Nearly every employer in Maryland — including family farms with just one hired hand — will soon be required to provide employees paid family and medical leave under the state's new Family and Medical Leave Insurance (FAMLI) program. For Maryland Farm Bureau members who employ even one W-2 worker, the law carries real deadlines, real costs, and real choices, many of which arrive well before any benefits are ever paid out.

FAMLI, administered by the Maryland Department of Labor, will let eligible employees take up to 12 weeks of job-protected leave a year — up to 24 weeks in cases combining an employee's own serious health condition with bonding leave — while collecting up to $1,000 a week in wage replacement. The leave can be used to welcome a new child, recover from a serious health condition, care for a family member with a serious illness, or manage family needs tied to a military deployment.

No Exemption for Small or Family-Run Operations

Unlike Maryland's unemployment insurance system, FAMLI does not exempt any category of employer. Every business with at least one W-2 employee in Maryland must participate, regardless of payroll size — and that includes part-time, seasonal, and J-1 workers, categories common on Maryland farms. Already offering paid time off, private disability coverage, or complying with the federal FMLA does not excuse an employer from FAMLI.

What It Will Cost

The law does build in some relief for the smallest operations. Employers with fewer than 15 total employees (counting everyone on payroll, in Maryland or otherwise) are not required to pay the employer share of the contribution, though they must still collect and remit the employee share. For employers with 15 or more employees, the Department of Labor set the 2027 contribution rate at 0.9 percent of covered wages up to the Social Security wage cap, which can be split evenly between employer and employee (0.45 percent each) unless the employer chooses to cover the full amount. On a $1 million payroll, that works out to roughly $9,000 a year; on a $10 million payroll, about $90,000.

A Choice: the State Plan, or a Private Option

Farms are not required to use the state's plan. An employer may instead apply to self-insure or purchase a private insurance plan, as long as it matches or exceeds the benefits and protections of the state plan. But the window to make that choice for 2027 is narrow: employers who want to pursue a private plan starting next year must file a Declaration of Intent with the state between September 1 and November 15, 2026. Employers who miss that window default into the state plan and will owe 2027 contributions to the state, even if they later move to a private plan.

Employers planning to go the private-plan route should also know that any 2027 contributions withheld from employees must be held in escrow while the private plan is finalized — a requirement the state has not yet released full details on.

Registering with FAMLI

Regardless of which path a farm chooses, registration is mandatory starting this fall at account.paidleave.maryland.gov. An authorized officer — an owner, partner, or other individual with legal authority to act on the business's behalf — must register using the farm's federal Employer Identification Number, along with the legal business name, NAICS code, and business address and contact information.

Employers considering registration or a private plan should begin compiling employee census data now, including date of birth, gender, home and work zip codes, and W-2 wages (including bonuses and commissions) up to the 2026 Social Security wage base of $184,500.

Notice Requirements for Employees

Employers will also need to notify workers of the program at several points: one pay period before payroll deductions begin, starting July 2027 (six months before benefits begin), when an employee is hired, once a year thereafter, and whenever an employee requests or is understood to be taking FAMLI-qualifying leave.

Key Dates at a Glance

Dates and rates are set by the Maryland Department of Labor and are subject to change as rule making continues.

Getting Ahead of It

Rules for FAMLI are still being finalized, and additional guidance from the Maryland Department of Labor is expected throughout the fall. Farm operations that get ahead of the decision — registering, budgeting for the contribution, and weighing the state plan against a private option — will be in a far better position than those trying to sort it out after the Declaration of Intent window closes.

Members can sign up for direct updates from the state through the FAMLI listserv at paidleave.maryland.gov, and Maryland Farm Bureau will continue to share updates as new guidance is released.

Learn More About FAMLI | Maryland Farm Bureau is hosting the following opportunities to help members prepare:

• Webinar 1  —  Tuesday, September 22^th at 12:00 PM
• Webinar 2 —  Tuesday, September 29^th at 7:00 PM
• In-Person Info Session —  Monday, October 5th, 2:00 PM, Annapolis, MD at Governor Calvert House