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Paid Family and Medical Leave Insurance (FAMLI) is Coming to Maryland

Posted November 5, 2024 at 5:45 AM

Business & Tax, Employment Law, News & Events

In 2022, the Maryland General Assembly passed legislation to provide Maryland workers with Family and Medical Leave Insurance (FAMLI).  The purpose of FAMLI is to provide workers with paid leave when they need time away from work to care for themselves or a family member.  The Maryland Department of Labor has been preparing for the launch of the program for the past few years. Here are three quick facts that individuals and business owners should know about FAMLI:

  • Funding Contributions:  FAMLI will be funded by payroll contributions beginning with the period starting on July 1, 2025.  Employers with 15 or more employees will contribute 0.90% of covered wages up to the Social Security cap and employers can withhold up to half of this amount (0.45%) from the employee’s paycheck.  Employers with fewer than 15 employees will contribute 0.45% of the covered wages up to the Social Security cap and employers may withhold up to this full amount from the employee’s paycheck. 
  • Paid Leave Coverage:  Starting on July 1, 2026, most Maryland workers (including part-time workers), will be eligible for up to 12 weeks of paid leave (up to 90% of their wages with a maximum of $1,000 per week) for the following events:
    • To welcome a child into their home, including through adoption and foster care
    • To care for themselves, if they have a serious health condition
    • To care for a family member’s serious health condition
    • To make arrangements for a family member’s military deployment
  • Job Protection:  At the end of an employee’s FAMLI leave, absent a few limited exceptions, the employer must allow the employee to return to the same or equivalent position.

Now is the time for business owners to start preparing for FAMLI.  Businesses should include the additional FAMLI contribution amount in future budget planning.  In addition, business owners need to consider if they will alter current leave benefits or polices once FAMLI paid leave begins.

Questions? Scott Mirsky is a principal in Miller, Miller & Canby’s Employment Law and Employment Litigation practice, with more than 20 years of experience representing individuals and businesses in diverse civil matters throughout the Washington, DC region. He has experience handling non-compete and trade secret disagreements, employment claims, issues concerning independent contractors, wage and overtime disputes under the FLSA and state law, and breach of contract claims. Learn more about his practice here or contact him directly at SAMirsky@mmcanby.com

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