There’s been a major update regarding Maryland’s Paid Family and Medical Leave Insurance (FAMLI) program. On April 7, 2025, the General Assembly voted to postpone major deadlines and accepted a new timeline proposed by the Maryland Department of Labor. The Governor is expected to officially extend the delay of the FAMLI program.
Originally, payroll contributions for the program were scheduled to begin in July 2025, with benefits to begin in 2026. Now, under the approved extended implementation plan, a new timeline will be in effect:
- Payroll deductions will begin January 1, 2027
- Benefits will be available no sooner than January 1, 2027, and no later than January 3, 2028
Why Is the MD FAMLI Program Delayed?
In February, the Maryland Department of Labor proposed an extended timeline to address economic uncertainty and federal changes affecting the state’s job market. Many workers in Maryland are contractors or employees of the federal government. Because of potential job disruptions and budget concerns, the Department of Labor encouraged the state government to take a more cautious approach to implementing the Maryland FAMLI program.
When the extended timeline was first proposed, Labor Secretary Portia Wu highlighted the state’s continued commitment to workers and businesses in both the public and private sectors. Her statement emphasized how the FAMLI program will enhance Maryland’s economy while providing job-protected paid leave. The extended implementation timeline adjusts major program dates, and it provides officials with more time to develop a stronger digital infrastructure, secure sustainable financial systems, and improve awareness among businesses and workers.
Will the MD FAMLI Extended Implementation Timeline Affect Private Plan Applications?
Originally, Maryland planned to accept Private Plan applications from May 1, 2025, to August 29, 2025. However, the extended implementation timeline paused these regulatory dates. Employers will need to watch for updated dates for Private Plan applications and new deadlines for reporting wages and hours to the state. Sign up here to stay in the know!
For businesses that have previously received quotes for FAMLI-related benefits and Private Plans, these quotes may change depending on future regulatory decisions. Those currently quoting in Maryland should be prepared for possible revisions once new regulations are finalized.
ShelterPoint will continue to quote MD PFML business despite the implementation delay. Brokers can reach out to our Maryland Sales Team for a quote for their group.
Learn More About the MD FAMLI Extended Implementation Timeline
While the extended timeline means a delay in benefits, it will provide more time for both the state and employers to prepare for the program’s implementation. For now, Maryland employees and business owners should explore alternative solutions and watch for any future developments.
To stay informed about Maryland’s FAMLI plan and Private Plan options, sign up for updates here.
How Can Employers Prepare for MD FAMLI?
With the extension of FAMLI’s implementation timeline, employers will have more time to understand the program and its compliance requirements.
- Plan for payroll contributions: Beginning to prepare now can help employers ensure that they’re ready to make the proper adjustments and stay compliant with the upcoming regulations.
- Review state and Private Plan options: The extended implementation timeline provides more time for employers to understand both state and private insurance options. While plan application timelines are currently on hold, employers can evaluate their options and prepare for when enrollments resume. It’s also a good idea to evaluate existing leave benefits and consider changes that might best support employees during the postponement.
- Stay informed: Employers can watch for updates from the Maryland Department of Labor to ensure they meet all future obligations.
How Can I Learn More About MD FAMLI?
As legislation for the implementation of Maryland’s FAMLI has moved through the state house and senate chambers, legislators have proposed other changes, such as modifying the benefit limit to adjust for inflation during the delay. The current legislation doesn’t address modifying the benefit limit. However, officials are still considering the fiscal effects of the delay and are expected to revisit the issue later this year.
To stay up-to-date about the implementation of Maryland’s FAMLI Program and learn how these changes may affect businesses in the state, check out ShelterPoint’s Maryland FAMLI page. If you’re a broker looking for additional insights, you can learn more by watching this recording of our recent MD FAMLI webinar.
Stay ahead of future updates by signing up for updates from ShelterPoint. We’ll keep you informed on the latest developments, key deadlines, and everything you need to navigate Maryland FAMLI with confidence.
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This material is for informational purposes only and is not intended to provide legal counsel. Please consult with an appropriate professional for legal and compliance advice. Any program information is based on our knowledge and understanding of Maryland’s applicable laws and regulations as of the publication date and may change as regulations evolve or Maryland Department of Labor issues updated guidance. Further, this material is for illustrative purposes only, providing a general overview of the services described. It is not a contract nor intended as an offer of coverage.
Policies are subject to Underwriting approval. Policies are reviewed annually and may be cancelled for nonpayment. All coverage extends to limits reflected in the policy. Please refer to the policy for coverage details pursuant to its governing law, including a complete listing of covered services, provisions, conditions, exclusions, limitations, and terms under which the policy may be continued or cancelled. In the event of conflicting information with the policy and its governing Law, the policy and governing Law will take precedence over what is shown in this material. Claim payment is not guaranteed; benefit amount depends on wages.
Maryland’s Time to Care Act (TTCA) (as reflected in MD Code Lab. & Empl. §§ 8.3-101 et seq.) and any Rules and Regulations established by the Maryland Department of Labor FAMLI Division govern this Private Plan and its interpretation and administration. Available in MD only.
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