Maryland to implement FAMLI payroll deductions in 2027

Maryland is preparing to launch its Family and Medical Leave Insurance (FAMLI) program, which will introduce new paycheck deductions for workers. Starting January 1, 2027, employers will begin collecting contributions to fund the program. The initial contribution rate is set at 0.9% of wages up to the Social Security wage cap. For employers with 15 or more employees, the cost can be split evenly with workers, potentially resulting in a 0.45% deduction for employees.

While contributions begin in 2027, paid leave benefits will not be available until January 1, 2028. The Maryland Department of Labor stated this gap allows the trust fund to build before claims are processed. Once active, the program will offer eligible workers up to 12 weeks of paid, job-protected leave per year, with benefits reaching up to $1,000 per week. Qualifying reasons include the birth of a child, serious personal or family health conditions, and certain military deployment needs.

The program has faced criticism regarding economic affordability. State Senator Justin Ready noted the added cost could impact residents already facing financial struggles, while employment attorney Ben Barlow questioned the delay between the start of deductions and the availability of benefits.