The Maryland Department of Labor made significant progress today towards implementing a paid family and medical leave program, a move that will impact 2.5 million workers and 180,000 employers across the state. The Board of Public Works approved two contracts this morning, marking the beginning of work on the digital infrastructure essential to the success of the program.
Governor Wes Moore expressed his commitment to supporting workers and employers alike. “When I took office, I said that it is time for our policies to be as bold as our aspirations, and to confront the fact that we have been offered false choices,” Moore said. “We do not have to choose between a competitive economy and an equitable one. Workers in Maryland should not have to choose between their career and their family, and Maryland’s employers do not have to choose between supporting their employees and making payroll.”
The Maryland Family and Medical Leave Insurance (FAMLI) program is designed to ensure that workers can take time off for personal or family health needs without losing income. Under the new law, employees will be entitled to up to 12 weeks of paid leave, with benefits up to $1,000 per week. The law guarantees both job protection and financial support for workers during critical times, such as caring for a family member or addressing their own health conditions.
The FAMLI program, slated to begin in full on July 1, 2026, will require employers to start payroll deductions by July 1, 2025, with the first wage reports and payments due by October 31, 2025. The program is designed to benefit both workers and employers by creating a more supportive work environment during family and health emergencies.
Central to the implementation of FAMLI is the creation of a comprehensive digital system to manage benefits, payroll deductions, and wage reports. The two approved contracts will bring in Nava and Fearless LLC, companies with extensive experience in software development and large-scale systems, to collaborate with the Maryland Department of Labor’s digital team.
“Today’s vote marks an important milestone,” said Maryland Department of Labor Secretary Portia Wu. “We know that the real work is just getting started. These two vendors bring a wealth of experience building paid family leave and similar sized systems and are critical to delivering on FAMLI’s mission of ensuring Maryland workers, families, and employers thrive even during life’s most vulnerable moments.”
Both vendors will utilize a modern, user-centered approach to software development, ensuring the system is accessible and effective for all stakeholders. The process will include thorough research, design, coding, and testing phases to ensure the platform meets the needs of Maryland’s workers and employers.
The introduction of FAMLI is seen as a significant step forward in Maryland’s efforts to create a fairer workplace environment. By guaranteeing financial security during medical or family emergencies, the state aims to reduce the difficult choices many workers face between their health or family responsibilities and their jobs.
The state is also aiming to balance the needs of businesses with employee welfare. As Governor Moore emphasized, the program is intended to ensure that businesses can thrive while supporting their workforce through difficult times.
The Maryland Department of Labor encourages residents and employers to stay informed about the program as it develops. For more information about FAMLI and its implementation timeline, visit paidleave.maryland.gov.
