On April 7th, 2025, The Maryland General Assembly concluded its legislative session. Three employment-related bills were passed and will become law.
Delayed: FAMLI Program
Maryland’s Paid Family and Medical Leave Insurance (FAMLI) program, first passed in 2022, has been delayed for the third time. According to Maryland’s Labor Secretary, Portia Wu, the reason for this delay is the current shift in federal funding and unstable economic conditions in the U.S., as well as the General Assembly’s “prudent” nature and their desire to provide a stable program—even if this results in delays.
This update is set to take effect on June 1, 2025. Despite these shifts in the implementation timeline, employers should begin planning for future compliance requirements, particularly around payroll contributions and benefit coordination.
Under the newly passed legislation:
- Contributions are set to begin on January 1, 2027.
- Benefits will be available starting January 3, 2028.
- The initial contribution rate will be set on May 1, 2026.
- The state will annually set contribution and benefit rates based on program costs and the Consumer Price Index (CPI).
- New rules redefine how an employee’s wage rate is calculated for benefits with an anchor date, defined as when the employee completes their application for benefits OR FAMLI leave is implemented (whichever occurs first), to determine the applicable wage period for benefits.
Expanded: Military Employment Protections
The Employment and Insurance Equality for Service Members Act broadens the state’s protections for military service members and their dependents. These key updates include:
- Coverage now applies to all uniformed services and members of reserve units including the Public Health Service and the National Oceanic and Atmospheric Administration.
- Employers may show preference to eligible veterans and veteran spouses in hiring decisions.
- Under specific circumstances, employees are entitled to receive leave from their employer on the day direct family members are deployed or return from active duty.
- Once implemented, the FAMLI program will cover certain military-related leave.
Clarified: Parental Leave Act
The following clarification has been provided on the Parental Leave Act:
- Employers already covered by the Family and Medical Leave Act (FMLA)—i.e., those with 50 or more employees—are exempt from this state requirement.
- If an employer has between 15 and 49 employees, the Parental Leave Act applies to them.
- The Act grants up to six (6) weeks of unpaid leave for childbirth, adoption, or accepting/facilitating a foster care placement.
How Will Maryland Employers Be Affected?
These laws will have a significant impact once effective. Employers should begin preparing for the delayed—though not quite imminent—FAMLI program and ensure HR policies are updated to reflect enhanced military protections.
How Will Maryland Employees Be Affected?
While the most sweeping change—the FAMLI program—has been delayed, employees can expect expanded benefits and protections once the new timelines take effect.
- Paid leave is coming, though later than originally planned. Starting in 2028, eligible employees will be able to take up to 24 weeks of partially paid leave for qualifying family or medical reasons.
- Military families will see immediate benefits, including the right to take job-protected leave for qualifying deployment-related events.
- Eligible veterans and their spouses may also see improved job prospects, as more employers are now permitted to extend preferential hiring to these groups.
For questions about compliance or updates to employment policies, please call our office at 301-441-1400 to schedule an appointment with one of Thatcher Zavaro & Mani’s attorneys. www.thatcherlaw.com
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