Maryland to begin payroll deductions for FAMLI program in 2027

Maryland is set to begin payroll deductions in January 2027 to fund the state’s Family and Medical Leave Insurance (FAMLI) program. Under the Time to Care Act, workers will contribute up to 0.45% of their wages, while larger employers will generally contribute an additional 0.45%, resulting in a combined rate of 0.9%.

Due to repeated delays since the program's creation in 2022, benefits will not be available to eligible workers until January 1, 2028. The Maryland Department of Labor maintains that a yearlong collection period is required to build a necessary insurance reserve.

The legislation, which was passed by lawmakers over a veto by former Republican Governor Larry Hogan, has faced criticism from political opponents. Former Delegate Dan Cox has questioned the necessity of requiring contributions for a full year before benefits are accessible, while Hogan previously described the measure as “irresponsibly crafted, rushed piece of legislation” that would increase costs for both employees and employers.