Today, the Maryland Department of Labor (MD Labor) is proposing delaying the implementation of the Family and Medical Leave Insurance (FAMLI) program.
Recent sweeping, unprecedented changes at the federal level have created a high degree of uncertainty for Maryland employers and workers. MD Labor has already taken a number of critical steps to support Marylanders who have been or may be affected by federal actions, including employees of federal agencies, federal government contractors, and employers and employees in sectors that rely on federal funds.
Marylanders deserve a paid family and medical leave program that is efficient, accessible, and effective. To deliver on that promise, employers, workers, and MD Labor all need to be able to dedicate due time, attention, and resources to launching this new program. With the instability employers and workers are facing due to federal actions, MD Labor believes additional time is needed.
Under the new recommended plan:
Payroll deductions would begin January 1, 2027
Benefits would become available on January 1, 2028
This proposed change will require legislative action by the General Assembly in the coming weeks.
In anticipation of the delay, MD Labor will be pausing any announced regulatory timelines for FAMLI, including the process for applying to use a private plan (originally scheduled to be rolled out in May 2025) and submitting wage and hour reports.
MD Labor remains committed to building a strong paid family and medical leave program that is good for Maryland’s economy, supports workers, and keeps our state competitive. Marylanders deserve a world-class program, and we will continue to diligently make progress towards this goal by building a digital platform that prioritizes accessibility, efficiency, and accuracy; establishing healthy, secure, and strong financial systems; and increasing awareness among employers and workers across the state.