These answers are based on the Division’s current thinking. The Division's regulations have not been
finalized. The information contained herein is subject to change without notification. Please visit
paidleave.maryland.gov for updated information.
Frequently Asked Questions from Employers about
Family and Medical Leave Insurance (FAMLI)
The Maryland Department of Labor is in the process of establishing our state’s Family and
Medical Leave Insurance (FAMLI) system. The work of the FAMLI team is underway. Over the
past 8 months, we received a number of questions, particularly from the employer community.
Listed below are the most frequently asked questions from employers. It is important to note
that the General Assembly is considering legislation related to FAMLI and that the Department
has not finalized regulations. Therefore, these answers are subject to change. Updated
information will be posted at paidleave.maryland.gov.
If your question is not answered below, please click here to submit it!
General Questions from Employers
1. What is family and medical leave insurance (FAMLI)?
Family and medical leave insurance (FAMLI) will ensure eligible Maryland workers can
take up to 12 weeks away from work to care for themselves or a family member and still
receive income of up to $1000 a week. This program is often referred to as “paid family
and medical leave” or simply “paid leave.”
2. Who will be able to receive paid family and medical leave benefits?
There are two groups of workers who will be able to receive FAMLI benefits: employees
based in Maryland and self-employed Maryland residents who opt into the program.
3. How will an employee qualify for benefits?
Any employee with a qualifying event who works at least 680 hours in a position based
in Maryland in the 12 months before they need to take leave will be eligible for benefits.
4. What qualifying events could a worker use leave for?
• 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
These answers are based on the Division’s current thinking. The Division's regulations have not been
finalized. The information contained herein is subject to change without notification. Please visit
paidleave.maryland.gov for updated information.
5. Will I be required to provide paid leave?
Yes, all employers will be required to provide paid family and medical leave
insurance. You may choose whether to provide insurance through the State Plan, a
commercial plan, or a self-insured option.
6. How is FAMLI funded?
FAMLI is funded through contributions that employers will remit to the State on a
quarterly basis. The contribution amount is based on payroll. You may withhold up to
50% of the total contribution rate from your employees’ paychecks.
7. When will contributions begin?
The General Assembly is currently considering legislation proposing that contributions
begin in July of 2025. This means payroll deductions would begin in July and you would
remit your first payment to the State after the quarter ends in October of 2025.
8. What reporting requirements will there be?
You will be responsible for filing quarterly wage and hour reports with the
Division. These reports will be the basis for calculating the amount due each quarter.
Even if you participate in a private plan, you will be required to file these reports.
9. When will workers begin receiving benefits?
The General Assembly is currently considering legislation proposing that benefits begin
in July 2026.
10. Why will contributions begin before benefits?
The contributions employers will remit to the State will create a trust fund. The fund will
grow over time and be ready to pay out benefits to Maryland workers starting in 2026.
11. How will a worker apply for paid family and medical leave? How will employers remit
payments?
An online portal that workers, employers, and the FAMLI Division can access is under
development.
These answers are based on the Division’s current thinking. The Division's regulations have not been
finalized. The information contained herein is subject to change without notification. Please visit
paidleave.maryland.gov for updated information.
12. How is Maryland's family and medical leave insurance (FAMLI) program different from
the Federal Medical Leave Act (FMLA)?
FAMLI and FMLA are similar in many ways, however the biggest difference is that FAMLI
offers paid time off while FMLA ensures workers have access to unpaid time off. Also,
FAMLI’s eligibility rules include more employees and the self-employed.
When an event qualifies for leave through both FMLA and FAMLI, the leaves should run
at the same time. There will be limited cases when an event only qualifies for FAMLI. In
that case, an individual does not use any FMLA time while taking FAMLI.
13. Maryland already requires paid sick days. How is FAMLI different?
Paid sick days and FAMLI serve different purposes. It's not a perfect comparison, but
one way to think about it is that paid sick days are for everyday colds. FAMLI is for
battling a serious illness.
14. When will I be required to notify employees about paid family and medical leave?
You will be required to notify employees about paid family and medical leave:
o six months before benefits begin,
o when the employee is hired,
o once a year,
o when the employee requests paid leave, and
o when you know that an employee's leave request may qualify.
