• Because FAMLI allows an employer to choose to cover an employee’s portion of the contribution, a unionized employer that implements FAMLI’s default 50/50 contribution split without first providing the union with advance notice and an opportunity to request bargaining may risk an unfair labor practice charge.
• Since employers must already bargain over the contribution split, they could include notice of whether they will implement an Equivalent Private Insurance Plan or the state plan at the same time.
• Because contributions will begin on January 1, 2027, unionized employers may wish to act promptly to satisfy their bargaining obligations.

Where FAMLI and the National Labor Relations Act Meet

FAMLI is Maryland’s forthcoming state-mandated paid family and medical leave insurance program. Employers and employees share the cost of contributions that will fund paid leave benefits for certain qualifying events (i.e., the employee’s own or a family member’s serious health condition, bonding with a new child, or addressing military deployment–related needs). The contribution rate is capped at 1.2 percent of wages, up to the Social Security wage cap, with the actual rate adjusted annually and currently set at 0.9 percent. Contributions begin on January 1, 2027, with benefits commencing in January 2028.

Employers may implement an approved equivalent private insurance plan (EPIP) in lieu of participating in the state plan. We have discussed FAMLI in detail in prior articles,...

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