MD Employment Law Update: FAMLI Program Delayed Again; Employers Covered by Federal FMLA Not Required to Provide Leave Under Maryland Parental Leave Act

The Maryland General Assembly recently concluded its 2025 legislative session with two amendments to the state's existing leave laws. Gov. Wes Moore has signed both changes into law.

Family Medical Leave Insurance Program Revisions (HB0102/CH0363; Effective July 1, 2025).

Implementation of the Family Medical Leave Insurance Program (FAMLI) has been delayed once again. Paid leave under the program is funded through payroll contributions, and those contributions were initially scheduled to begin on October 1, 2024. However, in response to challenges the Maryland Department of Labor experienced regarding implementation, the legislature scrapped that date last year and extended it to July 1, 2025. Benefit payments were also delayed from January 1, 2025, to July 1, 2026.

Now, those dates have been further extended by amendments that become effective on July 1, 2025. Specifically:

  • Contributions that were supposed to start July 1, 2025, will now begin January 1, 2027. 
  • Benefits that were supposed to be available starting January 2026 will now be available no later than January 3, 2028. 
  • The Department of Labor (DOL) will determine the availability date of benefits in the future. DOL will determine the payroll contribution rate for 2027 no later than May 1, 2026. 

Under the FAMLI program, eligible employees are entitled to up to 12 weeks of leave for their own serious health condition, to care for a family member with a serious health condition, bonding leave, or military caregiver/exigency leave. If the employee needs 12 weeks for their own serious health condition and gives birth in the same year, they can take another 12 weeks of leave.

Labor and Employment - Unpaid Parental Leave - Definition of Employer (SB0785/CH0296; effective October 1, 2025).

The other significant amendment affecting employee leave involves a change in the definition of "employer" such that employers who are subject to the federal Family Medical Leave Act (FMLA) due to their total employee count, and have 15-49 employees in Maryland, will not be required to provide unpaid leave under the Maryland Parental Leave Act (PLA). 

Effective October 1, 2025, an "employer" under the PLA is one that:

  • Employs at least 15 but not more than 49 individuals in Maryland for each working day during each of 20 or more calendar workweeks in the current or preceding calendar year; AND
  • Is not covered under the FMLA for the current calendar year.

If you have questions about these amendments or leave obligations generally, please contact Melissa Jones at Tydings.