are still subject to quarterly wage and hour reporting requirements.

Employers will be responsible for reporting employee data and contributions to the state, starting April 2027. Submitting these quarterly wage and hour reports to FAMLI will help calculate contribution amounts and determine payroll size and eligibility for a lower contribution rate. Employers should take note of the critical deadlines associated with these filings that businesses must comply with.

At several points during employment, employers will be legally required to provide notices to their employees regarding their rights and the details about the FAMLI program. Required notice dates include:

During registration, employers must identify an Authorized Officer, and registration is required for any business with at least one employee in Maryland. Employers are encouraged to stay updated on the specific contribution rates announced by the Department of Labor and begin to implement them as they are announced.

IV. How Should You Prepare Now?

Now that the FAMLI program is officially going into effect, employers must prepare proactively so they are ready when registration opens in Fall 2026 and contributions begin in January 2027. To help navigate these changes, there are a few actions you can take today to guarantee a smooth implementation process for you and your employees.

Immediately going forward, we recommend designating an Authorized Officer for your company, as they will be responsible for creating your FAMLI employer profile and registering your company once registration opens. Begin discussing FAMLI contributions and benefits with your employees and your team and create a timeline to implement FAMLI contributions in your future budget planning. Take time to learn more about contribution and withholding rules and consider whether your business would benefit the most from the state plan or a private plan, and determine how your business’s existing payroll and leave benefits may interact with FAMLI. Working with experienced labor and employment counsel will help guide you through this process and ensure your business is informed, prepared, and protected.

This article is for informational purposes only and does not constitute legal advice. If you have any questions about the law or wish to discuss how best to prepare your business, please contact a Stein Sperling employment law attorney.

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