Beginning January 2028, the FAMLI program will require employers to provide eligible employees with job-protected leave to care for themselves or a family member, along with salary continuation for up to 12 weeks. Employer contribution requirements were originally scheduled to begin July 1, 2025, with paid leave benefits available starting July 1, 2026. However, due to administrative delays, the implementation timeline has been revised. Under the updated schedule, employer contributions will now begin on January 1, 2027.
The Maryland Department of Labor’s Family and Medical Leave Insurance (FAMLI) Division has proposed new regulations that provide essential detail on the program’s structure, contributions, private plans, and dispute resolution processes. While these regulations are still in the public comment phase, they offer a crucial look at how the FAMLI program will operate.
Key Definitions and Scope
The proposed regulations, under COMAR 09.42.01, define core terms and establish the governing body:
- FAMLI Division: The new regulations officially establish the FAMLI Division within the Maryland Department of Labor to administer the program.
- Covered Employee: An individual must have worked at least 680 hours performing qualified employment located in the State over the four most recently completed calendar quarters preceding the start date of their leave (“anchor date”).
- Expanded Family Member Definition: The regulations clarify the definition of a family member for whom an individual can take leave, including:
- Biological, adopted, foster, or stepchildren, parents, grandparents, grandchildren, and siblings.
- Domestic partners and individuals who stood in loco parentis.
- Serious Health Condition: Defined broadly to include illness, injury, impairment, or physical/mental conditions that require inpatient care or continuing treatment by a licensed health care provider. This includes conditions like pregnancy, chronic conditions (e.g., asthma, diabetes), or conditions requiring multiple treatments.
- Mandated Forms: The Division will mandate the use of approved templates and forms for all aspects of the program, including employer notices, claims, and dispute resolution.
Contribution Clarity for Employers
The rules concerning employer and employee contributions are detailed in COMAR 09.42.02.
- Total Remittance Required: Employers are responsible for remitting 100 percent of contributions due each quarter based on wages up to the Social Security Wage Base.
- Employee Withholding is Optional: An employer may withhold from the pay of an employee an amount up to 50 percent of the total rate of contribution. Employers must provide written notice to all employees of contribution withholding (or any changes) at least one pay period prior to commencement or change.
- Small Employer Relief: Employers with fewer than 15 total employees (calculated annually) are only responsible for remitting 50 percent of the total rate of contribution.
- Failure to Deduct: If an employer fails to make the proper employee deduction, they are considered to have elected to pay the employee’s portion and cannot recoup it on future pay cycles.
Equivalent Private Insurance Plans (EPIPs)
Employers have the option to seek approval for an Equivalent Private Insurance Plan (EPIP) to opt-out of the State plan, provided the plan meets or exceeds the benefits, duration, and conditions of the State plan.
- EPIP Requirements: An EPIP must cover all eligible employees, pay equal to or greater weekly benefits, use Division-prescribed forms, and not impose additional restrictions on leave use. Employer obligations regarding job protection and anti-retaliation still apply.
- Annual Application: Employers must submit an EPIP application annually, at least 90 days before the employer’s current EPIP approval expires.
- Self-Insured Plans: A self-insured EPIP typically requires an employer with 50 or more employees to provide a surety bond and maintain a separate account for employee contributions.
- Temporary Provision (DOI): Employers intending to secure an EPIP may submit a Declaration of Intent (DOI) during a designated submission period (to be announced by the Secretary). An approved DOI exempts the employer from contributions during the seeding period (Jan. 1, 2027—Dec. 31, 2027), provided they collect and hold the funds in an escrow account.
Next Steps for Employers
- Determine Employer Size: Calculate your employee headcount (in-state and out-of-state) to determine if you qualify as a small employer (under 15 employees) for the contribution reduction.
- Monitor for Mandated Templates: Be prepared to use the official FAMLI Division templates and forms for employee notices, claims, and other program requirements once they are released. The Maryland DOL also published a set of Frequently Asked Questions (“FAQs”) covering key topics.
- Evaluate EPIP vs. State Plan: If you plan to use a private plan, begin the process of meeting with carriers and preparing your annual application, or monitor the Division’s announcement for the Declaration of Intent (DOI) submission period.
- Review Withholding Policies: If you elect to withhold the employee’s portion of the contribution (up to 50%), ensure your payroll system can implement the required one pay period advance notice to employees.
- Consider Submitting Public Comments: The deadline for submitting public comments on these proposed regulations is November 17, 2025. Comments may be submitted by emailing famli.policy@maryland.gov.
The Maryland DOL is expected to release additional regulatory updates in the upcoming weeks. HR Works will continue to monitor this topic and provide updates as more information becomes available.
