FAMLI)
The following states and the District of Columbia have, as of 2026, mandatory paid family leave programs.
California
Connecticut
Delaware
Massachusetts
Maryland
Maine
Minnesota
New Jersey
New York (mandatory private insurance system)
Oregon
Rhode Island
Virginia
Washington
District of Columbia
Nine states have voluntary paid family leave programs:
Alabama
Arkansas
Florida
Kentucky
South Carolina
Tennessee
New Hampshire
Vermont
Rest of states are expected to follow in one form or another
This post will discuss Delaware and Maryland mandatory requirements. Businesses from other states that have employees should contact me to determine their state’s requirements.
I will explain Maryland and then compare how Delaware is a little less stringent where applicable. Less stringent is important to me due to the impact on small businesses (while small businesses are sales under $30 million, most small businesses have sales under $10 million). These small businesses will feel the impact the most. Besides, rule changes like these will impact the cost of their products and services to the customer. Please do not think I am opposed to the family leave act; I just have concerns about its costs.
There is no assistance to the employee until 2028. The payroll deductions and employer financial responsibilities collected throughout 2027 is “seed money.” To pay the benefit to an employee, there needs to be a solvent fund established.
Employers must register in Fall of 2026 between the dates of 9/1/26 through 11/15/26 or file a declaration of intent for private coverage. The private plans must comply with the insurance code and offer at least the same as state plan in coverage. They must also file quarterly reports and claims data. Private plans must maintain funds in escrow account.
Employee deductions and employer requirements begin January 2027.
Delaware began this process in January of 2025 and went into effect in January of 2026.
The first report required of the employer is April 27, 2027, through the Department of Labor.
In Maryland, a company with one employee is required to register. Delaware regulates this for businesses with 10 or more employees.
The registration must be done by ONLY the owners of the company, not an accountant or any one on staff. After registration, the accountant (or outside payroll services) can be added to file reporting.
The cost:
.9% which can be .45% for employees and .45% for employer but employer can pay all but may have tax implications (at a later date I will post in reference to the federal Employer Credit for Paid Family and Medical Leave). In November 2027 there could be a rate change notification.
If less than 15 employees the business is exempt from paying their share (and yes, that is for Maryland).
To claim the benefit:
Employees must work at least 680 hours over 4 quarters which can span multiple employers. Must have worked in most recent quarters.
Employers CANNOT require workers to use time off while using FAMLI. Employers can convert time leave to dollars to give more wage replacement if they choose.
Claims are filed through the state and the employer is notified for data verification. An employer can claim fraud but not for the reason of too busy at business. The state confirms and notifies employee of any benefit.
Now for some good news:
The coverage is up to 12 weeks leave in 12 months with one exception of 12 weeks per event up to 24 weeks per year. This exception is for serious health (believe just for the employee) or welcomes child.
The definition of family is very large. A child even includes a foster or adopted child to give them time to adjust. Family includes even in-laws. The coverage also includes preparing the family for deployment.
From the law code (if you care to read it, https://regs.maryland.gov/us/md/exec/comar/09.42.01.01#B(25)(b):
Family member” means:
(a) A biological child, an adopted child, a foster child, or a stepchild of the covered individual;
(b) A child for whom the covered individual has legal or physical custody or guardianship;
(c) A child for whom the covered individual stands in loco parentis, regardless of the child’s age;
(d) A biological parent, an adoptive parent, a foster parent, or a stepparent of the covered individual or of the covered individual’s spouse;
(e) The legal guardian of the covered individual or the ward of the covered individual or of the covered individual’s spouse;
(f) An individual who acted as a parent or stood in loco parentis to the covered individual or the covered individual’s spouse when the covered individual or the covered individual’s spouse was a minor;
(g) The spouse of the covered individual;
(h) A domestic partner of the covered individual;
(i) A biological grandparent, an adopted grandparent, a foster grandparent, or a stepgrandparent of the covered individual;
(j) A biological grandchild, an adopted grandchild, a foster grandchild, or a stepgrandchild of the covered individual; or
(k) A biological sibling, an adopted sibling, a foster sibling, or a stepsibling of the covered individual.
As more information becomes available, I will make posts. Any questions, let me know. We will figure all this out together.
For registration:
Maryland portal https://paidleave.maryland.gov/
Delaware portal Delaware LaborFirst – Delaware Department of Labor