On April 25, 2024, Gov. Moore approved SB0485/HB0571 modification bills, which delay implementation of Maryland’s family and medical leave insurance (FAMLI) program, sometimes referred to as Time to Care Act of 2022. Implementation has faced several delays and modifications since inception, most recently as reported in our May 11, 2023, edition of Compliance Corner.

Most notably, contributions will now begin July 1, 2025 (previously October 1, 2024). Benefits will now be available to eligible employees beginning July 1, 2026 (previously January 1, 2026). Other notable modifications include:

• Expands list of qualifying events to include care for a service member (to better align with FMLA).
• The definition of “wages” is updated to match the Maryland Unemployment Insurance statute.
• Employers can choose to participate in the State Plan or can enroll in a private plan. However, workers cannot be charged more for a private plan than they would if the employer participated in the State Plan. Employers choosing a private plan may be assessed additional fees.
• Total contributions are based on employer size but cannot exceed 0.9% of covered wages (applied to all wages up to and including the Social Security wage base).

The Department of Labor will update its draft regulations and host a public engagement session prior to initiating the formal regulatory review process. Employers with at least one employee in Maryland should continue to monitor the state’s FAMLI website.