Maryland’s FAMLI Program: What Trainers and Racing Employers Need to Know

Maryland’s new Family and Medical Leave Insurance program will bring changes to payroll and staffing throughout the state’s racing industry. For trainers, breeding farms and other businesses with employees in Maryland, preparing for FAMLI means understanding new responsibilities—and how the program will support workers facing serious health conditions or family caregiving needs.

As Maryland Farm Bureau highlighted in a recent article about the program, even a small, family-run operation can be covered. Racing employers should begin preparing before payroll contributions start on January 1, 2027. Employees will be able to receive benefits beginning January 1, 2028. Maryland FAMLI program overview

For eligible employees, FAMLI will generally provide up to 12 weeks of paid, job-protected leave, with wage-replacement benefits of up to $1,000 per week. Qualifying reasons include welcoming a child, managing a serious health condition, caring for a family member with a serious health condition, and certain needs related to military service. The weekly payment depends on the employee’s wages; $1,000 is the maximum, not a guaranteed benefit. Employee benefits

Employees generally must have worked at least 680 hours in employment localized in Maryland during the four reported calendar quarters before their application or leave begins, whichever comes first. Hours can come from more than one employer—an important consideration for backstretch workers who change barns or work for multiple operations. Eligibility rules

Small stables are covered. An employer with even one Maryland employee must register, and employers with fewer than 15 employees still have reporting and leave-related responsibilities. Employers must generally maintain employees’ health benefits during FAMLI leave and return them to the same or an equivalent position afterward. Employer requirements

The contribution rules provide some relief for smaller operations. For 2027, the State Plan’s total rate is 0.9% of covered wages, up to the Social Security wage cap:

• Employers with 15 or more employees: The employer and employee shares are generally 0.45% each.
• Employers with fewer than 15 employees: No employer contribution is required, but the business must remit the employee share of 0.45%, which it may deduct from wages.
• Any employer: The business may choose to cover the employee’s share.

For example, on $1,000 in covered weekly wages, the employee share is $4.50. An employer subject to the matching contribution would add another $4.50. Employee counts include workers inside and outside Maryland under the same federal Employer Identification Number. A trainer with employees in several states should therefore count the entire operation when determining whether the employer contribution applies. Contribution guidance

For racing businesses, coverage also requires attention to where employees work. Crews that move between Maryland and other racing jurisdictions may require an individual review under the state’s localization rules. Neither a worker’s residence nor an occasional trip to a Maryland track settles that question. Part-time and seasonal employees are included, and exemptions under unemployment insurance do not automatically carry over to FAMLI. Maryland FAMLI FAQs

Trainers should also distinguish their obligations as employers from their own eligibility. A trainer who receives wages as an employee of the business may be covered. A self-employed trainer is not automatically covered personally simply because the stable’s employees participate. Maryland says information about the separate, optional program for self-employed residents will be available in 2028. Owner eligibility, Self-employed participation

The operational impact deserves early planning. Horses require daily care, and a key employee’s extended absence may require temporary help, additional training or revised assignments. Leave can sometimes be intermittent. In certain circumstances involving both an employee’s own serious health condition and welcoming a child, eligibility can extend to 24 weeks within a benefit year. Leave-duration rules

FAMLI benefits are paid through the State Plan or an approved private plan. Trainers should nevertheless budget for the practical costs of maintaining barn coverage while an employee is away. Existing leave policies also need review: employers cannot require workers to exhaust ordinary vacation or sick leave before using FAMLI, and leave qualifying under both FAMLI and the federal Family and Medical Leave Act generally runs concurrently. Employee benefits, Leave coordination

Employers considering a private plan face an earlier decision. Those seeking relief from remitting 2027 contributions to the State while pursuing a private plan must submit a Declaration of Intent by November 15, 2026. Approval carries escrow requirements; it does not eliminate the obligation to fund contributions. Private plans must receive state approval and provide equivalent or better benefits. Private-plan requirements

Trainers and other racing employers should now register, confirm their employee count and covered positions, and work with their payroll provider to prepare deductions and quarterly wage-and-hour reporting. Initial registration must be completed by an authorized officer of the business; a payroll provider can assist afterward. Employees must receive notice one pay period before deductions begin. The first State Plan contribution payment is due April 30, 2027. Registration, Employee notices, Payment schedule

For Maryland’s racing community, early preparation can help protect continuity of horse care while giving employees access to financial support when serious family or health needs arise. Program information and registration are available at Maryland FAMLI, or by calling 410-525-4010.

‍