On October 17th, the Maryland Department of Labor (“DOL”) released guidance on the state's paid Family and Medical Leave Insurance ("FAMLI") program.

Background

Starting January 2028, the FAMLI program requires that employers provide eligible employees with job-protected leave to care for themselves or a family member and 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.  Due to administrative delays, however, the implementation timeline has been delayed.  Under the revised schedule:

• Employer contributions will begin on January 1, 2027.  Employers may withhold up to 50% of the total contribution rate from employees’ paychecks.
• Benefits will be available to eligible employees starting January 3, 2028. 

There are three ways that employers can comply with the FAMLI program:

• Participate in the state plan run by the Maryland DOL – easiest approach;
• Purchase a commercial plan under which a third-party insurer processes and pays claims; or
• Self-insure an Equivalent Private Insurance Plan (“EPIP”) under which the employer processes and pays claims. 

The Maryland DOL must approve commercial plans and EPIPs, and the commercial plan or EPIP must provide benefits equivalent to or better than the state plan.

Regulatory Updates

The Maryland DOL has released Chapters 1, 2, 3, and 5 of the proposed FAMLI regulations found here. These chapters address definitions, contributions, EPIPs, and dispute resolution.  The Maryland DOL is expected to release Chapter 4 in the coming weeks.

Updated FAQs Released

The Maryland DOL also published a set of Frequently Asked Questions (“FAQs”) covering the following key topics:

• General questions
• Contributions
• Claims
• Commercial plans and EPIPs
• Employer action items

Employer Action Items

Employers should begin preparing for the upcoming requirements by:

• Selecting an approach for complying with FAMLI requirements – state plan, commercial plan, or EPIP.
• Reviewing current leave policies for alignment with FAMLI requirements.
• Evaluating how it will coordinate FAMLI with other employer-provided leave programs.
• Educating human resources, leave-of-absence teams, and employees about the FAMLI program’s scope and timelines.

We recommend continuing to monitor FAMLI developments closely as additional regulations and guidance are released.

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