Maryland Delays Paid Family and Medical Leave Implementation with SB 828 Amendments

What Changed

Maryland Governor Wes Moore signed SB 828 on May 3, 2023, amending the state's Family and Medical Leave Insurance (FAMLI) program that was originally established in April 2022. The amendments both delay implementation and make substantive changes to the program.

Key changes include:

• Contribution start date delayed from October 1, 2023 to October 1, 2024.

• Benefits start date delayed from January 1, 2025 to January 1, 2026.

• Total contribution rate capped at 1.2% of wages, split 50/50 between employers (with 15+ employees) and employees.

• Expanded eligibility: The definition of "family member" now includes domestic partners. New Child Leave has been clarified to cover bonding during the first year after birth or placement.

• PTO supplementation: Employers may no longer require employees to exhaust employer-provided paid leave before using program benefits.

Who Is Affected

All Maryland employers will be affected by the program once contributions begin. The cost-sharing structure varies by employer size:

• Employers with 15 or more employees: Split the contribution 50/50 with employees (employers may voluntarily cover more than 50%).

• Employers with fewer than 15 employees: Employees bear the full contribution; the employer is not required to contribute but must remit employee withholdings.

Where It Applies

Maryland statewide. The program covers employees who perform work in Maryland.

When It Takes Effect

• June 1, 2023: SB 828 amendments take effect.

• October 1, 2024: Employer and employee contributions begin (delayed from October 1, 2023).

• January 1, 2026: Employees may begin applying for and receiving paid leave benefits (delayed from January 1, 2025).

Why It Matters

The one-year delay provides employers with additional time to prepare payroll systems, update policies, and plan for the financial impact of contributions. However, the expanded eligibility provisions — including domestic partner coverage and the prohibition on requiring PTO exhaustion before using program benefits — introduce new considerations that employers should address in their leave policies now.

For multi-state employers already managing PFML programs in states like Massachusetts, Connecticut, or Colorado, Maryland's program adds another jurisdiction with its own unique rules.

The Humareso Take

The delay is a relief for employers who weren't ready, but it's not a reason to put this on the back burner. Use the extra time wisely: update your payroll systems, revise your leave policies to account for the domestic partner expansion, and get ahead of the PTO supplementation change. That last point is important — many employers had built their leave policies around requiring PTO exhaustion first, and SB 828 flips that assumption. If you're in Maryland, start planning now so October 2024 doesn't sneak up on you.

Recommended Action Steps

1. Update your FAMLI program implementation timeline to reflect the new contribution start date of October 1, 2024.

2. Coordinate with your payroll provider to ensure systems are ready for the contribution withholding and remittance by October 2024.

3. Revise leave policies to expand the definition of family member to include domestic partners, consistent with SB 828.

4. Remove any policy language requiring employees to exhaust PTO before accessing FAMLI program benefits.

5. Communicate the updated timeline to employees, including when payroll deductions will begin and when benefits will become available.

6. Contact your Humareso representative for assistance aligning your Maryland leave policies with the SB 828 amendments.