On April 8, Maryland enacted House Bill 102, further postponing the implementation of the state’s Family and Medical Leave Insurance (FAMLI) program. This latest delay, recommended by the Maryland Department of Labor, is intended to provide employers and employees with additional time to prepare for the program’s requirements.

House Bill 102 marks the third consecutive year that the launch of Maryland’s FAMLI program has been delayed. In addition to the new timeline, the legislation revises several key aspects of the program, including definitions, contribution rates, reporting requirements, and introduces new provisions for self-employed individuals.

Overview of Maryland’s FAMLI Program

The FAMLI program is designed to provide eligible employees with paid leave benefits for a variety of family and medical reasons, including:

• 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.

Eligible employees may receive up to 12 weeks of paid leave per year, with job protection and weekly benefits of up to $1,000 for qualifying reasons. If the employee 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. The program requires employers to both pay and withhold contributions from employee wages, with these requirements now set to begin on January 1, 2027. Employees may begin submitting benefit claims between January 1, 2027, and January 3, 2028, although these dates may be adjusted by the Secretary of Labor.

Key Program Details

• Contribution Rates: The total contribution rate is capped at 1.2% of an employee’s wages, split evenly between employers and employees (each responsible for 50%). Employers may choose to cover all or part of the employee’s share.
• Self-Employed Individuals: By July 1, 2028, the Department of Labor must establish regulations for an optional enrollment program for self-employed individuals, including details on contributions and benefits.
• Annual Rate Announcement: The Department of Labor will announce the total contribution rate for each upcoming year by November 1.
• Benefit Amounts: Weekly benefits are based on the employee’s average weekly wage and the state average. The minimum weekly benefit is $50, and the maximum is $1,000 through December 31, 2028. Beginning in 2029, the maximum benefit will be adjusted annually based on the Consumer Price Index.

Employer Coverage and Exemptions

All employers with at least one employee in Maryland are covered by the FAMLI program. However, employers that offer their own family and medical leave insurance benefits that are at least equivalent to those provided under the state program may apply for an exemption. To qualify, employer plans must be insured by a carrier holding a certificate of authority from the Maryland Insurance Commissioner.

Next Steps for Employers

Maryland employers should update their compliance timelines to reflect the new contribution and benefit claim dates. It is important to monitor forthcoming regulations and guidance from the Department of Labor, particularly regarding program implementation and requirements for self-employed individuals. Employers should also review their current leave policies to determine whether they may qualify for an exemption from the state program.