At RKW Law Group, we have kept a close eye on Maryland’s forthcoming Family and Medical Leave Insurance (FAMLI) program. Under this program, workers will receive job protection and be able to take time away from work to care for themselves or a family member and still be paid up to $1,000 a week for up to 12 weeks. Like unemployment insurance, FAMLI is a state-run insurance program, with both employers and workers making contributions to a fund administered by the State (although, unlike unemployment, FAMLI law also provides for self-insured and commercially insured options).

Payroll contributions were set to begin on July 1, 2025 – a date just a few months away. We already have discussed with many employers the pros and cons of the different insurance options and policy choices they will be facing as this deadline draws near.

However, that date now looks like it will be pushed back once again. Citing the near-daily executive orders and policy decisions stemming from the White House affecting Maryland workers, Maryland Labor Secretary Portia Wu has proposed delaying the start of the Program until January 1, 2027, a full 18 months.

This change requires legislative action by the General Assembly – although it is not at all anticipated to be held up in that process. Indeed, already in anticipation of the change being implemented, the Maryland Department of Labor has announced it is pausing all regulatory timelines, including the process for applying to use a private plan.

Employers who recently have updated policies or Handbooks reflecting the upcoming changes in the law should have those changes reviewed to see if they are still applicable. Employment contracts or Collective Bargaining Agreements contemplating a July 1, 2025 date for contributions also may need to be amended. Employers who have taken affirmative steps to begin implementation of the FAMLI program – by selection of commercial insurance plans, by notifying employees of the forthcoming changes, or otherwise – also should begin taking steps to put such plans on ice.

January 1, 2027 is a long time from now. This may not be the last significant change to FAMLI. Contact your RKW Employment Attorney for any assistance along the way.

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