EBS of RCM&D Division Director, Ben Bohonowicz joined Sarah Hipp and Tim Detwiler from Mutual of Omaha Insurance Company to deliver a comprehensive overview of Maryland’s Paid Family and Medical Leave (FAMLI) program on October 16.
Access the full webinar here to learn more about how the FAMLI program will impact your organization.
The webinar provided valuable insights for Maryland employers seeking to understand how FAMLI will impact their organizations and navigate the upcoming implementation timeline. Maryland’s FAMLI program will join the ranks of 10 other active programs by July 1, 2026, offering eligible workers paid time off for qualifying events.
Key Takeaways
Timeline – The program is currently in the rule-making phase, with draft regulations issued in July 2024. Here are the important dates to remember:
- July 1, 2025: Contributions begin (one year of pre-funding).
- July 1, 2026: Benefits become available to eligible employees.
Coverage and Eligibility – Employees must have worked at least 680 hours in Maryland during the four quarters preceding their leave request to be eligible. The program applies to:
- Employers: Any business paying wages to at least one Maryland employee.
- Employees: Maryland workers who earn wages in the state (subject to eligibility requirements).
- Covered Family Members: Employees can take leave to care for a spouse/domestic partner, child, parent/parent-in-law, grandparent, grandchild or sibling.
Funding and Benefits – To ensure adequate financial support during leave periods, Maryland’s FAMLI program is funded through employer and employee contributions, while offering a tiered benefit structure.
- Contributions: Employers and employees share the cost of FAMLI through quarterly contributions based on wages paid. The contribution rate is 0.9% of covered wages, with a lower rate (0.45%) for businesses with fewer than 15 employees.
- Benefits: The program provides a maximum weekly benefit of $1,000 for 2026, with a minimum of $50 per week. Benefits are calculated based on a tiered system.
Employer Next Steps
Consider Private Plans (EPIPs): Employers can opt out of the state-run program by offering an approved private plan that provides equal or better benefits. EPIPs offer potential advantages such as faster claim processing and customizable features.
Make Informed Decisions: Employers should carefully consider several factors including choosing between the state plan and an EPIP, integrating FAMLI with existing benefits and developing communication strategies for employees.
How EBS of RCM&D Can Help
Maryland’s FAMLI program presents new considerations for Maryland employers. We are here to support you through a smooth implementation process. Our team of benefit advisors possesses the knowledge and resources to guide you through every step.
- Plan Selection: We will work with you to compare the state-run FAMLI program with private plan options (EPIPs) to determine the best fit for your organization’s needs and budget.
- Integration Assistance: We will assist with integrating FAMLI into your existing benefits programs, ensuring seamless administration and employee experience.
- Communication Development: We will help you develop clear and concise communication strategies to effectively inform employees about their FAMLI rights, benefits and enrollment process.
Access the full webinar here to learn more about how to prepare your organization for the FAMLI program.