February 25th, 2025
Maryland Officials Propose Delay to New Law Providing Paid Family Leave
Posted in: Employment Law Tagged: Darla J. McClure
Author: Darla J. McClure
The Family and Medical Leave Insurance (FAMLI) Program, which was established by the Time to Care Act and scheduled to begin on July 1, 2025, is expected to be delayed. Due to Maryland’s budget deficit and new federal policies, Maryland officials have proposed pushing the start date of the FAMLI by 18 months.
Under this proposal, payroll deductions that would have begun on July 1 (with benefits becoming available in 2026) would now start Jan. 1, 2027, instead, with benefits becoming available on Jan. 1, 2028.
Under the new law, eligible employees will receive 12 weeks of job protected leave with wage replacement benefits of up to $1,000 per week. The payroll tax will be used to fund the FAMLI. For businesses with 15 or more employees, the cost is shared between both employer and employee. Those with less than 15 employees, the tax is paid by the employee.
Stay tuned. We expect there will be a decision on this proposal from the General Assembly in the coming weeks.
If you have any questions about the law or wish to discuss how best to proceed if a delay occurs, please contact a Stein Sperling employment law attorney.
