In a significant development, the Maryland Department of Labor has proposed delaying the implementation of the state’s Family and Medical Leave Insurance (FAMLI) program. This postponement aims to provide additional time for businesses and employees to prepare for the program’s rollout, especially in light of recent federal workforce reductions and funding shifts impacting Maryland’s economy.
Background on FAMLI
Enacted in 2022, the FAMLI program is designed to offer Maryland workers up to 12 weeks of paid leave to care for themselves or family members facing serious health conditions, welcome a new child, or address needs related to a family member’s military deployment. The program ensures job protection and provides a portion of the employee’s wages during the leave period.
Proposed Changes
Originally, the FAMLI program was set to begin payroll contributions on July 1, 2025, with benefits becoming available on July 1, 2026. However, the Maryland Department of Labor has recommended the following adjustments:
Payroll Deductions Start Date: Postponed to January 1, 2027.
Benefits Availability Date: Deferred to January 1, 2028.
This proposed delay is intended to grant businesses and employees more time to adapt to the new system, especially considering the economic uncertainties arising from recent federal decisions. Maryland Labor Secretary Portia Wu emphasized the state’s commitment to supporting its residents during these challenging times, stating, “State agencies like MD Labor are laser-focused on supporting Marylanders as we all respond in real time to the cascading impacts of federal decisions.”
Legislative Actions
In response to the proposed delay, Maryland state Senator Stephen Hershey introduced Senate Bill 355, seeking to officially extend the FAMLI program’s effective dates by two years. During a Senate Finance Committee hearing on February 5, 2025, concerns were raised about the readiness of the program’s implementation and its potential economic impact on the business community.
Implications for Employers and Employees
If the proposed delay is enacted, employers will have until January 1, 2027, to begin payroll deductions for the FAMLI program, with employees becoming eligible for benefits starting January 1, 2028. This extension provides additional time for businesses to adjust their payroll systems and for employees to plan for the upcoming changes.
The Moore-Miller administration remains dedicated to implementing a robust paid family and medical leave program that benefits workers while maintaining the state’s economic competitiveness. The Maryland Department of Labor continues to develop the necessary digital infrastructure for claims processing and financial management to ensure a seamless transition once the program is launched.
Stay Informed
As the situation evolves, it’s crucial for both employers and employees to stay informed about legislative developments related to the FAMLI program. For the most current information and updates, visit the Maryland Department of Labor’s official FAMLI page.
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