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FAMLI Implementation Date and Program Changes

Effective June 1, 2023, the Maryland Family and Medical Leave Insurance (FAMLI) program implementation dates will be:

  • October 1, 2024, instead of 2023, for employers with 15 or more employees to begin program contributions.
  • January 1, 2026, instead of 2025, for covered employees to begin submitting program claims.

Despite the delayed implementation dates, the total rate of employer and employee contributions will still be set on or around October 1, 2023, and won’t exceed 1.2% of an employee’s wages. This rate will be effective from October 1, 2024, to June 30, 2026. Some additional changes (but not all) include:

  • A 50-50 split in the cost-sharing formula for program contributions between employers and employees; and
  • The addition of domestic partners to the definition of covered family members and child bonding.

The Maryland Department of Labor is expected to release more information and guidance.


Noncompete Restriction Threshold Lowered

Maryland bans the use of non-compete restrictions in employment contracts with employees who earn equal to or less than $15 per hour or $31,200 annually. This restriction applies regardless of whether the parties entered the contract in Maryland. Effective October 1, 2023, this restriction will diminish significantly to apply to contracts with employees who earn equal to or less than 150% of the state’s minimum wage.

Recreational Cannabis Legalized

As of July 1, 2023, Maryland legalized recreational cannabis for individuals 21 and older. The law doesn’t speak to employer rights or obligations, or to any employee protections for off-duty use. This means, at least for now, that employers can maintain zero tolerance policies if so inclined. However, keep in mind that the state has protections for off-duty medical use of cannabis.

HR Services Team
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