Let’s Talk FAMLI: What Maryland’s New Paid Leave Program Means for You
Attention Maryland business owners: There’s a new star player in the paid leave game, and it’s time to get your team ready. FAMLI, or the Paid Family and Medical Leave program, ensures that eligible Maryland workers can take up to 12 weeks of paid leave (up to $1,000/week) for qualifying life events – such as a new baby or serious illness.
While the contribution kickoff isn’t until January 1, 2027, and benefits will not start until January 3, 2028, it’s important to start preparing your game plan now.
Read on to learn how the new FAMLI program could affect you as an employer.
FAMLI vs. FMLA vs. Maryland’s Paid Sick Leave: What’s the Difference?
FAMLI: Provides paid, job-protected leave for qualifying life events
FMLA: Offers unpaid, job-protected leave for similar events, specifically to employers
with 50+ employees
Maryland’s Paid Sick Leave: Covers short-term illnesses such as a cold
Who’s on the Roster?
Any employee who’s logged at least 680 hours in a Maryland-based position over the past year can be eligible.
**Note: Independent contractors and federal government employees are not included.**
Your Role as Coach
If you have at least one Maryland player on your roster, you’re in the game. But there are a few different plays you can choose from to make sure you stay in bounds.
The State Plan: You’re automatically enrolled by the Maryland Department of Labor (DOL).
The Commercial Insurance Plan: You can choose to hand off claims and costs to an insurer for a fixed premium, but make sure to get it pre-approved by the DOL to avoid a flag on the play.
The Self-Insured Plan: Be your own offense, managing claims and costs directly. You’ll still need pre-approval from the DOL before you snap the ball.
Regardless of the play you choose, it’s important not to drop the ball on reporting. Make sure to keep your playbook sharp by sending your quarterly wage and hour reports to the Maryland Department of Labor.
Next Steps: Get FAMLI-Ready
Prepare for Payroll Deductions
If you have 15+ employees: Beginning January 1, 2027, you can deduct up to 0.45% of wages from your employees’ paychecks (50% of the total rate), with you, the employer, covering the remaining 0.45%.
You can also choose to pay your employees’ shares as a voluntary benefit, covering the full premium.
If you have fewer than 15 employees: Your employees may be responsible for covering up to 100% of the premium through payroll deductions.
Keep Your Team in the Loop
Transparency is Key. Plan how you’ll roll out the FAMLI playbook to ensure everyone is informed and ready. Consider setting reminders to update your employees during key events such as:
6 months before it starts (July 2026)
At the time of hire
Annually
When a worker requests leave
Whenever you become aware that a worker’s leave may qualify
Evaluate Your Compliance Game Plan
Weigh the pros and cons of each plan to determine which works best for your organization's culture, budget, and administrative capacity.
Prepare for Reporting
Familiarize yourself with the quarterly wage and hour reporting requirements. Practice makes perfect for smooth filing.
By staying proactive and familiarizing yourself with the requirements, you can help ensure your business stays compliant and effectively supports your workforce.
Questions
Are you ready to ensure your business is prepared? Contact our team of business advisors to find the best plan based on your business’s size and capability.