SOUTHERN MARYLAND — If you’re a business owner in Maryland, this is something worth keeping on your radar — because the timeline is approaching faster than it may seem.
Maryland is rolling out a new program called the Maryland Department of Labor Family and Medical Leave Insurance program, commonly known as FAMLI, which will provide paid family and medical leave benefits to employees beginning in 2028.
While that may sound far away, several important deadlines and planning decisions will happen well before then.
What Is FAMLI?
FAMLI is Maryland’s version of a paid family and medical leave program and expands on what many employers already know as the U.S. Department of Labor Family and Medical Leave Act, or FMLA.
FMLA allows eligible employees to take unpaid, job-protected leave for certain medical or family situations. FAMLI builds on that by adding paid leave benefits for qualifying events, including:
- Welcoming a new child through birth, adoption or foster placement
- Caring for a family member with a serious health condition
- Taking leave for an employee’s own serious health condition
- Certain military-related situations
When Does It Take Effect?
Here’s the current timeline employers should know:
- Late 2026: Employers must decide how they want to participate
- January 2027: Payroll contributions begin
- January 2028: Employees can begin using benefits
What Are Employers Required To Do?
Under the current structure:
- A total of 0.9% of wages will fund the program
- Contributions may be split between employers and employees
- Employers are responsible for at least 0.45%
- Employees may contribute up to 0.45%, depending on how the plan is structured
Employers also have the option to cover the full contribution amount if that better fits their business model.
Is There An Alternative To The State Plan?
Yes. Employers may apply for a private plan exemption if they offer a program that meets or exceeds the state’s requirements.
Private plans must receive state approval and follow similar guidelines, but they may offer additional flexibility depending on how they are designed.
Why This Matters Now
For many business owners, the challenge is not necessarily the law itself — it is having enough time to properly plan.
Although employee benefits will not begin until 2028, participation decisions begin in 2026 and payroll contributions start in 2027. That makes this an important topic to understand now rather than later.
Every business operates differently, and there is no one-size-fits-all approach. What matters most is understanding the options available and preparing early enough to make informed decisions for your company and employees.
Final Thoughts
Programs like FAMLI are intended to support employees during major life events, but they also introduce new planning considerations for employers.
The more businesses understand the program now, the more prepared they can be when implementation deadlines arrive.
Business owners interested in learning more about Maryland’s FAMLI program or exploring available options should consider speaking with a qualified professional or trusted advisor for guidance tailored to their business needs.
About The Author
Maryanna Lanham is a local insurance professional at Waring-Ahearn who has worked in life, health and long-term care planning since 2014. Her work focuses on helping individuals, families and businesses better understand coverage options and long-term planning needs through education-focused guidance and thoughtful conversations. Her perspective was shaped not only through her professional experience, but also through personal caregiving responsibilities after stepping away from her career to care for her father and support her sister through cancer treatment.
Through The BayNet’s Expert Series, Lanham shares practical insights, common misconceptions and real-world experiences to help Southern Maryland families better navigate long-term care, insurance and future planning conversations.
Visit waring-ahearn.com to learn more.
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