Maryland’s paid leave program has become the state government’s version of hitting the snooze button:
not because anyone forgot to set an alarm, but because building a brand-new paid family and medical leave
insurance system is complicated, expensive, and (apparently) allergic to original timelines.
The result: Maryland’s Family and Medical Leave Insurance programoften called FAMLI under the
“Time to Care Act”is still coming, but it’s coming later than many employers and workers planned for.
In this article, we’ll unpack what the delay actually changes, why Maryland delayed it again, and what
employers and employees can do now so 2027–2028 doesn’t arrive like a surprise pop quiz.
Expect plain-English explanations, practical checklists, and a few real-world-style scenarios
(because policy is easier to understand when it has a face and a calendar attached).
What Maryland’s FAMLI program is (and what it’s trying to solve)
FAMLI is designed to provide paid, job-protected leave so Maryland workers can step away from work
for major life events without losing their paycheck (or their job). Think of it as a statewide insurance-style
program: contributions go into a fund, and eligible workers can later receive wage replacement benefits
when they take qualifying leave.
Common qualifying reasons (in plain English)
- Bonding with a new child (birth, adoption, foster placement).
- Caring for a family member with a serious health condition.
- Your own serious health condition that makes you unable to work.
- Military-related needs (certain qualifying exigencies).
When the program is fully live, Maryland has described benefits as providing up to
$1,000 per week for up to 12 weeks for eligible leave (with the possibility of additional leave
in certain situations, depending on how the rules apply to a specific case).
The big-picture goal is familiar: help families stay financially stable during major medical and caregiving events,
and help employers retain workers who might otherwise be forced to quit.
The headline change: Maryland’s updated timeline (and why it matters)
Timelines are the whole story here. If you’re an employer, you’re budgeting for payroll deductions,
configuring systems, and writing policies. If you’re a worker, you’re planning for a baby, surgery,
caregiving, or recoveryevents that do not politely reschedule themselves because legislation moved.
The newest schedule at a glance
- Payroll contributions/deductions: scheduled to begin January 1, 2027.
-
Benefit availability: to be available on a date chosen by the Secretary of Labor,
no later than January 3, 2028 (and not earlier than January 1, 2027). -
Self-employed participation (optional): pushed back until regulations are adopted,
with references in state documents to July 1, 2028 as a key milestone.
How we got here: the “snooze” timeline (2022 → 2025)
Maryland didn’t wake up one morning and decide to delay a finished program. The state has been building this
system in phases, and the schedule has shifted as policymakers adjusted expectations and administration needs.
- 2022: The Time to Care Act established Maryland’s Family and Medical Leave Insurance framework.
-
2024 adjustment: Legislative documents reflected a plan that pushed required contributions to
July 1, 2025 and benefit payments to July 1, 2026. -
2025 adjustment: A further delay moved required contributions to January 1, 2027 and set benefit payments
to a date determined by the Secretary of Labor, with a firm outer boundary of January 3, 2028.
Why Maryland delayed FAMLI again
Delays usually happen for one of two reasons: (1) the program isn’t ready, or (2) the people paying for it
aren’t ready. In Maryland’s case, it’s a mix of bothplus the hard reality that building a statewide leave-insurance
system is part technology project, part financial model, and part public education campaign.
1) Operational readiness: the system has to actually work
A paid leave program isn’t just a policy ideait requires infrastructure: eligibility verification, payroll reporting,
claims processing, fraud prevention, appeals, and secure handling of sensitive information.
If any piece fails, the state gets a backlog, employers get angry, workers get delayed paychecks, and everybody loses faith.
Giving administrators more time is often a way to reduce the odds of a messy launch.
2) Economic and budget uncertainty (including federal ripple effects)
Maryland has a large federal workforce footprint and many businesses tied to federal contracting. When federal conditions shift,
state leaders often reassess the timing of new payroll-related programs. Public discussions around the delay have pointed to
broader economic uncertainty and instability that could impact both employers and workers.
3) The “we’d rather delay than do it wrong” logic
From a policy perspective, a delay can be framed as “more time to build the plane before takeoff.”
From a worker perspective, it can feel like the plane keeps circling the runway while your life event is already boarding.
Both can be true at the same timewhich is why the best next step is planning with the newest dates, not the original ones.
Who’s coveredand how funding is expected to work
In broad terms, FAMLI is designed to cover most Maryland workers, with eligibility tied to work history.
