What You Need to Know About the Initiation of Family Leave Contributions in Maryland This Year
Maryland employers are scheduled to start making contributions to the Family and Medical Leave Insurance (FAMLI) Fund from October 1, 2024. The move falls under Maryland’s Time to Care Act of 2022, designed to provide paid leave benefits for employees needing time away from work for specified reasons. Eligible employees will begin receiving benefits from the fund starting January 1, 2026.
The Maryland Department of Labor (MD DOL) has initially set the contribution rate at 0.90% of covered wages, divided equally between employees and employers with 15 or more workers, and small businesses with less than 15 employees are exempt. This rate will remain until June 30, 2026, after which the MD DOL will determine rates annually, never exceeding 1.2% of an employee’s wages.
All Maryland employers with at least one employee are covered under this program. However, only those with 15 or more employees are required to contribute to the FAMLI fund. Self-employed individuals without other employees can opt to participate in or opt out of the fund.
With the new law, employees are eligible for paid leave after working at least 680 hours within twelve months before the commencement of their leave. They can take up to 12 weeks of paid leave in a year for specific reasons, extendable to 24 weeks if they experience a health condition and a birth, adoption, or foster placement within the same period.
The benefit amount under the FAMLI fund depends on the employee’s compensation rate, ranging from a minimum of $50 per week to a maximum of $1,000 per week. Also, employers offering equivalent or superior leave benefits can opt out of the program, exempting both the employee and employer from contributions to the FAMLI fund.