Maryland’s Family and Medical Leave Insurance (FAMLI) Program provides paid, job‑protected leave for qualifying leave reasons. Recently adopted finalized regulations establish how the program will operate, with payroll contributions beginning January 1, 2027 and benefits expected to be payable starting January 2028.
KEY REGULATORY PROVISIONS
Who is covered
- Employees with 680 hours of qualified Maryland employment are eligible.
- Independent contractors and certain sole owners are excluded.
- Employers of all sizes are generally covered, though small employers have reduced contribution obligations.
Available leave and benefits
- Up to 12 weeks per year, with limited additional 12-week entitlement in crossover situations.
- Intermittent is leave permitted.
Contributions and administration
- 0.9% contribution rate, split between employers and employees.
- Employers remit full contributions quarterly and may withhold employee portions.
- Registration and reporting through the state’s FAMLI online system is required.
Private plan alternative
- Employers may substitute an approved private plan offering equivalent or greater benefits.
- Private plans require annual approval, employee coverage parity and strict record‑retention compliance.
- A Declaration of Intent (DOI) process will allow advance planning ahead of contribution requirements.
EMPLOYER TAKEAWAYS
- Begin operational planning well before contributions start in January 2027.
- Align Maryland FAMLI with existing FMLA and paid leave programs.
- Monitor state guidance on registration, private plans and benefit rollout timelines.
How Alight supports employers
Alight Leave Solutions specializes in state and federal leave of absence programs, including certain paid and unpaid family and medical leave. Alight Leave Solutions monitors state paid leave developments and state agency guidance and will incorporate changes where they affect the administration of leave of absence.
Disclaimer
This material is provided for general information purposes only and does not constitute legal advice. The information contained in this article reflects the legislative, statutory and/or regulatory landscape as of the date of publication. Given the evolving nature of laws, regulations and interpretive and official guidance, portions of this content may no longer be current. Readers should not rely on this content as a substitute for current compliance guidance and should consult the most up-to-date statutes, regulations and guidance and/or seek legal advice before acting on any information referenced herein.