Maryland’s Family and Medical Leave Insurance program, now officially called Maryland FAMLI, has been updated with new deadlines. Employers will need to make important decisions before the end of 2026.
What Is Maryland FAMLI?
Maryland FAMLI is a state-mandated payroll contribution program that funds partially paid, job-protected leave for eligible employees. It covers:
- Personal medical leave
- Bonding with a new child
- Caring for a family member with a serious health condition
- Qualifying military exigencies
Who Does It Apply To?
Any employer with at least one employee working in Maryland must comply.
Employees are eligible for benefits after working 680 hours during the prior year. All employees localized in Maryland must participate, and there are no opt-outs.
Key dates for State Plan participants include:
- January 1, 2027: Payroll contributions begin.
- April 30, 2027: The first quarterly contribution payment is due, covering first-quarter 2027 wages.
Contribution Rates
For 2027, the contribution rate will be 0.9% of wages, split evenly between employers and employees:
- 0.45% employer contribution
- 0.45% employee contribution
Employers with fewer than 15 total employees, including out-of-state employees, are exempt from the employer contribution. However, they must still withhold the employee portion.
The contribution rate cannot exceed 1.2% of wages, up to the Social Security wage cap, in any year.
State Plan vs. Private Plan
Employers have two options:
- State Plan: Employers contribute directly to the state. Contributions begin January 1, 2027, and the first payment is due April 30, 2027.
- Private Plan: Employers may purchase a commercial insurance policy, which is available to any employer, or self-insure if they have 50 or more Maryland employees. Private plans must meet or exceed State Plan benefits. A DOI must be filed by November 15, 2026.
A potential advantage of a private plan is the ability to integrate with an existing disability carrier for a more streamlined claims experience, as well as flexibility to provide plan benefits above the state minimum.
