Maryland workers will see a new payroll deduction starting Jan. 1, 2027 to fund the state's Family and Medical Leave Insurance program — but they will not be able to claim benefits until 2028.

That multi-year gap between contributions and payouts defines the rollout of FAMLI, a statewide paid leave program that supporters say is designed to give employees a more secure work-life balance. For employers, the Jan. 1 start date is now the operative compliance deadline: payroll systems need to handle the deduction, and communications teams should prepare to answer questions about a deduction that funds benefits workers cannot yet access.

What changes on Jan. 1, 2027?

Three things change for Maryland employers and their payroll operations:

• A new deduction line appears on paychecks tied to the FAMLI program, affecting covered workers across the state.
• Employee communication becomes urgent. Workers will see money come out of their pay well before any benefit is payable, a dynamic that typically drives help-desk volume.
• Compliance planning shifts to 2028. Benefits are expected to begin in 2028, which is when leave administration, job protection coordination and claims processes will move to center stage.

Who is explaining the program to employers?

Jen Berman, senior vice president of compliance at Kelly Benefits, was set to explain the pros and cons of the new law, according to the report. Her involvement signals that benefits administration firms are already positioning themselves to guide employers through the phased rollout — and that employers should expect an active education campaign in the months before the deduction takes effect.

Why the gap matters for people teams

The structure of the program — pay first, receive later — creates a specific HR challenge. Employees contributing from 2027 onward will not see a return until 2028, so HR departments will need to explain the value proposition of FAMLI clearly: the program is intended to provide income security when employees need to balance their jobs and family needs.

Supporters frame the deduction as an investment in that security. The practical task for employers is translating a statutory payroll change into a benefit story that keeps trust intact through the contribution-only period.

Employers with multistate workforces should also treat Maryland's timeline as one more state paid leave program to calendar alongside similar mandates elsewhere. Each program carries its own effective dates, deduction rules and benefit start dates, and FAMLI's 2027-2028 sequence is now fixed on that map.

As the Jan. 1, 2027 deduction date approaches, expect guidance from Kelly Benefits and other administrators to sharpen — and expect Maryland employers to spend the interim period configuring payroll and drafting the employee messaging the rollout will demand.