Update Applicable to:	Effective Date
All Employers in Maryland	Act (HB 102): June 1, 2025   Contributions: January 1, 2027   Benefits: Between January 1, 2027, and January 3, 2028   Self-Employed: July 1, 2028

What happened?

On April 8, 2025, Governor Wes Moore signed House Bill 102 (HB 102) into law, delaying the implementation of the Maryland FAMLI program.

Overview:

The Maryland Department of Labor proposed the delay on February 14, 2025, to give employers and workers more time to prepare. Once implemented, FAMLI will provide paid leave for Maryland workers to care for family members or address their serious health conditions.

Key Points:

• Payroll Deductions: Begin January 1, 2027.
• Benefits Availability: Start January 3, 2028.
• Program Guarantees:
  • Time away from work
  • Job protection
  • Up to $1,000 a week for up to 12 weeks

Important Dates:

• Contribution Start Date: Delayed by 18 months to January 1, 2027.
• Benefit Claims Start Date: Delayed to a date between January 1, 2027, and January 3, 2028, as determined by the Secretary of the Department of Labor.

Next Steps: Maryland employers should note these new dates and stay tuned for updated and finalized FAMLI regulations.

Additional Information:

Summary of HB 102

Purpose: HB 102 aims to revise the Family and Medical Leave Insurance (FAMLI) Program in Maryland, focusing on definitions, self-employed participation, contribution rates, and reporting requirements.

Key Provisions:

1. Anchor Date Definition: Establishes “anchor date” as the earlier date when an application for benefits is complete, or the date leave begins for a covered individual.

2. Self-Employed Participation: Requires the Maryland Department of Labor to adopt regulations by July 1, 2028, for an optional self-employed enrollment program, including contribution amounts, benefit amounts, and enrollment procedures.

3. Contribution Rates: The start date for required contributions is delayed to January 1, 2027, and the total rate of contribution for employees and employers is set at no more than 1.2% of an employee’s wages.

4. Reporting Requirements: The annual reporting date is changed to October 1 each year, and cost analyses are required to determine appropriate contribution rates.

5. Benefit Payments: This section specifies how weekly benefit amounts are calculated based on the covered employee’s average weekly wage and the State average weekly wage. It also sets the maximum weekly benefit amount and outlines the process for annual adjustments based on the Consumer Price Index.

6. Employer Contributions: This section details the employer’s responsibility to contribute 50% of the total contribution rate for each employee and allows employers to elect to pay all or a portion of the employee’s required contributions.

7. Reimbursements: Provides reimbursements to community providers and other specified providers for employer contributions related to employees who manage or provide services under certain health-related articles.

8. Implementation Dates: Delays the start date for benefit payments to a date between January 1, 2027, and January 3, 2028, as determined by the Secretary.

Source References

• MDOL Press Release
• Maryland Family and Medical Leave Program Amended and Coming Sooner (VensureHR)
• Maryland Department of Labor Issues FAMLI Proposed Regulations (VensureHR)
• MD HB0102 – Family and Medical Leave Insurance Program – Revisions

Resources

• MD Family and Medical Leave Insurance

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