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Maryland’s FAMLI Program Is Coming: Three Things Employers Should Do Now

Posted August 18, 2026 at 7:38 AM

Business & Tax, Employment Law, News & Events

Maryland’s Family and Medical Leave Insurance (FAMLI) program will soon provide eligible employees with job-protected, paid family and medical leave benefits. Employees may receive partial wage replacement when taking leave for reasons such as the birth or adoption of a child, the employee’s own serious health condition, caring for a family member with a serious health condition, or certain military-related circumstances.

The program will be implemented in two phases:

  • January 1, 2027: Employers must begin withholding employee FAMLI contributions through payroll and remitting those contributions to the State. Most employers will also be required to make employer contributions to the program, while employers with fewer than 15 employees generally are exempt from the employer contribution requirement.
  • January 2028: Eligible employees may begin applying for paid FAMLI benefits.

Although payroll contributions do not begin until 2027, employers should begin preparing now. Here are three things employers should do:

1. Decide Whether a Private Plan Is Right for Their Business
Most employers will participate in Maryland’s State Plan. However, employers may apply to offer an approved private plan that provides benefits at least equal to those available under the State Plan. Employers considering this option should begin evaluating costs, administrative requirements, and available insurance products well before the applicable filing deadlines.

2. Prepare Payroll and Budget
Beginning January 1, 2027, employers must begin withholding FAMLI contributions from employees’ wages and remitting those amounts to the State. Most employers will also be required to contribute to the program. Now is the time to work with the business’s payroll provider and finance team to ensure payroll systems are ready and to account for these new obligations in the 2027 budget. 

3. Review Leave Policies and Procedures
FAMLI will operate alongside the Family and Medical Leave Act (FMLA), the Americans with Disabilities Act (ADA), and other state and local leave laws. Employers should review their employee handbook, leave policies, and leave administration procedures to ensure they are prepared to comply with the new requirements. Employers should also understand the protected-leave and job-restoration rights that may apply when an employee takes qualifying FAMLI leave, as well as how FAMLI leave will interact with FMLA and other legally protected leave. Supervisors and HR personnel should also be trained to recognize when an employee may have rights under FAMLI and other applicable leave laws and to avoid actions that could interfere with or retaliate against an employee’s exercise of protected leave rights.

Maryland’s FAMLI program marks a significant change in the way employers administer employee leave. By planning ahead, employers can ensure compliance with the new law, reduce administrative burdens, and make the transition as seamless as possible when the program takes effect.

Scott Mirsky is a principal in Miller, Miller & Canby’s Employment Law and Employment Litigation practice. He focuses his practice on advising and litigating employment and business disputes, with more than 20 years of experience representing clients in the Washington, DC metropolitan region. He may be reached at samirsky@mmcanby.com.

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