Focus: Maryland, Virginia & Washington, D.C.
For today’s employers, managing the wide range of work and family responsibilities is a constant balancing act. That’s why paid leave is becoming a key component of benefits offered by many U.S. employers, including government contractors (GovCon). It’s also why some states have developed Paid Family and Medical Leave programs (PFML).
What are state PFML programs?
Paid Family and Medical Leave programs are mandatory and provide income replacement when employees are out of work for qualifying family* or medical reasons. Not only do they expand eligibility beyond what the federal Family and Medical Leave Act (FMLA) provides, they ensure workers can take needed time away from work without losing their entire paycheck. Many PFML programs also include job protection, often requiring government contractors and other employers to maintain health insurance benefits and restore employees to the same or an equivalent position when leave ends.
*Many states define family to include in-laws, grandparents, grandchildren, siblings, or close personal relationships.
How do Paid Family and Medical Leave programs work?
Although each state structures its PFML program differently, most operate as state‑run social insurance funded through payroll contributions. For GovCons and other employers, participation is mandatory wherever covered employees are performing work, either through the state plan or, where allowed, an equivalent private plan that meets requirements.
Typically, the agency administering Paid Family and Medical Leave collects contributions and pays benefits directly. Some jurisdictions also allow insurance companies or third-party administrators to manage claims. For government contractors, this structure requires planning for shared payroll premiums in pricing, aligning leave administration consistently across contracts and worksites, and determining whether state administration or a compliant private plan offers the best operational fit for a multi‑state workforce.
What are the key features?
State PFML programs share common elements, such as defining eligible leave reasons, establishing qualification criteria based on in‑state employment and wages, specifying the duration and level of wage replacement, and outlining how program premiums are funded. Common features of Paid Family and Medical Leave programs:
Eligibility: Determined by an employee’s recent work and wages in the state, not their residency
Benefit design: Provides partial wage replacement up to a state‑set weekly maximum, usually up to 12 weeks
Funding formula: Varies; can be employer‑only, employee‑only, or shared
Reasons for leave: Employee’s own health condition
- Care of a sick family member
- Parental leave
- Family military reasons
- Safe leave or domestic violence related leave
- Prenatal leave (in some jurisdictions)
Why PFML programs matter for government contractors
Paid Family and Medical Leave programs are becoming increasingly important for GovCons, especially as more states implement state‑specific rules. According to recent numbers from the Bureau of Labor Statistics, only 27% of private sector workers in the United States get paid family leave, and only 43% have access to short-term disability insurance through their workplace, both of which can replace income if they can’t work for a time.
However, PFML programs have been expanding. For government contractors with multi‑state workforces and cost‑plus or fixed‑price contracts, PFML impacts pricing, fringe strategies, compliance, and leave administration. Understanding the rules (and preparing for new programs) helps avoid surprises in bids and contract performance.
PFML in Maryland, Virginia, and District of Columbia
Here’s an overview of three specific PFML programs:
| Maryland | District of Columbia | Virginia | |
|---|---|---|---|
| Program | Maryland FAMLI | DC Universal Paid Leave (UPL) | PFML |
| Status | Established (Delayed) | Active | Pending final enactment |
| Key Dates | Contributions start 1/1/2027 Benefits start by 1/3/2029 | N/A | Contributions start 1/1/2028 Benefits start 1/1/2029 |
| Eligibility Requirements | At least 680 hours worked in Maryland in prior 12 months | Must work for a covered DC employer and meet DC work-time thresholds | To be specified; covered employees under state PFML program |
| Leave Duration | Up to 12 weeks; potential for additional 12 weeks if both bonding and SHC occur in same year | Up to 12 weeks parental, 12 weeks family, 12 weeks medical, plus 2 weeks prenatal (subject to caps) | Proposed; 12 weeks of PFML |
| Max. Benefit | Up to $1,000/week starting 2029 | $1,190/week starting on/after Sept 2025 | Approx. 80% of weekly wage, capped at state average weekly wage |
| Funding | Employer/employee shared premiums; rates pending | 0.75% employer-only payroll tax (quarterly) | Shared employer-employee premiums starting 2028 |
| Covered Leave Reasons | Bonding, own SHC, family SHC, military-related leave | Parental, family, medical, prenatal leave | Bonding, own SHC, family SHC, military-related events |
| Job Protection | Continuation of health benefits; reinstatement (with limited exceptions) | Wage replacement; depends on FMLA/DC FMLA eligibility | Expected to mirror standard state PFML rules (pending) |
| Private Plans | Permitted | Not permitted; program is employer-funded tax plus DC-administered benefits | Voluntary family leave insurance currently allowed; ruling for equivalent private plans is pending |
| Administration | Maryland Department of Labor; outsourced claims administration through private plans | District of Columbia Department of Employment Services (DOES), Office of Paid Family Leave (OPFL) | Virginia Employment Commission (VEC), once enacted |
| More Information | Maryland FAMLI | DC UPL | Virginia State Legislative Information System |
How we help government contractors navigate Paid Family and Medical Leave
The Baldwin Group’s dedicated government contracting team provides specialized guidance to help government contractors understand, implement, and manage Paid Family and Medical Leave requirements across multiple jurisdictions. Our expertise combines regulatory insight, fringe‑benefits strategy, and integrated solutions tailored to the unique demands of the federal contracting environment.
- GovCon‑centric focus: Contractors gain access to our team of experts focused exclusively on the federal contracting ecosystem. These specialists deliver deep knowledge in PFML compliance, regulatory requirements, fringe‑rate strategy, and multi‑state benefits administration—helping ensure you receive the guidance you need to manage the realities of government contracting.
- Fringe‑smart benefits strategy: Contractors receive support evaluating state PFML plans and permissible private‑plan alternatives, modeling PFML costs within fringe rates, and aligning PFML with PTO, short‑term disability, and parental leave programs to avoid double‑paying and maintain consistency across worksites.
- Regulatory guidance: State PFML laws change frequently, and contractors benefit from ongoing monitoring and simplified updates from our in‑house compliance team. Complex requirements are translated into practical, easy‑to‑apply guidance that keeps organizations compliant without requiring them to track every regulatory shift themselves.
- Integrated solutions: PFML support is backed by broader capabilities in employee benefits, commercial insurance, retirement, executive compensation, HR technology, and compliance with federal laws. This helps contractors ensure PFML administration aligns with overall benefits strategy, risk management goals, and federal‑law requirements.
As PFML programs continue to expand, understanding the rules, and the implications for pricing, compliance, and workforce management, remains essential for government contractors. Staying ahead of emerging requirements helps reduce operational risk, strengthen contract performance, and position organizations for long‑term success in an evolving regulatory landscape.
Let’s connect to discuss PFML guidance tailored to your needs
This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The content of this document is made available on an “as is” basis, without warranty of any kind. The Baldwin Insurance Group Holdings, LLC (“The Baldwin Group”), its affiliates, and subsidiaries do not guarantee that this information is, or can be relied on for, compliance with any law or regulation, assurance against preventable losses, or freedom from legal liability. This publication is not intended to be legal, underwriting, or any other type of professional advice. The Baldwin Group does not guarantee any particular outcome and makes no commitment to update any information herein or remove any items that are no longer accurate or complete. Furthermore, The Baldwin Group does not assume any liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. Persons requiring advice should always consult an independent adviser.
