Maryland FAMLI: Important Deadlines Are Fast Approaching

Employers with Maryland employees should be aware of several fast-approaching deadlines under Maryland’s Family and Medical Leave Insurance (“FAMLI”) program. While Maryland employees are not eligible to receive FAMLI benefits until January 1, 2028, employers with Maryland employees have compliance obligations that begin now: registering with the State, meeting an imminent deadline for employers considering private plans, and preparing for employee notice and contribution requirements that take effect in the coming weeks. Below is a brief overview of FAMLI and the dates employers with Maryland employees should have on their calendars.

Brief Overview of Maryland FAMLI

FAMLI is a Maryland state-administered paid family and medical leave insurance program. It will provide eligible employees with up to 12 weeks of paid, job-protected leave annually, with benefits of up to $1,000 per week. In certain circumstances, employees may be eligible for up to 24 weeks of FAMLI leave in a single year. Qualifying reasons include the employee’s own serious health condition, caring for a family member with a serious health condition, bonding with a new child, and certain needs related to a family member’s military service. Employees generally become eligible after working at least 680 hours in employment covered by Maryland FAMLI during the four reported calendar quarters preceding their claim or the beginning of their leave, whichever occurs earlier.

Importantly, FAMLI applies to nearly all employers with at least one employee working in Maryland, regardless of size. That includes full-time, part-time, and seasonal employees, as well as out-of-state employers with remote employees working in Maryland.

FAMLI is funded through a combination of employer and employee contributions, which will begin on January 1, 2027. Employers are automatically enrolled in the State plan upon registration, but they may seek approval to provide equivalent or better benefits through a private plan. A private plan may be either a commercial insurance plan or a self-insured plan, with self-insured plans generally limited to employers with at least 50 employees working in Maryland and certain smaller employers with preexisting FAMLI-compliant plans.

Upcoming Deadlines and Employer Action Items

Now: All Maryland Employers Must Register

All covered employers must register through the Maryland FAMLI online portal, regardless of whether they intend to participate in the State plan or pursue a private plan. Registration must be completed by an “Authorized Officer” of the employer, such as an owner, partner, president, CEO, or CFO. Payroll providers, CPAs, and other third-party agents cannot register on an employer’s behalf. They may, however, be authorized to manage FAMLI tasks once registration is complete. Registration requires identity verification and is a prerequisite to filing a Declaration of Intent, so employers should not leave it until the last minute.

November 15, 2026: Declaration of Intent and Proof of Private Plan Consultation

Employers who wish to pursue a private plan and avoid remitting contributions to the State during the 2027 seeding period must submit a Declaration of Intent (“DOI”) by November 15, 2026. Please note that this date falls on a Sunday, so employers considering a private plan should complete their registration, obtain the signed Proof of Private Plan Consultation, and submit their DOI as soon as possible, preferably before the weekend.

To submit a DOI, an employer must:

• complete registration through its Authorized Officer;
• consult with a licensed insurance agent or other representative of an insurance company in Maryland, and obtain a completed and signed Proof of Private Plan Consultation form; and
• upload the form and submit the DOI through the employer’s FAMLI account.

The DOI is not a private plan application, and submitting one does not guarantee approval of a private plan. Once submitted, a DOI cannot be withdrawn. Employers that ultimately do not apply for (or who apply but are not approved for) a private plan must remit past-due contributions to the State and enroll in the State plan. Employers with accepted DOIs must maintain the required contributions in escrow and submit a private plan application by October 1, 2027.

December 2026: Required Notice to Employees Regarding Contributions

Employers must provide employees working in Maryland with written notice of FAMLI contributions at least one pay period before payroll deductions begin in January, 2027. For many employers, this will require distributing notices in December 2026, although the precise timing will depend on the employer’s payroll schedule. The notice must inform employees of FAMLI contributions and the amount, if any, to be withheld from their wages. It is required even if the employer voluntarily chooses to pay the employee share itself. The State has published a Required Employee Notice Template that employers may customize for this purpose.

January 1, 2027: Employer and Employee Contributions Begin

The 2027 State plan contribution rate is 0.9% of covered wages, up to the Social Security wage base.

• Employers with 15 or more employees may withhold up to half of the required contribution (0.45%) from employees’ pay and must contribute the remaining 0.45% themselves.
• Employers with fewer than 15 employees do not pay the employer share, but they must still remit the 0.45% employee share. They may withhold that share from wages or pay it on employees’ behalf. All employees, whether working inside and outside Maryland, count toward the 15-employee threshold.

April 30, 2027: First Quarterly Wage and Hour Reports and Quarterly Contributions Due

Employers on the State plan will remit their first Maryland quarterly contributions and Quarterly Wage and Hour Reports by April 30, 2027. Employers with accepted DOIs will hold contributions in escrow, but they still must file quarterly wage and hour reports on the same schedule as employers in the State plan.

What Should Employers Do Now?

• Confirm whether you have any employees working in Maryland, including remote employees.
• Identify your Authorized Officer and complete registration promptly.
• If a private plan is under consideration, obtain the Proof of Private Plan Consultation and file the DOI no later than November 15, 2026.
• Decide whether to withhold the employee share or cover it, and prepare employee notices for December distribution.
• Coordinate with payroll providers and benefits vendors before the first payroll of 2027.
• Review existing leave and disability programs for coordination with FAMLI before benefits begin in January 2028.

If you have any questions or would like assistance with FAMLI registration, the Declaration of Intent, employee notices, or coordinating FAMLI with your existing leave and disability programs, please reach out to Doug Desmarais (ddesmarais@smithdowney.com) or Kerstin Miller (kmiller@smithdowney.com).