What is FAMLI?
Maryland is preparing to launch a new paid family and medical leave system! Starting in 2026, the Maryland FAMLI system will ensure that workers are able to take time away from work to care for themselves or a family member and still receive up to $1000 a week for up to 12 weeks.
FAMLI was established through the Time To Care Act passed by the Maryland General Assembly. Maryland is the 11th state (including DC) to pass such a law. Three more have since followed.
Who will be covered?
Any worker in MD who has worked 680 hours in the past 12 months. Self-employed individuals can also elect to participate.
When will workers use paid family and medical leave?
- To care for themselves or a family member with a serious health condition
- To welcome a child
- To prepare for a family member’s military deployment
How does FAMLI work?
All employers will be required to provide family and medical leave insurance. Employers will either enroll in the State Plan run by the Maryland Department of Labor’s FAMLI Division or seek approval for a commercial or self-administered plan with benefits equal to or greater than those provided by the State Plan.
The Division will release more information about this process in 2024.
Starting in January 2026, while an employee is out on leave, either the State Plan or the employer’s private plan will provide partial wage replacement to the employee.
How much will I pay for this?
For those enrolled in the State Plan:
- The rate, which will become effective on October 1, 2024, will be 0.90% of covered wages up to the Social Security cap, and will be equally divided between employees and employers with 15 or more workers.
- Employers may choose to cover part or all of their employees’ contributions.
- Employers with 14 or fewer employees are not required to contribute but will still collect payments from their workers.
While the Department of Labor sets the contribution rate for the State Plan, Private plans will set their own rates.
Employees cannot be charged more in a private plan than they are in a public plan.
How is paid family and medical leave different from existing law?
FAMLI will provide wage replacement while a worker takes time away. The law provides protections so workers can have confidence that they will be able to return to their job after their leave.
How will FAMLI benefit employers?
Employers will benefit from reduced turnover, boosted morale, increased workforce attachment and greater cost predictability while an employee is away. FAMLI also levels the playing field so small businesses can compete for top talent with this valuable and affordable employee benefit. With FAMLI, Maryland will remain an attractive place to live and work.
Click here to watch the Maryland Chamber Webinar featuring MD Dept. of Labor
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