Maryland DOL Has Proposed Delaying Paid Family and Medical Leave

Enacted in 2022, the Maryland Family and Medical Leave Insurance (FAMLI) program covers all employers with Maryland employees and will eventually provide most of those employees with up to 12 weeks of paid family and medical leave, with the possibility of an additional 12 weeks of paid parental leave. 

Following several prior delays, employee contributions were scheduled to begin on July 1, 2025, with benefits commencing one year later on July 1, 2026. However, the Maryland Department of Labor (Maryland DOL) is now proposing a delay until Jan. 1, 2027, for deductions and Jan. 1, 2028, for benefits, based on the need to focus on supporting Maryland businesses and their employees in light of the significant uncertainty arising from President Donald Trump’s many employment-related executive orders.

Where Are the Regulations Now?

The Maryland DOL’s FAMLI Division was directed to issue regulations to implement the FAMLI program. The Maryland DOL has engaged in an unusually extended and inclusive rulemaking process, likely impacted by amendments and delays to the program that were enacted in each of the 2023 and 2024 Maryland General Assembly sessions. At this point, the Maryland DOL has issued two sets of proposed regulations. But other sections of the proposed regulations, including enforcement, have yet to be issued.

Concerns About Implementation and a Proposed Delay

There have been significant concerns about the Maryland DOL’s readiness to implement this complex program, as well as its overall cost (approximately $1.6 billion) in the current economic climate. In fact, Maryland state Sen. Stephen Hershey has proposed a bill, Senate Bill 355, that seeks to delay the effective contribution and benefits dates by two years. 

In a hearing on this bill before the Senate Finance Committee on Feb. 5, 2025, Fiona W. Ong (the author of this article) testified about the business community’s concern that final regulations — and even entire sections of the proposed regulations — have yet to be issued only months before the first deadlines. For example, employers are supposed to begin filing a declaration of intent (DOI) to have an equivalent private insurance plan (EPIP) starting on May 1, 2025.

But at this point, employers do not have final rules about creating a self-insured plan, and insurance companies do not have final rules on creating commercial plans (which would also need to be compliant with insurance laws and regulations).

The Maryland DOL acknowledges that legislative action is required to authorize the delay and, in its press release, states that it is working closely with leadership in the General Assembly to extend the implementation dates. It is unclear whether the General Assembly will use Hershey’s bill or issue a new bill. However, given the Maryland DOL’s public statements, it is almost certain that the delay will take place.

This is a significant development for employers with Maryland employees, many of whom are concerned about the cost and impact of this program in which the state, and not the employer, grants the paid leave benefit.

Fiona W. Ong is an attorney with Ogletree Deakins in Baltimore. © 2025 Ogletree Deakins. All rights reserved. Reposted with permission.