Maryland Department of Labor Takes Major First Step in Making Paid Family and Medical Leave Insurance a Reality for 2.5 Million Workers

Baltimore, MD (October 2, 2024) - The Maryland Department of Labor took a major first step today in making paid family and medical leave a reality for 2.5 million workers and 180,000 employers in the state. The Board of Public Works this morning approved two contracts to begin work on the digital framework to build the digital system for administering the paid leave program.

"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," said Gov. Moore. "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) system will ensure Maryland workers will still be paid when they need time to care for a family member or address their own serious health condition. The law guarantees workers time away from work, job protection, and the ability to earn up to $1000 a week for up to 12 weeks.

Under the FAMLI program, employers will start payroll deductions on July 1, 2025, and the first quarterly payment and wage and hour reports will be submitted to the state by October 31, 2025. Benefits will begin July 1, 2026.

A digital system is at the heart of fulfilling FAMLI's mandate. The two vendors, Nava and Fearless LLC, will work in tandem, alongside MD Labor's digital team using modern, user-centered software development methodology, which includes research, design, coding, and testing.

"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."

For more information about FAMLI, visit paidleave.maryland.gov

The Department of Labor strives to create an equitable and inclusive Maryland where all residents have the opportunities and resources to attain financial stability, reach their career potential, and contribute to their communities; where businesses have access to capital and the skilled workforce they need to succeed; where workplaces are safe and well-regulated; and where the economy is resilient and growing. For updates and information, follow Labor on LinkedIn, Twitter, Facebook, and visit our website.

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Jamie Fragale

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