Maryland employers have some important decisions and deadlines approaching as the state prepares to launch its new Family and Medical Leave Insurance (FAMLI) program. While employees will not begin receiving benefits until 2028, employer responsibilities begin much sooner.

For businesses with employees working in Maryland, now is the time to understand the program, prepare for payroll and reporting requirements, and evaluate whether participating in Maryland’s State Plan, the state-administered FAMLI program funded through employer and employee contributions (The State Plan), or pursuing an approved private plan makes the most sense for your organization.

What Is Maryland FAMLI?

The program is designed to provide eligible Maryland workers with paid, job-protected leave when they need time away from work for certain family or medical reasons.

Beginning January 1, 2028, eligible employees may receive up to 12 weeks of paid leave annually, with benefits of up to $1,000 per week. Qualifying reasons include:

• Welcoming a new child through birth, adoption or foster placement;
• Caring for the employee’s own serious health condition;
• Caring for a family member with a serious health condition; and
• Addressing certain needs related to a family member’s military deployment.

Employees will need to have worked at least 680 hours in a Maryland-based position during the prior 12 months to be eligible for benefits.

Which Employers Are Impacted?

Generally, employers with at least one employee working in a position localized in Maryland will need to participate in FAMLI.

For 2027, the State Plan contribution rate is 0.9% of covered wages, up to the Social Security wage cap. For employers with 15 or more employees, the contribution is split equally between the employer and employee, 0.45% each. Employers with fewer than 15 total employees are not required to make an employer contribution, although they must collect and remit the applicable employee contribution. One important distinction: employer size is based on an organization’s total workforce, including employees outside Maryland, while FAMLI contributions apply to employees working in positions localized in Maryland.

Important Dates to Know

Employers should have the following dates on their radar:

• Fall 2026: Registration with the FAMLI Division of the Maryland Department of Labor by Authorized Officer (identity verification required).
• September 1–November 15, 2026: Employers considering a private plan can submit a Declaration of Intent (DOI). Employers that want to pursue a private plan and potentially avoid remitting 2027 contributions to the State should pay particular attention to this window.
• January 1, 2027: Contributions begin. Employers participating in the State Plan will begin collecting required employee payroll deductions and accruing their employer contributions, if applicable.
• April 30, 2027: First quarterly wage and hour report and contribution payment are due.
• July 2027: Employers will begin providing required FAMLI notices to employees, six months before benefits become available.
• October 1, 2027: Employers that submitted a Declaration of Intent must apply for approval of their private plan by this date.
• January 1, 2028: FAMLI benefits become available to eligible employees.

Could a Private Plan Save Your Business Money?

Employers are not required to obtain FAMLI coverage through Maryland’s State Plan. Businesses may instead pursue an approved commercial insurance plan or, if eligible, a self-insured plan that provides benefits and protections at least equivalent to the State Plan.

For some employers, a private plan could potentially provide cost savings compared with the State Plan. Cost, however, is only one consideration. Employers may also want to compare administration, claims handling, employee experience, integration with existing benefits, and the responsibilities associated with maintaining a private plan.

Private plans are not automatically less expensive, so employers should obtain quotes and compare their options before making a decision.

For employers considering a private plan, timing is important. To avoid remitting contributions to the State during the 2027 seeding period, employers must submit a Declaration of Intent (DOI) between September 1 and November 15, 2026. As part of the DOI process, employers must consult with a licensed insurance agent or other qualifying insurance representative.

Submitting a DOI is the first step toward pursuing a private plan; it is not the private plan application itself. Private plan applications are expected to become available in summer 2027 and must be submitted by October 1, 2027.

For more information on private plan requirements visit the Maryland FAMLI website here.

What Should Employers Do Now?

Even though benefits are more than a year away, employers should begin planning for FAMLI now. This includes identifying which employees will be covered, estimating the potential cost of State Plan contributions, coordinating with payroll providers, and considering how FAMLI will interact with existing leave and disability benefits.

Most importantly, employers interested in a private plan should begin evaluating their options soon so they have enough time to make an informed decision before the November 15 deadline.

For more information refer to the MD FAMLI page at: https://paidleave.maryland.gov/.

By: Juli Canavan