Maryland Paid Family and Medical Leave: What Employers Need To Know Before 2027

Maryland’s Family and Medical Leave Insurance (FAMLI) program will change how employers across the state handle time off, and the work of preparing starts well before any employee files a claim. Benefits do not begin until January 2028, but the decisions you make about  Maryland paid family leave will shape payroll, budgeting, and how the new benefit works alongside your current group disability and leave programs. Every Maryland employer with at least one employee falls under the program, regardless of size or industry, which makes early planning a practical necessity rather than a distant concern.

When Does Maryland Paid Family Leave Begin?

Maryland paid family leave benefits become available in January 2028, but the financial obligations arrive a full year earlier. Payroll contributions for employers in the state plan begin Jan. 1, 2027. 

The timeline has moved before: A 2025 law pushed the contribution start date back from its original 2025 schedule, and further adjustments remain possible as the Maryland Department of Labor finishes building its systems. Waiting until late 2026 to prepare leaves little room to compare options or adjust payroll, so the strategic move is to start mapping out your approach now.

Which Employers Must Comply With Maryland FAMLI?

The program reaches nearly every workplace in the state. Any business with at least one Maryland employee must participate, regardless of industry or payroll size, and no exemptions apply. An employee becomes eligible for benefits after working at least 680 hours in a Maryland-based position during the four most recent reported quarters, and hours from more than one employer count toward that total.

Employer responsibilities under Maryland FAMLI extend well beyond writing a check. You will need to: 

• Register your business when the state opens employer registration in fall 2026
• Withhold and remit contributions
• Distribute required employee notices
• File quarterly wage and hour reports starting in April 2027 

Even employers that select a private plan must file those reports.

What Leave Benefits Will Employees Receive?

Eligible employees can receive up to 12 weeks of paid leave in a 12-month period, earning up to 90% of their wages, capped at $1,000 per week. Qualifying events include:

• Welcoming a new child through birth, adoption, or foster placement
• A serious health condition affecting the employee
• Caring for a family member who has a serious health condition
• Certain military family needs tied to a relative’s deployment

In some situations, leave can extend further. An employee who, for example, experiences a serious health condition and welcomes a new child in the same year may qualify for up to 12 weeks for each event, for a combined total of up to 24 weeks.

State Plan vs. Private Plan: What Are Your Options?

After registration, the state automatically enrolls every employer in the state plan, which offers a straightforward path to compliance. Employers can instead pursue an approved private plan, either a commercial policy or a self-insured arrangement, as long as it provides benefits equal to or better than the state plan.

Private plans can offer advantages worth weighing:

• Greater flexibility in plan design and contribution structure
• Customized administration that fits how your organization already operates
• A smoother employee experience through integration with your existing leave and disability programs

Employers leaning toward a private plan face an early deadline. The state accepts a Declaration of Intent (DOI) from Sept. 1, 2026, through Nov. 15, 2026, for businesses that plan to apply for a private plan in 2027. Missing that window narrows your options for the first program year.

Why Employers Should Start Planning Now

The 2027 contribution start date carries real budget consequences. The state set the total contribution rate at 0.9% of wages for 2027, and employers may withhold up to half of that amount from employee paychecks while covering the rest. Building the cost into next year’s budget now prevents a scramble later.

Early planning also gives you time to review how the program will interact with your current short-term disability, parental leave, and paid time off policies, as thoughtful coordination prevents overlapping or redundant coverage. With regulations and administrative details continuing to take shape, employers that evaluate private-plan options early give themselves the widest range of choices.

Prepare for Maryland FAMLI With Moody

The path to compliance has clear markers: a DOI window in fall 2026, employer registration the same season, contributions beginning Jan. 1, 2027, quarterly reporting starting that April, and benefits arriving in January 2028. Each step rewards employers who plan ahead rather than react at the deadline.

Moody Insurance Worldwide is tracking FAMLI’s development closely and can help you weigh the state plan against private options, coordinate the program with your existing benefits, and build a Maryland paid family leave strategy suited to your workforce. To start that conversation or request a quote, reach out to the Moody team and begin preparing well ahead of the 2027 and 2028 deadlines.

FAQ About Maryland FAMLI

When do FAMLI payroll contributions start?

Contributions begin Jan. 1, 2027, a full year before benefits become available in January 2028.

Does the program apply to small businesses?

Yes. Any employer with at least one Maryland employee must participate, although businesses with fewer than 15 employees are responsible for remitting only half of the contribution rate.

Can an employee take more than 12 weeks of leave in a year?

In most cases, the cap is 12 weeks within a benefit year. An employee who qualifies for two separate types of leave in the same year can receive up to an additional 12 weeks, for a total of up to 24 weeks. For example, an employee might take medical leave for a serious health condition and later take leave to bond with a newborn.

About the Author

Christopher Moody is President of Moody Insurance Worldwide, a leading independent insurance agency located just outside Washington, D.C. He has been serving clients in the insurance industry for more than 30 years. Moody Insurance Worldwide offers a wide range of insurance options, serving clients in all 50 states and overseas. Moody specializes in tailoring insurance programs to fit the unique needs of our clients because when it comes to insurance, one size does not fit all.

About Moody Insurance Worldwide

We are a specialized, independent insurance agency that provides all types of business insurance. In addition to essential Property, Liability, and Benefits insurance, we have expertise in Professional Liability, Cyber Liability, Director & Officer Liability, and International insurance coverage.