Maryland employers will face a new compliance milestone tied to the state's Family and Medical Leave Insurance (FAMLI) program in 2027, according to a compliance guide published by law firm Crowell & Moring LLP.

The state's Time to Care Act, signed in 2022, created a paid family and medical leave benefit for Maryland workers. The Crowell & Moring guide frames 2027 as the next major employer-facing milestone, calling attention to payroll mechanics, written notice requirements, and the interplay between state and federal leave entitlements.

What does the 2027 milestone mean for HR?

The 2027 date positions Maryland's FAMLI program in its operational phase. Payroll contributions are already flowing into the state's FAMLI fund, and benefit payments to eligible workers are scheduled to begin in 2026.

By 2027, employers should be running the program at full scale — collecting the per-paycheck contribution, posting required workplace notices, and integrating FAMLI with existing federal Family and Medical Leave Act processes.

Key obligations HR should track

• Payroll deductions remitted to the Maryland Department of Labor through the state's FAMLI portal. The statutory rate is 0.9% of covered wages, split between employer and employee for employers with 15 or more workers; smaller employers can opt in and pay the full share.
• A written notice to new hires and a workplace poster describing program rights.
• Job restoration for any employee returning from FAMLI leave, mirroring the federal FMLA.
• Anti-retaliation rules for workers who request or take FAMLI leave.
• Coordination with employer-sponsored short-term disability, parental leave, and collectively bargained leave programs to avoid duplicative benefits.

Who is covered?

The program covers private employers with at least one Maryland-based employee. Self-employed workers and government employers may opt in. Employees qualify after working 680 hours during the immediately preceding four completed calendar quarters — a threshold meant to capture most full-time staff and many part-time workers.

What reasons qualify for leave?

The benefit covers six categories: bonding with a new child during the first 12 months, caring for a family member with a serious health condition, the employee's own serious health condition, military exigency leave, certain military family events, and safe time for victims of domestic violence or sexual assault.

How is wage replacement set?

The benefit replaces 90% of an eligible worker's average weekly wage up to a state-set cap, with a lower replacement rate on wages above that line. The framework mirrors formulas used in other state paid-leave programs and is recalculated annually against Maryland's average weekly wage.

What should HR teams do now?

HR leaders have a two-year runway between benefit launch and the 2027 milestone flagged in the guide. Three readiness tracks should move in parallel: audit payroll systems to confirm the FAMLI deduction is being calculated correctly on every covered paycheck; update leave policies to spell out how FAMLI interacts with FMLA and any company-provided parental or caregiver leave; and train managers and HR service-desk staff on eligibility, the request process, and anti-retaliation rules.

Maryland joins more than a dozen states with paid family and medical leave programs in effect or coming online. The 2027 milestone will test employer workflows that have only been on the books for a few years. Crowell & Moring's guide, written by the firm's labor and employment group, signals that outside counsel are now advising HR and general counsel teams to treat the date as a hard planning deadline rather than a distant one.