The Maryland Department of Labor (“MDOL”) recently proposed a delay in the implementation of the Family and Medical Leave Insurance (“FAMLI”) program.
FAMLI is currently scheduled to roll out this year with payroll deductions beginning on July 1, 2025 and benefits becoming available on July 1, 2026. However, according to the February 14, 2025 press release issued by the MDOL, the new recommended plan would begin payroll deductions on January 1, 2027, and benefits would become available on January 1, 2028. The MDOL explained that the proposal to delay the implementation is in response to the “[r]ecent sweeping, unprecedented changes at the federal level” that “have given rise to a high degree of instability and uncertainty for Maryland employers and workers.”
As a result of this proposed delay, the MDOL has paused announcing any regulatory timelines, including the process for employers to apply to use a private plan, which was originally scheduled to begin in May 2025.
Additionally, Maryland State Senator Stephen Hershey introduced Senate Bill 355, which proposed further delaying the implementation of the FAMLI program, proposing that payroll deductions begin on July 1, 2027 and benefit payments begin on July 1, 2028.
These proposed changes must be approved by the General Assembly, which is currently in session until April 7, 2025.