15. What should I be doing now?
o Sign up to receive emails from the FAMLI Division at paidleave.maryland.gov
o Keep an eye out for information about how to register for an account on the
online portal. After registration, all employers will automatically be enrolled in
the State Plan. You can alternatively explore private plans.
o Include contributions in future budget planning and consider whether to cover a
portion or all of your employees’ contribution.
o Start thinking about how your existing benefits may interact with FAMLI
o Begin discussing any payroll/administrative adjustments you may need to make
o Evaluate whether you may need policy and handbook changes.
o Begin talking with your employees, so they understand their future FAMLI
benefits and contributions.
These answers are based on the Division’s current thinking. The Division's regulations have not been
finalized. The information contained herein is subject to change without notification. Please visit
paidleave.maryland.gov for updated information.
Contributions Questions from Employers
16. How much will I pay for this?
For those enrolled in the State Plan:
o If you have 15 or more employees, the rate will be 0.90% of covered wages up to
the Social Security cap. You may collect up to half of the contribution rate from
your employees.
o If you have 14 or fewer employees, the rate is 0.45% of covered wages up to the
Social Security cap. You may collect up to the full amount from your employees.
While the Department of Labor sets the contribution rate for the State Plan, private
plans will set their own rates. Employees cannot be charged more in a private plan than
they would be through the State Plan.
17. Can I pay my employees’ share of contributions as an added benefit?
Yes, you can choose to pay the full contribution amount.
18. How will the Division calculate whether or not I have 14 or fewer employees?
You will be able to request a lower contribution rate. You will be required to disclose the
average number of employees you have out-of-state. The Division will add that number
to the average number reported in wage and hour reports during the four previous
quarters. If the total is below 15, you will qualify for the lower contribution rate. Your
determination will be effective for one year.
19. Will the cost change over time?
Each February, the Division will announce a rate for the following State fiscal year (July
1-June 30). It may change over time, but under current law the total rate cannot go over
1.2% of wages up to the Social Security cap.
20. Contribution and benefit amounts depend on an employee’s wages. How do you
define wages?
The General Assembly is currently considering legislation to define wages to be the
same as that used for the purposes of unemployment insurance.
These answers are based on the Division’s current thinking. The Division's regulations have not been
finalized. The information contained herein is subject to change without notification. Please visit
paidleave.maryland.gov for updated information.
21. How will contributions be collected and remitted to the State?
If you choose to collect up to half of the contribution rate from your employees, you
must collect the employee’s portion of the contribution through payroll deductions at
the time wages are paid.
You will be responsible for electronically remitting contributions to the State through
the Division’s online portal (the portal is currently under construction).
22. How often will I remit contributions to the State?
You will remit contributions to the State every three months (on a quarterly basis).
23. I understand that contributions will be made on an employees’ wages up to the Social
Security cap. How will I calculate when the employee reaches the Social Security cap,
if my employee has multiple jobs?
The cap on wages is per job. You will only need to look at wages earned from you.
24. Will I need to make and collect contributions for all my employees?
You will need to make and collect contributions for any employees working in a position
located in Maryland.
25. Will I be required to collect and make contributions for all my Maryland-based
employees, even if they may not be eligible to receive benefits? For example, will
seasonal or part time employees need to contribute?
Yes, the law does not exclude any group of employees.
26. Will I be required to make and collect contributions for my employees who live in
Maryland but work in another state?
No, eligibility and contributions are dependent on working in Maryland.
27. Will I be required to make and collect contributions for my employees who work in
Maryland but live in another state?
Yes, anyone working in a position located in Maryland will contribute.
These answers are based on the Division’s current thinking. The Division's regulations have not been
finalized. The information contained herein is subject to change without notification. Please visit
paidleave.maryland.gov for updated information.
28. For unemployment insurance purposes, I’m a reimbursable employer and only pay
based on my employees’ usage. Am I able to do something similar with FAMLI?
No, there is not a reimbursable option similar to the one offered under
the unemployment insurance program.
29. Will my costs change depending on employees’ usage of the program?
For those participating in the State Plan, you will not be charged more depending on
your employee’s usage.
Claims Questions from Employers
30. Who will be able to receive paid family and medical leave benefits?
Any employee with a qualifying event who works at least 680 hours in a position based
in Maryland in the 12 months before they need to take leave.
