Maryland’s Paid Family & Medical Leave (PFML): What Brokers and Employers Need to Know Now

Benefit Indemnity Corporation
Phone: 443-275-7400
Email: info@benefitindemnity.co

As legislation continues to reshape the employee benefits landscape, one of the most significant upcoming changes for employers in Maryland is the implementation of the state's Paid Family & Medical Leave (PFML) program.

While benefits under the program won't be available until 2028, the timeline leading up to that date is just as important—and requires early awareness and planning.

A Program with a Long Runway
Maryland's PFML program introduces a state-administered benefit designed to provide wage replacement for employees who need time away from work for qualifying family or medical reasons.

However, there's a key detail that employers can't afford to overlook: contributions to the State Plan begin well before benefits are payable. This creates a potential gap where employers and employees are funding the program without immediate access to its benefits.

Why This Matters for Employers
For many organizations, this early contribution period raises important financial and strategic questions:

Are we comfortable contributing for a year before benefits begin?
Should we explore a Private Plan alternative?
How will this impact overall benefits costs and employee communication?

Without a proactive approach, employers may find themselves reacting to the program rather than leveraging it as part of a broader benefits strategy.

State Plan vs. Private Plan Considerations
Maryland's PFML framework allows employers to choose between participating in the State Plan or applying for approval of a Private Plan.

Understanding the differences is critical:

State Plan: Standardized, state-run program with required contributions and fixed benefits.
Private Plan: Employer-sponsored alternative that must meet or exceed state requirements, often offering more flexibility in employer and employee experience.

For brokers, this is a key advisory opportunity—helping clients evaluate which path aligns best with their workforce, budget, and long-term strategy.

The Role of Education and Early Planning
The lead-up to PFML implementation isn't just about compliance—it's about positioning.

Brokers who stay informed on legislative updates, contribution timelines, and plan design options will be better equipped to:

Guide employer decision-making
Identify cost-saving opportunities
Align PFML with existing benefits strategies

Start the Conversation Now
Although 2028 may seem distant, the financial and administrative implications of Maryland's PFML program are already taking shape. Planning ahead is critical, as employers must elect either the State Plan or a Private Plan this Fall, between September 1 and November 15.

Employers that begin evaluating their options early—especially the potential advantages of Private Plans—will be in a stronger position to manage costs, reduce disruption, and deliver a more cohesive benefits offering to their employees.

Benefit Indemnity Corporation
Phone: 443-275-7400
Email: info@benefitindemnity.co

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Maryland’s Paid Family & Medical Leave (PFML): What Brokers and Employers Need to Know Now

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