Maryland is preparing to implement the Family and Medical Leave Insurance (FAMLI) Program: Are you Prepared?  Maryland is on track to implement the Family and Medical Leave Insurance (FAMLI) Program, which will enable eligible employees to take paid time off for a range of personal and family health reasons beginning July 1, 2026. This initiative, administered by the Maryland Department of Labor, is designed to support employees’ ability to maintain workforce participation while managing significant life events, such as serious health conditions or family caregiving responsibilities. What the Program Offers The FAMLI Program provides employees with a wage replacement benefit of up to $1,000 per week during qualified leave periods, covering up to 12 weeks in a 12-month period. Employees facing multiple qualifying events may be eligible for an additional 12 weeks, allowing up to 24 weeks in total if necessary. Key Elements of the Program Eligibility Requirements: To be eligible, employees must have worked at least 680 hours within the 12 months preceding their requested leave. This threshold ensures that workers have an established connection to the workforce, enabling them to take advantage of the benefits after meeting this baseline requirement. Funding and Contributions: Contributions to the FAMLI fund will commence on July 1, 2025, funded by payroll contributions from both employers and employees. Employers with 15 or more employees will share this responsibility, each contributing 0.45% of wages. Smaller employers (fewer than 15 employees) are exempt from contributing, but their employees will still contribute their portion. This funding structure ensures a balanced approach, minimizing the financial impact on smaller businesses while enabling widespread access to paid leave for Maryland workers. Qualifying Events for Leave: Employees may use FAMLI benefits for various situations, including: Family Care: Caring for a newborn or recently adopted child. Serious Health Condition: Addressing a personal or family member’s significant medical issues. Military Situations: Managing issues related to the deployment or service of a family member in the military. These qualifying events are aligned with the challenges many employees face, particularly in supporting immediate family members or addressing their own health needs. Employer Compliance and Administration: The Maryland Department of Labor is responsible for overseeing the program’s implementation and compliance. Employers will need to understand their responsibilities in processing contributions, notifying employees of their rights, and ensuring that workplace policies reflect the new paid leave options. Employers may find that facilitating this leave enhances employee satisfaction and retention, as workers will have the support needed to balance personal responsibilities with their professional roles. Benefits for Employers and Employees The FAMLI Program is expected to positively impact workforce stability by reducing employee turnover and promoting a healthy work-life balance. Research shows that access to paid leave can lead to improved employee morale, higher retention rates, and increased productivity. For employees, FAMLI offers the financial stability to take necessary leave without jeopardizing their income or employment. Preparing for FAMLI Implementation Employers should start preparing for FAMLI by: Reviewing Payroll Processes: Ensure payroll systems can manage the collection and remittance of contributions starting in 2025. Updating Employee Policies: Integrate FAMLI information into employee handbooks and leave policies. Educating Staff: Inform employees about their eligibility and benefits, emphasizing how the program can support them through various life events. As Maryland moves closer to full FAMLI implementation, employers and employees alike should familiarize themselves with the program details. This proactive approach will help ensure that workplaces across Maryland are ready to support their staff’s needs while meeting regulatory requirements. For the latest updates, employers and employees can visit Maryland Department of Labor’s FAMLI. About Luchansky Law Luchansky Law is a premier labor and employment law firm committed to providing exceptional legal representation and client service. Founded in 2004 by Bruce Luchansky, the firm offers a wide range of legal services to businesses and individuals, focusing on workplace issues, employment disputes, and compliance. Luchansky Law is dedicated to upholding the highest standards of diligence, professionalism, and compassion in its practice. Please call (410) 522-1020, email us at info@luchanskylaw.com, or stop by our office at 606 Bosley Avenue, Suite 3B, Towson, Maryland, 21204.  References: MD Department of Labor Maryland Paid Leave