The Maryland Family and Medical Leave Insurance (FAMLI) program will be delayed by one year, with new start dates for employer withholding and employee benefits [S.B. 828, L. 2023; H.B. 988, L. 2023].
Employer Withholding
Employers must begin withholding contributions for the program on October 1, 2024 (previously October 1, 2023). The amount withheld for contributions will be capped at 1.2% of an employee’s income, up to the social security wage base. Employers with 15 or more employees must pay 50% of contributions but may agree to pay more if notice is given to employees. Employers will be required to provide employees notice of changes to withholding rates set by the Maryland Secretary of Labor.
Employee Benefits
Employees may access benefits beginning January 1, 2026 (previously January 1, 2025). Benefits will be capped at 100% of an employee’s average weekly wage. The employee’s average will be compared to the state average to determine exact benefit amounts.
The FAMLI program was also expanded to cover bonding time with new children and to include domestic partners as covered family members. Employers cannot require that other paid leave be used before or at the same time as FAMLI leave, unless an employee agrees.
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Lorelei Abernathy, Esq., is Editor of PayState Update and Editor of Payroll Information Resources for PayrollOrg.
