On my way home, I picked up a hot cocoa and opened a group chat, where a friend shared a screenshot. It was news that starting next January, a deduction called FAMLI would be taken from our paychecks.

Everyone had similar reactions. What else is being deducted? Is that something we can use?

Honestly, at first, I thought it was some kind of insurance product just by the name.

So I dug into it like a cat. I'll summarize what I found by checking the official Maryland Department of Labor page and a few news sources.

FAMLI stands for Family and Medical Leave Insurance, which is a paid family and medical leave insurance program run by the state of Maryland. It's a system where workers contribute a small amount of money and receive part of their salary while taking leave when needed.

Let's start with the key dates. The premium payments will apply to wages paid starting January 1, 2027. So, there are less than two months left now.

The rate is 0.9% of wages. This will be split between the employer and employee, making the employee's share 0.45%.

If you do the math, it makes sense. For an annual salary of $50,000, the employee's contribution would be about $225 a year. When broken down monthly, it's less intimidating than the cost of a few cups of coffee.

Friends who are hourly workers will be affected the same way. If they earn $800 a week, that means about $3.60 will be deducted each week, which could easily go unnoticed if they don't pay attention to their pay stubs.

However, there is a cap. The deduction only applies up to the Social Security wage base, and by law, the total rate cannot exceed 1.2%.

Also, the rate can change every year. Starting in 2027, the Department of Labor will announce the rate for the following year every November, so it's a good idea to check once a year at the end of the year.

If you work for a small company, pay attention to this part. Employers with fewer than 15 employees are not required to pay their share.

However, the employee's share of 0.45% will still be withheld. Just because the company is small doesn't mean it won't come out of your paycheck.

There's also a timeline for the company. The first payment will be quarterly, so wages from January to March 2027 must be paid by April 30.

Here's the most confusing point. Payments start in January 2027, but benefits won't be available until January 2028.

This means for a whole year, you'll just be paying into it. It's set up to build the fund first. I honestly felt a bit unfair when I first heard this.

In fact, this program was originally supposed to start sooner. It was delayed by 18 months when Governor Moore signed HB 102 in May 2025.

At that time, the state government cited the impact of federal workforce reductions and budget shortfalls. A poll showed that 55% of respondents wanted to stick to the original schedule.

So what will you receive starting in 2028? Essentially, you can take up to 12 weeks of paid leave and receive up to $1,000 per week.

Eligible situations include when you are seriously ill, need to care for a family member, or when you have a child through birth or adoption. The specific conditions are still being finalized, so they may change.

The eligibility requirement is having worked at least 680 hours in Maryland. It's said that you can combine hours from multiple jobs, but the specifics on how months are counted vary by source, so it's best to check the official regulations.

I think this 680 hours is quite significant. Friends working two part-time jobs can meet the requirement by combining their hours.

In fact, the U.S. does not have a federal paid parental leave policy. The federal FMLA provides unpaid leave to protect your job, meaning you won't receive a paycheck during that time.

So, many people around me have had to quit when they needed to take care of themselves or family members. I'm glad to see this safety net being established.

Of course, there are concerns. Small business owners worry about increased administrative burdens and the difficulty of filling positions if an employee is out for 12 weeks.

Given the number of Korean American business owners, I think this is not something to overlook. It would be wise to set up systems with payroll companies or accountants in advance.

From the employee's perspective, what you need to do now is simple. Just check if the FAMLI item is correctly listed at 0.45% on your first paycheck in January.

If something seems off, ask your HR team right away. The Maryland Department of Labor FAMLI website paidleave.maryland.gov also has an FAQ section.

I would think of this $225 not as money just disappearing, but as an insurance premium I'm setting aside for my future self. One day, when I need to curl up and rest like a cat, I can use it.

Since the application may vary slightly depending on the situation, it's safest to double-check any ambiguous points with your HR team or a tax professional.

Wrapping up before my cocoa gets cold. Let's carefully check the January pay stub together.