One commonly cited threshold in Maryland’s framework is working at least 680 hours in the relevant lookback period.
(Specific eligibility details can vary based on regulations and the final program rules, so employers should watch
state guidance as it’s released.)
Employer size matters (especially under 15 employees)
FAMLI applies widely to employers with Maryland employees, but small employers are often treated differently in paid leave systems.
In Maryland’s program design, employers with fewer than 15 employees have been described in many employer-facing summaries as
not required to pay the employer portion of the contributionwhile still needing to handle employee withholding/remittance
if employee contributions apply.
Contribution rate: capped, but not “one number” yet
The contribution rate is typically set administratively and can be adjusted to keep the fund solvent.
What matters for planning: Maryland’s framework includes a cap on the total contribution rate,
which has been described in benefits and compliance summaries as not exceeding 1.2% of wages.
The exact rate and mechanics are the details employers should monitor as the 2027 contribution start approaches.
How FAMLI may interact with other leave and benefits
The most common confusion is: “If we already have leave, do we still deal with FAMLI?” Often, yesbecause
state programs typically run alongside (not instead of) other leave rules.
The key is coordination.
FAMLI vs. federal FMLA
The federal Family and Medical Leave Act (FMLA) is the classic “job-protected but unpaid” leave law.
Maryland’s FAMLI is intended to add pay for qualifying time off (again, subject to eligibility rules).
Many workplaces will need to run these in parallel: tracking eligibility, ensuring notices are right,
and avoiding double-counting or policy conflicts.
FAMLI vs. PTO, sick leave, and short-term disability
- PTO/sick leave: employers may choose to let workers supplement income, but policies must be clear and consistent.
- Short-term disability: may overlap for an employee’s own medical condition; coordination rules and offsets matter.
- Parental leave policies: the “stacking” question (company leave + state benefits) should be clarified early.
The safest approach is to avoid guessing: plan now, but be ready to fine-tune once Maryland’s final regulations and
administrative guidance are fully published for the 2027 launch window.
What employers should do now (so 2027 isn’t chaos)
The delay is not a free pass to ignore planning. It’s a gift of timeuse it. Here’s a practical checklist
that works for small businesses, mid-sized companies, and large employers:
Employer readiness checklist
- Audit current leave policies: Identify where FAMLI will intersect with parental leave, medical leave, PTO, and attendance policies.
- Talk to payroll vendors early: Confirm whether your system can handle new withholding categories, reporting, and remittance schedules.
- Map employee populations: Where are your Maryland-based workers? Do you have remote employees whose work location rules need clarification?
- Budget scenarios: Model different contribution rates up to the cap. Build a range, not a single number.
- Prepare communication templates: Employees will ask “When does this start?” and “How do I use it?” Create simple FAQs.
- Evaluate private plan options (if applicable): Some employers may consider equivalent private coverage if allowed and approved.
- Train managers: The biggest compliance issues often begin with a well-meaning supervisor improvising.
What workers should do now (especially if you need leave before 2028)
This is the tough part: the delay means the state program likely won’t be the tool you can use next month
if you’re welcoming a child or facing a serious health condition.
For the near term, workers should plan around:
- Employer-provided parental leave or medical leave benefits.
- Federal FMLA (if eligible) for job protection.
- Maryland earned sick and safe leave (where applicable), PTO, and negotiated leave (if unionized).
- Short-term disability coverage (for an employee’s own medical condition, if offered).
Practical move: ask HR for a written summary of your leave options and any documentation requirements.
That way, when you’re stressed and busy, you’re not also playing detective.
Zooming out: Maryland is joining a bigger national trend
Across the U.S., more states have built paid family and medical leave insurance programs in the last decade.
The basic playbook is similar: payroll contributions + wage replacement benefits + eligibility rules + administration.
Maryland’s repeated timeline shifts highlight a key lesson other states have learned too:
getting the policy passed is only the beginningthe real work is implementation.
If Maryland’s final rollout is smooth, the extra time may be remembered as “the delay that prevented a disaster.”
If it’s bumpy, the delay will be remembered as “the warning sign we all saw coming.”
Either way, 2027–2028 is the planning horizon that matters now.
Quick FAQ: the questions everyone asks first
When do payroll deductions start?
Under the latest schedule, payroll contributions/deductions are planned to begin on January 1, 2027.
When will benefits be available?