Self-employed individuals can opt into the program and have different eligibility
requirements.
31. What qualifying events could an employee use leave for?
• 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
32. Who is considered a “family member” of an employee?
Family members are:
• the spouse or domestic partner of the employee;
• a child (including biological, adopted, foster or stepchild) of the employee;
• a parent (including biological, adopted, foster or stepparent) of the employee or
the employee's spouse;
• a grandparent (including biological, adopted, foster or step-grandparent) of the
employee;
• a grandchild (including biological, adopted, foster or step-grandchild) of the
employee
• a sibling (including biological, adopted, foster or step-sibling) of the employee;
• a person for whom the employee, or the employee’s spouse, has court
appointed decision making authority over (financial and/or personal);
These answers are based on the Division’s current thinking. The Division's regulations have not been
finalized. The information contained herein is subject to change without notification. Please visit
paidleave.maryland.gov for updated information.
• an individual who acted as a parent or stood in loco parentis to the employee or
the employee's spouse when the employee or the employee's spouse was a
minor. (For example, the employee’s step-parent from when the employee was
a minor but who is no longer married to the employee’s birth parent);
• a child for whom the employee has court appointed decision making authority
over (financial and/or personal) and/or who lives with the employee; and
• a child the employee has assumed the obligations of a parent for without formal
adoption proceedings.
33. What qualifies as a serious health condition?
A serious health condition is an illness, injury, or physical or mental condition that meets
one or more of the following:
• Requires inpatient care,
• Involves the donation of an organ, or
• Involves continuing treatment by a licensed health care provider including:
o a period of disability due to pregnancy,
o a period of disability due to a chronic condition,
o a period of disability due to a permanent or long-term condition,
o absences to receive multiple treatments, and
o a period of incapacity of 3 or more days that also involves multiple
treatments.
34. How will I know if an employee filed a claim with the State?
You may require your employees to provide 30 days notice for foreseeable leave. For
leave that is unexpected, you may require your employees to notify you as soon as is
practicable.
Additionally, the Division will electronically notify you when your employee files a claim
and each time there is a status change to the application (determination, appeal
request, appeal, etc…).
35. How will I verify whether a new employee has worked 680 hours in the last 12
months?
Wage and hour reports will be submitted to the FAMLI Division each quarter when
contributions are due. The FAMLI Division will use those reports to verify worked hours.
These answers are based on the Division’s current thinking. The Division's regulations have not been
finalized. The information contained herein is subject to change without notification. Please visit
paidleave.maryland.gov for updated information.
36. Will someone who is unemployed be able to receive benefits?
Yes. Someone who is unemployed will be able to apply for benefits from the State.
However, they will not be able to receive unemployment benefits and FAMLI at the
same time.
37. Are there any exceptions to eligibility rules based on type of employee? For example,
are AmeriCorps, seasonal or temporary employees exempt?
The law does not exclude any group of employees. Self-employed individuals can choose
to participate.
38. How much will an employee be paid while out on paid family and medical leave?
Maryland employees will earn up to 90% of their wages up to a maximum of $1000 per
week. You have the option of “topping off” the benefit through your own plans and
policies.
39. How much time off will an employee be able to request each year through paid family
and medical leave? Are there any special circumstances that would give an employee
more time off?
When benefits become available in 2026, employees will be able to request up to 12
weeks within a 12 month period. The exact time off approved will depend on the person
and their situation. An employee may be eligible to take up to 24 weeks off in a single
year if they need to take care of their own serious health condition and welcome a new
child in the same year.
40. Will employees have to take all 12 weeks of leave at once?
No. Employees will be able to take up to 12 weeks of leave on a continuous or an
intermittent basis. Intermittent means not all at once. When an employee takes
intermittent leave, you and the employee should agree on the schedule.
41. Will employees be eligible for paid family and medical leave if they changed jobs
recently? What if they have more than one job?
An employee is eligible if they worked 680 hours in Maryland in the 12 months before
they take leave. Eligibility is not dependent on time spent at a specific or single job.
These answers are based on the Division’s current thinking. The Division's regulations have not been
finalized. The information contained herein is subject to change without notification. Please visit
paidleave.maryland.gov for updated information.
