Reprieve for Maryland employers—FAMLI implementation delayed (again)

Many Maryland employers have been dreading the start of the implementation of the state’s Family and Medical Leave Insurance (FAMLI) program. On April 7, 2025, however, the Maryland Legislature passed a bill that will again delay the start date for the payroll deductions and benefits for another 18 months. The bill awaits Governor Wes Moore’s signature. The Maryland Department of Labor supported the bill for the 18-month delay, citing federal funding freezes and instability, uncertainty, and rapidly changing policy decisions on the federal side, as well as the state’s budget deficit. Another bill sought a two-year delay but was unsuccessful.

This isn’t the program’s first delay. Notably, the law was vetoed after passage by then-Governor Larry Hogan, but the veto was overridden by the Maryland General Assembly. The start date had been delayed twice. The current extension of the payroll deductions for employee and employer contributions moved out from July 1, 2025, to January 1, 2027, with the date for claims for benefits pushed back from July 1, 2026, to at least six months after contributions begin, but no later than January 3, 2028.

FAMLI history

In 2022, Maryland became one of only a handful of states to mandate paid family medical leave. Under the program, Maryland employees will be entitled to up to 12 weeks of paid leave in a 12-month period to care for themselves or family members. The number of benefits is based on the employee’s average weekly wage and is capped at $1,000 per week.