By: HUB's Absence Management Team

On April 25, 2024, Maryland Governor Wes Moore signed legislation approving changes to the Maryland Family and Medical Leave Insurance (FAMLI) program, including a delay in the implementation timeline.

Background

The Maryland FAMLI program was established in April of 2022 when the Maryland General Assembly passed the Maryland Time to Care Act into law. The program, which applies to all employers with at least one employee in the state of Maryland, will provide eligible employees with up to 12 weeks of paid leave for 1) employee’s own serious health condition; 2) to care for a family member with a serious health condition; 3) to care for a child during the first year after the child’s birth or after the placement of the child through foster care, kinship care, or adoption; 4) for qualifying exigencies arising out of the deployment of an employee’s family member; or 5) to care for an ill or injured service member who is an employee’s next of kin.

Summary of Changes

Timeline

With the passing of this legislation, the collection of FAMLI contributions will now begin on July 1, 2025, and benefits will be available beginning July 1, 2026.

Administrative Changes

Along with the delay of the program commencement, additional changes have been made to ease the burden on employers:

  • The definition of “wages” will now match the definition in the Maryland Unemployment Insurance Act.
  • The Maryland Department of Labor (DLLR) will now be able to use periodically submitted reports to verify eligibility and calculate benefits.

The changes will also allow the DLLR to set reasonable fees for employers seeking private coverage options and assess penalties on non-compliant employers. Additionally, amended language clarifies that employers obtaining coverage through private plans cannot deduct more than 50% of the maximum contribution amount from workers.

Next Steps

Draft regulations for the FAMLI program will be available in the coming weeks. Though the program is delayed, employers should begin planning for this new leave benefit by reviewing their current leave policies and pay practices, considering their options between a state and private plan, and having preliminary discussions with stakeholders regarding the potential impact of the new program.

NOTICE OF DISCLAIMER

Neither Hub International Limited nor any of its affiliated companies is a law or accounting firm, and therefore they cannot provide legal or tax advice. The information herein is provided for general information only and is not intended to constitute legal or tax advice as to an organization’s specific circumstances. You should consult an attorney, accountant, or other legal or tax professional regarding the application of the general information provided here to your organization’s specific situation in light of your organization’s particular needs.