Workforce Bulletin

Hold your horses—Maryland just added a few more furlongs to its race toward a paid family leave. On May 6, 2025, Governor Wes Moore signed House Bill 102 (the Amendment), which again pushes back the start date for Maryland’s Family and Medical Leave Insurance Program (FAMLI). This latest delay came as no surprise, given Maryland Department of Labor’s (MDOL) proposal earlier this year to extend the FAMLI implementation dates, because of the “high degree of instability and uncertainty for Maryland employers and workers” created by recent federal actions.

Dates to Begin Contributions and Use Leave Benefits

As we previously discussed, FAMLI will be funded through contributions from employees and employers with 15 or more employees. Although the Amendment does not alter FAMLI’s funding model, the required payroll deductions, previously scheduled to start on July 1, 2025, will now begin on January 1, 2027, and employers will remit the first payment to the state’s FAMLI trust fund in April 2027. The Maryland Secretary of Labor also now has until May 1, 2026, to set the contribution rates for 2027, and then until November 1st to designate the contribution rate for each subsequent calendar year.

In December 2022, New Hampshire opened enrollment to private employers in the Nation’s first voluntary paid family and medical leave insurance program, aptly named the Granite State Paid Family Leave Plan (Granite State Plan or NH PFML). The Granite State Plan, which was initially introduced in 2019 as part of a failed joint proposal with Vermont – the Twin State Voluntary Leave Plan – was enacted in 2021. Vermont has since adopted a similar voluntary program.

While most people were wrapped up in the inevitable hustle and bustle of the holidays, Vermont Governor Phil Scott announced the Nation’s second voluntary paid family and medical leave program, the Vermont Paid Family and Medical Leave Insurance Plan (VT FMLI). Initially part of a failed joint proposal with New Hampshire – the Twin State Voluntary Leave Plan – the VT FMLI largely mirrors New Hampshire’s Granite State Paid Family Leave Plan by establishing a State insurance program in which private employers and individuals may voluntarily participate.