42. Some employees are eligible to take time off through the Federal Medical Leave Act
(FMLA). Will employees be able to take time off through both FMLA and Maryland's
FAMLI?
When an event qualifies for leave through both FMLA and FAMLI, the leaves should run
at the same time. There will be cases when an event only qualifies for FAMLI. In that
case, an individual does not use any FMLA time while taking FAMLI.
43. Will employees need to use their regular paid time off before they can use FAMLI?
You can not require employees to use other types of paid time off before using paid
family and medical leave.
44. What if I offer parental leave?
If you provide leave specifically designed to cover a FAMLI qualifying event, such as
parental leave, the Division is referring to that as Alternative FAMLI Purpose Leave
(AFPL). If you offer AFPL, you will be able to require that your employee take their AFPL
concurrently with FAMLI leave.
45. My company already offers short term disability insurance (STD). How will paid family
and medical leave interact with STD?
An employee will earn up to 90% of their wages up to $1000 per week through paid
family and medical leave insurance. You may choose to use your STD policy to increase
the wage replacement percentage.
46. Who will certify that the claimant has a Serious Health Condition?
A licensed health care provider will complete the medical form.
47. How will the system protect against fraud?
Preventing fraud is a top priority for the FAMLI Division. The Division will notify you
when your employee submits a claim and again after a decision. You will have the
opportunity to share pertinent information with the Division. For example, you may
submit proof that an employee is not eligible for leave.
48. Will the claims process for private plans be the same as the claims process for the
State Plan?
In general, private plans are required to follow the same process as the State.
These answers are based on the Division’s current thinking. The Division's regulations have not been
finalized. The information contained herein is subject to change without notification. Please visit
paidleave.maryland.gov for updated information.
Private Plans Questions from Employers
49. Will I have the option to provide a private plan?
All employers in the state will be required to electronically register with the FAMLI
Division. After registering, employers will automatically be enrolled into the State Plan
run by the Maryland Department of Labor. The State Plan provides an easy way to be in
compliance. You do have other options. You could seek approval for a commercial or
self-insured plan. Commercial and self-insured plans must offer benefits and protections
that are the same as or better than the State Plan. More details are forthcoming.
50. What if I already offer paid family and medical leave through my existing leave
policies?
If you provide benefits equal to or better than the State Plan, you will be able to apply
to be self-insured. Please note that the leave package will need to be approved by the
Department and meet every element of the FAMLI program. You will need to
demonstrate the plan is financially solvent.
51. If I am approved to offer a private plan, will I still need to make contributions to the
State?
No. Once your private plan is approved you will not need to make contributions to the
State Plan.
52. Will employees have a role in deciding which plan is offered?
You can seek input from employees when making a plan selection but it is not required
by law. You can make the decision that is right for your business or organization.
53. If I have a private plan, who will process my employees’ claims and benefits?
If you have a private plan, the administrator of the plan, either the insurance company
or the self-insured employer, will handle claims and benefits. Regardless of what plan
you participate in, the State will handle appeals.
54. If I choose a private plan, will I still have to submit quarterly wage and hour reports?
Yes, all employers are required to electronically submit wage and hour reports every
quarter.
These answers are based on the Division’s current thinking. The Division's regulations have not been
finalized. The information contained herein is subject to change without notification. Please visit
paidleave.maryland.gov for updated information.
55. If I offer a private plan, what additional information will I be required to send to the
State and how often?
You will be required to send claims data each quarter. Employers can face consequences
if they submit incorrect, late, or incomplete data.
56. Does the Department set the cost for private insurance plans?
While the Department of Labor sets the contribution rate for the State Plan, private
plans will set their own rates. Employees cannot be charged more in a private plan than
they would be through the State Plan.
57. If my new employee applies to take leave, will they apply through my plan or through
their former employer?
Employees will apply for benefits through their current employer’s plan.
58. Will I be able to leave a private plan and join either a different private plan or the
State Plan?
You will be able to leave a private insurance plan after a period of one year. The new
plan will not take effect until the beginning of the next quarter. There can be no gap in
coverage.
59. Will the Division be able to cancel my private plan?
Yes. The Division will be able to cancel your private plan if it determines the plan is not
meeting the requirements. This is called involuntary termination. Involuntary
terminations can result in fees and penalties.
If your question has not been answered, please click here to submit it!