Benefits are set to begin on a date determined and announced by the Secretary of Labor, with a latest-possible date of
January 3, 2028.
How much could workers receive?
Public information about the program has described benefits as providing wage replacement up to
$1,000 per week for up to 12 weeks, subject to eligibility and program rules.
How is the program funded?
Funding is expected to come from employer and employee contributions, with the total rate capped (often described as
not exceeding 1.2% of wages). Small employers may have different contribution responsibilities.
Conclusion: Delay doesn’t mean “cancelled”it means “plan smarter”
Maryland’s FAMLI delay is disruptive, but it also provides clarity: the state is aiming for payroll deductions in 2027
and benefits no later than early 2028. For employers, the winning move is to treat the delay as a planning window:
tighten policies, coordinate payroll, and prepare employee communications. For workers, the best move is to understand
what leave tools exist right now, while keeping an eye on when the state benefit will become available.
If there’s one takeaway, it’s this: paid leave programs aren’t just lawsthey’re systems. And systems take time.
Maryland is choosing more time. Your job is to choose more preparation.
Experiences from the field: what the delay looks like in real life
Policies feel abstract until they land on someone’s deskusually next to a half-finished coffee and a calendar full of meetings.
Here are a few realistic, experience-based scenarios that mirror what employers and workers commonly deal with when a statewide
paid leave program shifts its schedule.
1) The small business owner who thought “2025” meant “now”
A neighborhood bakery with 12 employees hears about “Maryland paid family leave” and assumes it works like a new tax:
someone flips a switch, and payroll gets more complicated overnight. The owner asks their bookkeeper to “add the deduction,”
only to learn there isn’t a final contribution rate to apply yetand the start date has moved again.
The delay is a relief on cash flow (small margins are real), but it also creates a new problem: uncertainty.
The owner wants to budget responsibly for 2027, but without a finalized rate, they have to plan in ranges.
The practical outcome is surprisingly simple: they schedule a recurring quarterly check-in with payroll support,
create a one-page internal FAQ for employees, and decide not to promise dates beyond “planned for 2027–2028.”
The lesson: small businesses don’t need a legal departmentthey need a repeatable process.
2) The HR manager juggling three leave programs at once
At a mid-sized company, HR already coordinates FMLA requests, PTO, and short-term disability.
The original expectation was that Maryland’s program would layer on top, adding wage replacement in a standardized way.
The delay changes the sequencing: instead of building one integrated system for 2026, HR builds a “bridge plan” for 2025–2027,
using existing benefits to cover the gap. That often means clarifying how employees can use PTO during unpaid FMLA,
updating manager training so supervisors don’t accidentally discourage leave, and making sure job-protection messaging is accurate.
When employees ask, “So… do I get paid leave from the state next year?” HR can answer clearly:
“Not yet. Here’s what we can offer now, and here’s what we expect later.”
The lesson: clarity is a benefit, even when the benefit itself is delayed.
3) The worker planning family leave who needs certainty, not slogans
A worker expecting a baby in 2026 reads headlines about paid leave and assumes Maryland’s program will help.
Then the dates move again. The emotional whiplash is real: planning a family is already expensive, and “maybe in 2028”
doesn’t help with rent in 2026. In this situation, the most helpful support often comes from a direct conversation
with HR (or a manager who actually knows the policy): how much paid parental leave does the employer offer,
can PTO be used to extend pay coverage, and how does job-protected leave work?
The worker also learns a valuable strategy: document everything earlyrequested leave dates, medical paperwork timelines,
and the sequence of benefits (employer leave first, PTO next, then unpaid protected time if needed).
The lesson: when public programs are delayed, personal planning becomes a “benefits literacy” project.
4) The local government budget officer who hates surprises
Local governments operate on budget cycles and public transparency. When a statewide program moves, the question becomes:
“What do we reserve, and when?” A delay can reduce near-term costs, but it also shifts workload: payroll systems still need updates,
employee education still has to happen, and leadership still expects clean numbers.
Budget teams often respond by building multi-year forecasts with conservative assumptions and a clear note to decision-makers:
“This is a placeholder range until the state finalizes rates and reporting specifics.”
The lesson: the organizations that handle delays best treat them as scheduling changesnot strategy changes.
Put together, these experiences point to one big truth: Maryland’s delay changes timing, not importance.
The employers and workers who adapt best are the ones who replace guesswork with a simple habit:
track updates, write down what you know, and plan for a range until the final numbers arrive.
