Maryland has opened employer registration for its Family and Medical Leave Insurance program, or FAMLI. Employers with at least one employee working in Maryland must register through the state’s paid leave system.
Registration is the next implementation step before payroll deductions begin in 2027. Maryland officials are encouraging employers to register early so payroll and benefits systems are prepared before contributions start.
When benefits become available in January 2028, eligible workers will receive up to 12 weeks of job-protected paid leave. Weekly benefits will reach as much as $1,000, depending on the employee’s earnings.
Employees will use FAMLI for qualifying events such as welcoming a new child or dealing with a serious health condition. Coverage also extends to caring for a family member and certain urgent needs connected with military deployment.
Gov. Wes Moore said the program is intended to give workers paid time away from their jobs during major family or medical events. He also presented FAMLI as part of Maryland’s approach to employer benefits as neighboring jurisdictions operate or introduce similar paid leave programs.
Maryland Labor Secretary Portia Wu said employers will have different administrative needs depending on their size and payroll systems. The Department of Labor is providing registration guidance for small businesses as well as larger organizations managing benefits through dedicated HR teams.
FAMLI operates as an insurance program funded through contributions placed into a dedicated state fund. During qualifying leave, the system will replace part of an employee’s wages rather than requiring employers to continue paying the worker’s full salary.
Employers have two main options under the program. They may participate in Maryland’s State Plan or pursue an approved private plan meeting FAMLI requirements.
The State Plan will receive quarterly contributions from employers and employees. Employers are permitted to deduct up to half of the applicable contribution from employee paychecks.
Companies with fewer than 15 employees qualify for the small-employer discount and won’t owe the employer portion of the State Plan contribution. Employees at those businesses will still make their required contributions, and the state estimates more than 80% of Maryland employers fall within the small-employer category.
Payroll withholding begins with the first pay period in January 2027. Employers participating in the State Plan will make their first quarterly contribution payment by April 30, 2027.
Quarterly wage and hour reporting will also begin in April 2027. Employers using an approved private plan will follow separate requirements rather than remitting State Plan contributions.
Initial registration must be completed by an authorized officer acting for the employer. Maryland’s system uses Login.gov for account access and identity verification, while third-party administrators must register separately before managing FAMLI tasks for clients.
Paid benefits are scheduled to start January 1, 2028. Employers will then need to protect qualifying employees’ jobs and continue applicable health benefits during FAMLI leave, with workers returning to the same or an equivalent position.
