Maryland
Maryland: Final Regulations Issued for FAMLI Program
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APPLIES TO All Employers with Employees in MD |
EFFECTIVE MAR 30, 2026 |
QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion
In 2022, Maryland enacted the Family and Medical Leave Insurance (FAMLI) program to provide most Maryland employees with paid family and medical leave. Following several legislatively mandated delays, the Maryland Department of Labor (MDOL) published final regulations on March 30, 2026, and updated FAQs in April 2026. Employer and employee contributions begin January 1, 2027, and benefits commence in January 2028. Key aspects of the final regulations are summarized below.
Employee Eligibility and Benefits. Employees are eligible for FAMLI benefits if they have worked at least 680 hours in Maryland over the 12 months preceding the start of leave, which may be satisfied through work with any combination of employers. Qualifying events include the employee’s own serious health condition, a family member’s serious health condition, parental bonding, military caregiver leave, and qualifying military exigencies. The definition of “family member” is broader than under the FMLA, extending to domestic partners, grandparents, grandchildren, siblings, and individuals standing in loco parentis. Benefits are calculated using a two-tier wage replacement formula providing 90% of wages up to 65% of the state average weekly wage, plus 50% of wages above that threshold, subject to a $1,000 weekly maximum.
Contributions and Plan Options. The 2027 state plan premium rate is 0.9% of payroll up to the Social Security Wage Base, with employers permitted to pass up to 50% of the cost through to employees. Employers have three options for providing FAMLI benefits: (1) the default state-administered plan; (2) a self-insured Equivalent Private Insurance Plan (EPIP); or (3) a commercially insured EPIP. The MDOL also announced that employers that wish to offer an EPIP rather than participate in the state plan must submit a Declaration of Intent (DOI) to the FAMLI Division between September 1, 2026 and November 15, 2026, followed by a full EPIP application during 2027. Employers that submit a timely DOI are exempt from state plan contributions during 2027 but must hold escrowed contributions pending EPIP approval. Employers that are enrolled in the state plan will be required to pay a full year of premiums in 2027 before benefits begin, while employers with a commercially insured EPIP will not owe premiums until January 2028.
Coordination with Existing Leave. The regulations confirm that general purpose leave (e.g., PTO, vacation, or sick leave) may not be required to run concurrently with FAMLI leave, though employees may use paid sick leave before FAMLI benefits without a written agreement. Employers may designate a separate bank of leave as Alternative FAMLI Purpose Leave (AFPL) specifically for FAMLI-qualifying purposes and require it to run concurrently with FAMLI under specified conditions, with FAMLI serving as the primary benefit and AFPL supplementing up to 100% of the employee’s average weekly wage.
Notice and Administrative Requirements. Employers must provide FAMLI notices to employees using MDOL-mandated templates at hire, annually, six months before benefits commence, 30 days before any changes to FAMLI procedures, and when the employer is aware that an employee’s leave may qualify for FAMLI. Employers must also create an online account with the FAMLI Division for submitting quarterly wage reports and remitting contributions. The FAMLI Division will create sample notices for employers to use, but they have not yet been released. Employers should monitor the Division’s “For Employers” page for future updates.
Action Items
- Review the full final regulations here.
- Prepare for DOI submission, if pursuing EPIP.
- Review existing leave policies to prepare for coordination with FAMLI leave.
- Monitor MDOL website for information on template employee notices.
- Create online employer account with MDOL FAMLI Division, as appropriate.
- Have appropriate personnel trained on the requirements.
Maryland: Legislative Updates
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APPLIES TO As Indicated |
EFFECTIVE As Indicated |
QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion
The Maryland General Assembly’s 2026 session produced several significant pieces of legislation impacting employer obligations and employee labor rights. Key provisions are summarized below.
Child Labor Penalties, Workplace Committees, and State Labor Board. Effective June 1, 2026, SB 831 addresses three distinct subject areas:
- Civil Penalties for Child Labor Violations.Maryland already imposes criminal penalties for knowingly employing a minor in violation of child labor restrictions. SB 831 adds new civil penalties of up to $16,035 per general violation and up to $72,876 per willful or repeated violation involving hazardous or prohibited employment, both subject to annual increases beginning in 2027.
- Prohibition on Certain Employer-Initiated Workplace Committees.SB 831 prohibits employers from allowing the formation of workplace groups that include both supervisors and employees to address working conditions of mutual interest, where two conditions are met: (1) the group may be dissolved unilaterally by the employer, and (2) the group is expressly exempt from NLRA or NLRB jurisdiction through any federal action occurring on or after January 1, 2026. Traditional labor organizations subject to NLRB jurisdiction and committees required for industry accreditation are not affected.
- Conditional State-Level Labor Board for Private Sector Employees.SB 831 establishes a conditional framework under which the existing Maryland Public Employee Relations Board (PERB) would assume authority over private sector labor relations if the NLRA is repealed or the NLRB expressly cedes jurisdiction to Maryland. If triggered, PERB would be empowered to conduct union elections, certify bargaining representatives, order employers to bargain or submit to binding arbitration, adjudicate unfair labor practices, and impose civil penalties of up to $1,000 per affected employee.
County Discrimination Claims. Effective October 1, 2026, SB 694 allows employees to satisfy the administrative filing prerequisite for bringing a civil action under county discrimination laws by filing a complaint with the Maryland Commission on Civil Rights. This option is available in addition to filing with the applicable local county agency. Current law requires employees to file with the local county agency and observe a waiting period (ranging from 45 to 60 days, depending on the county) before initiating a civil action. SB 694 extends this Commission-filing option to all counties with local discrimination laws, potentially streamlining the path to civil litigation for employees with discrimination claims.
Captive Audience Meetings. Effective October 1, 2026, SB 417 prohibits employers from requiring employees to attend mandatory meetings on union organizing, religious, or political matters. Voluntary meetings on these topics remain permissible, and an exemption applies for employee training related to compliance with federal or state laws, including those addressing discrimination, harassment, and workplace safety. Violations may result in civil penalties, cease-and-desist orders, injunctive relief, compensatory damages, job reinstatement, back pay and benefits, and attorneys’ fees and costs. Employers will also be required to post a notice regarding these prohibitions and provide it to new hires upon hire. A model notice will be developed by the Commissioner of Labor and Industry.
Noncompetes for Licensed Architects. Effective October 1, 2026, HB 1016 renders noncompete agreements unenforceable against licensed architects in certain circumstances. Specifically, the law applies where the architect’s employer had a primary Maryland worksite with more than 30 employees at the time of hire but subsequently relocated either the majority of its employees or its principal place of business outside of Maryland.
Medical Cannabis Protections for Fire and Rescue Public Safety Employees. Effective October 1, 2026, SB 439 amends the state Fair Employment Practices Act to prohibit public employers from discriminating against fire and rescue public safety employees (e.g., firefighters, emergency medical technicians, cardiac rescue technicians, and paramedics) for the valid off-duty use of medical cannabis. The law does not apply to private employers, and exceptions apply where federal law compliance or the loss of a federal benefit would be implicated by the protections. Employers retain the right to prohibit on-duty use and take action against employees who work under the influence.
Action Items
- Review youth employment practices for compliance, as applicable.
- Evaluate existing employer-initiated workplace committees or advisory groups, as applicable.
- Review mandatory meeting practices and consult with legal counsel regarding compliance with captive audience prohibitions.
- Post required notice regarding captive audience prohibitions.
- Review noncompete agreements with legal counsel, as applicable.
- Have appropriate personnel trained on the requirements.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase