Employment Law Update

*Previous articles on the Time to Care Act (TCA) of 2022, which established the Family and Medical Leave Insurance (FAMLI) program, can be found here. 

On May 6, 2025, Governor Wes Moore signed House Bill 102 into law, which delays the implementation of the anticipated Maryland Paid Family and Medical Leave Insurance (FAMLI) program. 

Background

Under the FAMLI program, eligible employees may apply to the state-administered FAMLI Fund, which will provide up to 12 weeks of paid family and medical leave, with the possibility of another 12 weeks for parental leave. The law provides for weekly wage replacement of at least $50 and up to $1000, which will be equally funded by employee and employer contributions. The total rate of contribution is currently set at 0.9% of covered wages up to the Social Security cap, which is $176,100 in 2025. Employers can opt out of the state plan if they provide an employer-sponsored plan (referred to as an Equivalent Private Insurance Plan or “EPIP”) that meets or exceeds the benefits provided by the state plan. Under certain circumstances, FAMLI-qualifying leave may be taken on an intermittent schedule.

Delayed Implementation

Payroll deductions and benefit availability, which were set to begin on July 1, 2025 and July 1, 2026 respectively, are now delayed by 18 months.

New Implementation Dates

January 1, 2027- Payroll deductions begin
April 2027 (date unspecified)- Employers remit first payment to the State
January 3, 2028- Benefits become available for workers

New Rules for Self-Employed Individuals

HB 102 also requires the Secretary of Labor to adopt regulations by July 1, 2028, establishing an optional enrollment program for self-employed individuals to be able to participate in FAMLI. This may delay self-employed individuals’ participation in FAMLI to as late as fiscal year 2029, although it may be sooner if regulations are adopted before the deadline. The regulations must include details about the enrollment process, contribution rates, and benefit rates. 

Next Steps for Employers

While Marylanders are still in a waiting period, the next practical steps for employers include:

• Preparing for the costs of the program
• Deciding whether to modify existing paid leave policies and collective bargaining agreements
• Determining whether to opt into the state plan or offer an employer-sponsored plan and evaluate for cost and compliance with state requirements
• Consulting with their payroll providers concerning implementation of the contribution requirements and considering how their business will incorporate FAMLI-eligible leave into their existing leave program

If you have questions about FAMLI, or other employment law issues, contact Morgan Thomas Harried or Chuck R. Bacharach at the email and phone numbers listed below.

Morgan Thomas Harried 
410-576-4192 • mharried@gfrlaw.com

Chuck R. Bacharach
410-576-4169 • cbacharach@gfrlaw.com