Maryland Delays Start of Paid Family and Medical Leave Program

Hold your horses—Maryland just added a few more furlongs to its race toward a paid family leave.

On May 6, 2025, Governor Wes Moore signed House Bill 102 (“the Amendment”), which again pushes back the start date for Maryland’s Family and Medical Leave Insurance Program (FAMLI). This latest delay came as no surprise, given Maryland Department of Labor’s (MDOL) proposal earlier this year to extend the FAMLI implementation dates, because of the “high degree of instability and uncertainty for Maryland employers and workers” created by recent federal actions.

Dates to Begin Contributions and Use Leave Benefits

As we previously discussed, FAMLI will be funded through contributions from employees and employers with 15 or more employees. Although the Amendment does not alter FAMLI’s funding model, the required payroll deductions, previously scheduled to start on July 1, 2025, will now begin on January 1, 2027. The Maryland Secretary of Labor also now has until March 1, 2026, to set the contribution rates for 2027, and then until November 1st to designate the contribution rate for each subsequent calendar.

Notably, the Amendment does not establish an exact date on which employees can use paid family leave benefits. Instead, the Amendment only directs the Secretary of Labor to announce when the benefits will be available, provided the announcement is not later than January 3, 2028. Previously, benefits were supposed to begin January 1, 2026.

Finally, the minimum and maximum weekly benefit amounts remain unchanged for 2027 and 2028 at $50 and $1,000 respectively. Starting in 2029, however, FAMLI’s maximum weekly benefit amount will be tied to the Consumer Price Index to account for inflation.

Addition of the “Anchor Date”

The Amendment also added the term “Anchor Date,” which is defined as the earlier of the date on which a covered individual completes their FAMLI benefit application or the date the leave began. The state will use the Anchor Date as the new reference point for calculating (i) when an employee is eligible for paid family leave benefits; (ii) the covered employee’s average weekly wage, which is used to calculate the amount in benefits they receive; and (iii) their eligibility for increases in weekly benefits under the Program.

To qualify as a “covered employee” under the amended law, an individual must have worked at least 680 hours over the four completed calendar quarters immediately prior to the Anchor Date. Previously, employees needed only to work at least 680 hours in the four most recently completed calendar quarters before the date the leave began. Additionally, a covered employee’s average weekly wage will be calculated based on the total wages the employee received in the highest of the four completed calendar quarters that immediately precede the Anchor Date.

Finally, any increases to FAMLI’s weekly benefit amount will only apply to paid family leave applications with an Anchor Date that occurs on or after the date the increase becomes effective, except in certain cases where paid family leave benefits are paid intermittently.

Looking Ahead

The Maryland Department of Labor is in the process of developing regulations to help implement FAMLI and has already updated its website to reflect the new dates discussed here. We will continue to keep you updated as circumstances evolve.