Paid Family Leave in the Mid-Atlantic: How Maryland Compares to Surrounding States

Maryland’s FAMLI program does not exist in a vacuum. D.C. and Delaware already have active paid leave programs, and Virginia is on the verge of joining them. Pennsylvania’s HB 200 is pending in the Senate, and North Carolina and West Virginia have early-stage proposals. For employers with workers across the region, the compliance footprint is expanding quickly.

For full details on Maryland’s program, see our companion alert: Maryland FAMLI: What Small Employers Need to Know Now.

Key Differences That Matter for Employers

Cost to Employers

Maryland’s 0.9% is the highest rate in the region, but employers can pass up to half of it to employees. D.C.’s 0.75% rate falls entirely on employers with no cost-sharing permitted. For a company paying $1 million in annual wages in each jurisdiction, the minimum employer-borne cost would be:

D.C.: $7,500 (100% employer-funded)
Maryland (15+ employees): $4,500 (if withholding the maximum 0.45% from employees)
Delaware (25+ employees): $4,000 (if withholding the maximum 0.40%)
Virginia (11+ employees): ~$3,600 (estimated, if withholding 50%)

Small Employer Treatment

The four jurisdictions take notably different approaches:

Delaware is the most lenient: employers with fewer than 10 employees are completely exempt.
Virginia exempts the smallest employers (≤10) from the employer share of contributions, though their employees still contribute and receive benefits.69
Maryland and D.C. have no size exemptions. Maryland reduces the rate for employers under 15; D.C. removes job protection for employers under 20 but requires the same payroll tax.

Employee Benefits

Virginia will offer the most generous weekly benefit cap at roughly $1,507, followed by D.C. at $1,190, Maryland at $1,000, and Delaware at $900. Maryland and D.C. have higher wage replacement percentages (90% for lower earners) compared to Virginia and Delaware’s flat 80%.

Maryland is the most generous on leave duration, allowing up to 24 weeks in a single benefit year when medical and bonding leave overlap. Delaware is the most restrictive, capping medical and caregiver leave at 6 weeks each.

Coverage Tests

Each jurisdiction uses a different test to determine which employees are covered:

Maryland: Localized in Maryland per unemployment insurance rules
D.C.: Employer-based (covers employees of DC employers, regardless of where the employee works)
Virginia: State localization framework (regulations forthcoming)
Delaware: Employee earns at least 60% of wages in Delaware

This means a remote employee working from Maryland for a D.C.-based employer could be covered under both Maryland FAMLI and D.C. Universal Paid Leave. Employers with cross-border workers should map each employee’s coverage carefully to avoid both gaps and duplicative contributions.

Reference Table: Enacted Programs at a Glance

Feature	Maryland	D.C.	Virginia	Delaware
Contributions begin	January 1, 2027	Already in effect	April 1, 2028	Already in effect
Benefits available	January 2028	Already in effect	December 1, 2028	Already in effect
Contribution rate	0.9% of wages	0.75% of wages	~0.72% (estimated; VEC to set by Oct. 2027)	0.80% (25+ employees)
Who pays	Shared; up to 50% withheld from employees	100% employer-funded71	Shared; up to 50% withheld from employees	Shared; up to 50% withheld from employees
Max weekly benefit	$1,000	$1,190	~$1,507 (100% of state AWW)	$900
Wage replacement	90% (≤65% SAWW); tiered above	90% (≤150% min wage); 50% above	80% of AWW	80% of AWW
Max leave duration	12 weeks (24 in combined medical + bonding year)	12 weeks (14 for pregnancy + bonding)	12 weeks	12 weeks combined; medical and caregiver capped at 6 weeks each
Small employer rules	No size exemption; <15 employees get reduced rate (0.45%)	No size exemption; <20 employees: no job protection	No size exemption; ≤10 employees: no employer share required	<10 employees: fully exempt; 10-24: parental leave only
Private plan option	Yes	No	Yes	Yes
Eligibility	680 hours in MD over prior 4 quarters	Any DC-covered employee	~$3,000 earned in two highest quarters	12 months with employer + 1,250 hours
Domestic violence leave	No	No	Yes	No

What Multi-State Employers Should Do Now

Inventory your workforce by state. Identify which employees are covered under which program based on each jurisdiction’s localization or coverage test.
Coordinate payroll systems. Each jurisdiction has its own registration portal, contribution rates, wage caps, and reporting deadlines. Confirm that your payroll provider or third-party administrator can handle all applicable programs.
Monitor Pennsylvania. HB 200 cleared the House and may advance in the Senate during the current session.
Align leave policies. Consider whether a single handbook policy can address all applicable programs or whether jurisdiction-specific supplements are needed. The interaction rules (e.g., PTO exhaustion, concurrent leave) differ in each state.
Watch Virginia closely. If Governor Spanberger signs the bill as expected, Virginia employers will have roughly two years before contributions begin but should start planning now.