What is Maryland’s Proposed FAMLI Plan?
In April 2022, following the lead of states like Connecticut, Massachusetts, New Hampshire, Washington and Washington D.C., Maryland enacted their own Paid Family & Medical Leave Insurance Program (FAMLI). The program is designed to provide partial compensation and job protection for employees to tend to the health and well-being of themselves or their family members. FAMLI benefits will be funded by employer and employee contributions via payroll deductions.
The program was set to ‘go live’ in July 2026 with contributions starting in July 2025, but earlier this month, Maryland Labor Secretary, Portia Wu, proposed delaying the program for another 18 months. Wu cited “instability and uncertainty” regarding federal funding as the reason for this proposed delay and emphasized the importance of getting the program right for workers.
This is not the first time it has been delayed. Originally, the program was set to start issuing benefits in January 2025. The proposed delay will require legislative action, which will likely be in the coming weeks. With overwhelming public and state support, there is little doubt Maryland’s FAMLI program will eventually get off the ground but for now, workers will need to play the waiting game.
Updated Deadlines For Maryland’s Paid Family & Medical Leave Insurance Program:
January 1st, 2027 (Was July 1st, 2025) – Employee/Employer contributions begin
January 1st, 2028 (Was July 1st, 2026) – FAMLI benefits become payable
Proposed State Plan Contribution Rates
15 or more employees: The rate will be 0.90% of covered wages up to the Social Security cap. Employers may withhold up to half (0.45%) of the contribution rate from the employees’ pay.
Fewer than 15: The rate will be 0.45% of covered wages up to the Social Security cap. Employers may withhold up to this full amount from the employees’ pay.
Source Maryland.gov
Benefits Payable Under FAMLI per Maryland.gov
Workers will receive job protection and be able to take time away from work to care for themselves or a family member and still be paid up to $1,000 a week for up to 12 weeks. FAMLI is an insurance program. Employers and workers will make contributions into a fund administered by the State. Alternatively, an employer may apply to use a commercial or self-insured plan. When a worker needs to take leave, either the State or the private plan will pay the worker a portion of their salary.
For More Information:
- https://paidleave.maryland.gov/employers/Pages/home.aspx
- https://marylandmatters.org/2025/02/14/amid-federal-uncertainties-state-officials-propose-delaying-paid-family-leave-again/
- https://www.cbsnews.com/baltimore/news/maryland-department-of-labor-family-medical-leave-fmla-program/
About the Author
TIn his role at HWP, Marty acts as an employee benefits advisor focusing on helping employers of all sizes and industries implement and enhance their benefits programs. He also is well versed in Individual Life insurance and Disability products.
TMarty holds a Business Marketing & Management Degree from Fairmont State University. He is also a Registered Employee Benefits Consultant (REBC) and is currently working to attain his Chartered Life Underwriter (CLU) designation from the American College of Financial Services.
Email: mbonifant@hwphillips.com
Phone: 202-351-0269
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