AMLI Delayed Again — What Maryland Employers Should Still Be Doing Now
Maryland employers are still waiting for the state’s Paid Family and Medical Leave Insurance (FAMLI) program to take effect—but “waiting” doesn’t mean standing still. Earlier this year, we explained the state’s most recent delay in our post, FAMLI Delayed Again: What Maryland Employers Should Know About the State’s Paid Leave Program.
Now, as the Maryland Department of Labor proposes to push payroll contributions to January 1, 2027 and benefits to January 1, 2028, employers should use this extra time wisely. This follow-up highlights what businesses should be doing now to prepare—updating policies, coordinating payroll systems, and planning ahead for compliance before the program finally goes live.
What the FAMLI Program Does
The FAMLI program will provide paid, job-protected leave to employees who need time away from work for certain family or medical reasons, including their own serious health condition, the birth or adoption of a child, or the care of a family member. Most Maryland employers with at least one employee will be covered. Funding comes from a shared payroll contribution, split between employers and employees at a rate to be announced by the Maryland Department of Labor.
What Changed in 2025
During the 2025 legislative session, Maryland lawmakers expanded FAMLI coverage through House Bill 895, adding leave to care for military service members and their families. The expansion reflects a growing effort to align state leave rights with federal protections for military caregivers.
At the same time, the Department of Labor’s proposal delays both contributions and benefits by roughly two years. That means employers have until early 2027 to get their systems and policies ready—but waiting until then will be a mistake.
Steps Employers Should Take Now
1. Review existing leave policies.
Compare your current leave options—such as PTO, short-term disability, and FMLA—with FAMLI’s categories of leave. Identify overlap and areas requiring adjustment.
2. Plan for payroll integration.
Talk to your payroll provider about system updates to manage state-mandated contributions and reporting.
3. Communicate with employees.
Even though benefits won’t be available until 2028, employees are already asking questions. Early, accurate communication helps build trust and reduces confusion.
4. Budget ahead.
Employers will be responsible for a share of the contribution. Factor potential costs into long-term budgeting.
Why Preparation Still Matters
Employers that delay planning risk compliance errors, employee complaints, or administrative problems when the program takes effect. Getting a head start now will make the 2027 transition far easier and help avoid penalties when the Department of Labor begins enforcement.
Key Takeaways
Payroll contributions start January 1, 2027; benefits start January 1, 2028.
FAMLI applies broadly to most Maryland employers.
Start now: update leave policies, coordinate payroll, and plan communications.
A short delay is no substitute for preparation—when it comes to compliance, early action pays off.
How Luchansky Law Can Help
FAMLI compliance will touch every aspect of your business—from payroll and benefits administration to employee communications. The attorneys at Luchansky Law help Maryland employers interpret complex labor laws, design compliant policies, and avoid costly missteps before new mandates take effect.
We will continue to monitor updates from the Maryland Department of Labor and publish new guidance as the implementation date approaches.
Contact our team today to review your leave policies and ensure your business is ready.
📞 410-522-1020 | 📧 info@luchanskylaw.com
