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Maryland Paid Family Leave: Family and Medical Leave Insurance (FAMLI)

Maryland FAMLI: Preparing for Paid Family Leave in 2026

Maryland joined the growing list of states with Paid Family Leave laws in 2022, when Maryland state legislators passed the Time to Care Act. Maryland FAMLI provides up to 24 weeks of paid family and medical leave each year for employees that meet certain conditions.

The state Department of Labor established the Division of Family and Medical Leave Insurance to establish and administer the plan. In May 2023, the Maryland General Assembly modified the program, including setting a new start date of January 1, 2026 for benefits.

Maryland employers with at least one employee in the state must begin making premium contributions by October 2023. Employers with fewer than 15 employees are not required to contribute. Employees must still pay their share and are entitled to receive benefits under Maryland FAMLI.

Why Choose The DBL Center for Maryland Paid Family Leave

As with many other states that mandate paid family and medical leave programs, Maryland allows employers to opt out if they show proof of a private plan that provides the same – or better – benefits, rights, and protections to employees.

Maryland’s FAMLI program is unique in that employees can take up to 12 weeks of parental leave plus 12 weeks for another reason listed during the same benefit year.

The DBL Center’s relationships with top carriers and extensive knowledge of other paid family and medical leave programs puts us in a position to find the right plan for Maryland business owner that meets state requirements.

By privatizing FAMLI under the rules of the TCA, Maryland business owners can save money on premiums. Employees filing claims may receive faster payouts and better service than they would with the state.

By enrolling with a private plan, business owners can receive a refund of payroll taxes paid into the program beginning October 2023 and use that money to cover the premium cost of a private plan – often with savings left over! Employers can use that savings to invest in ancillary group benefits that today’s workers want.

Key Features of Maryland's Paid Leave Program

Maryland’s paid leave program mimics others in the country, but with a few differences that expand coverage, making it one of the broadest, most generous plans to date.
Benefit amounts equal up to 90% of an employee’s average weekly wages, up to 65% of the statewide average weekly wage, plus 50% of anything over that amount. In 2022, the statewide average weekly wage is $1,338, but this number tends to change annually.
In January 2026, when employees can begin making claims, the maximum weekly benefit will be capped at $1,000. The minimum is $50.

Administration

State-run plans will be administered by the new Division of Maryland FAMLI, a subset of the Maryland Department of Labor. Employers can opt for a private plan as long as it is approved by the state.

Pre-Funding

Employers will begin pre-funding the program through payroll taxes, at a rate of .90% of the employee’s wages, up to the Social Security maximum taxable wage base, which changes annually. Pre-funding will begin October 1, 2024.
The program will be cost-shared, with employers and employees each paying 50% of the total premium. The employer can choose to fund the entire premium. Businesses with fewer than 14 employees do not need to pay their portion of the premiums, although employees will still pay their half through payroll deductions.

Leave Duration

Employees on paid leave can take up to 12 weeks of leave to care for a new child (through birth, adoption or foster care) within the first year of the event. They can also take up to 12 weeks of medical leave. Leave also extends to taking care of an ill or injured family member, or to stay home while a family member is deployed with the U.S. military.
Employees can take up to 12 weeks of paid leave for child care along with 12 weeks of paid leave for another reason within the same benefit year. So, if a new parent requires medical leave prior to, or immediately after, childcare, they can take up to 12 weeks medical leave for themselves and another 12 weeks paid family leave.

Eligibility

Employees qualify for Maryland FAMLI leave after they have worked at least 680 hours in the past 12 months immediately prior to leave. Self-employed individuals and sole proprietors may choose to opt into the program.

Privatization Options

By enrolling your clients in a private plan through The DBL Center’s network of top-rated carriers, insurance brokers can save Maryland business owners money, build trust, and reap financial rewards.
Most private insurance plans offer tremendous cost savings of 15% or more compared to state funds. We have seen this in other states, including Colorado and Massachusetts. Business owners often choose to roll that savings into expanding voluntary worksite and ancillary benefits, leading to increased commissions for our brokers.

Conclusion

Maryland business owners are already starting to talk about PFML benefits.

Reach out to The DBL Center now to find out how you can become a leading broker in the state by providing this important required benefit.

Frequently Asked Questions

Maryland PFML is Maryland’s paid family and medical leave program under the Time to Care Act. Named Family and Medical Leave Insurance (FAMLI) the program provides up to 24 weeks of paid leave for a variety of caregiving or medical reasons.

Maryland employees can claim Maryland PFML (FAMILY) to care for a new child during the first year the child joined the family through birth, adoption, kinship care or foster placement. FAMLI also covers time off due to an individual’s own health condition, time off to care for a family member with a serious health condition, or to care for a service member who is the worker’s next of kin. FAMLI also covers time off for a qualifying military exigency if a family member has been deployed as a member of the U.S. military.

To be eligible for coverage, an employee must have worked at least 680 hours in 12 months prior to leave.

Employers must begin funding FAMLI through payroll taxes beginning October 1, 2024. If an employer opts for a private plan, they may be exempt from remitting contributions to the State during the pre-funding period. More information to follow.

In general, private paid family and medical leave plans offer better service, faster, more flexible claims payouts, and cost savings.

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