Join your disability, benefits, and leave specialists to learn more about the upcoming Maryland FAMLI program
It’s been a long time coming, but the Maryland Department of Labor is poised to roll out its MD FAMLI paid family and medical leave program with actions starting in a few weeks. All employers must register this fall.
FAMLI contributions will begin with the first payroll run in January 2027 and eligible employees can begin receiving benefits January 2028.
Many Maryland business owners will find that a private plan, or as the law calls it, an Equivalent Private Insurance Plan (EPIP), better meets their needs.
Insurance brokers can help guide their clients through the steps to apply for a private plan and roll the cost savings into a complete ancillary benefits package. That means more commissions for brokers with The DBL Center as your back-office staff.
Register Now For Our Free Webinar on How to Write a Private Plan for MD FAMLI
Our team of experts helps you consolidate reporting through our Broker Dashboard: Net Revenue Tracker. We negotiate the best rates for your clients through our extensive carrier relationships and stay on top of regulatory changes to help your clients stay compliant. You focus on sales and helping your clients fill risk gaps in coverage.
One-Time Only Contribution Exemptions Save Your Clients Thousands of Dollars
By law, a state approved EPIP must provide the same or better benefits and cannot cost an employee more than they would have paid using the state’s public claim administrator. In addition to the potential premium savings inherent in a private plan, your clients can also save on the first year of contributions during the state’s seeding period for the FAMLI Trust.
This can lead to tens of thousands of dollars in savings for employers with $2.5 million or more in payroll and 50+ lives. Even small businesses of 50 or less than save thousands in the first year.
The window to apply for a Declaration of Intent for a private policy for Maryland FAMLI is limited to September 1 through November 15, 2026. Brokers need to start letting their Maryland-based clients know about how they can save money and stay compliant now. Carriers are providing illustrative quotes now to see how the private plan rate compares to the state’s cost.
Phased Roll-Out: What Brokers Need to Know
The Maryland FAMLI program is rolling out in three phases:
- Registration: To build an inventory of all of the employers impacted
- Contributions: To build up the MD FAMLI Trust used to pay benefits
- Claims: Ensuring claim administration and appeals are operational
The first requirement is employer registration. That’s where employers can apply for the DOI to use a private plan. Employers with an approved DOI will receive a contribution exemption for calendar year 2027, which will be a placeholder while the state finalizes the commercial insurance actions built in for phase 3.
Understanding Contribution Rates and First-Year Savings with a Private Plan
The MD FAMLI state run contribution, phase 2, is set at 0.9% up to the Social Security Wage annual cap, which will be published in October 2026.
All employers are asked to begin the FAMLI contribution assessments, however, those with approved DOIs will not be required to send the funds to the state each quarter. Instead, the funds will be held in a special escrow account until the state has approved their private plan summer 2027.
Once the state approves the private plan, the money in escrow will can be returned to the employer’s operating funds or to the employee, if funds were payroll deducted. That means DOI employers don’t have to start paying insurance premiums until January 1, 2028, when the commercially insured policy becomes effective.
Strategic Advantages to a Private Plan
Beyond the cost savings, there are other reasons thousands of employers across the US have switched to a private plan in states that mandate paid family and medical leave.
Maryland employers who write coverage through private carriers using The DBL Center as their insurance wholesaler will also enjoy the following competitive advantages to keep workers happy.
Proactive Support for State Changes
The DBL Center has been a leader in paid family and medical leave since New York launched its trailblazing program in 2018. Members of our team advocate for paid family and medical leave programs across the US and understand what it takes to roll out a successful program.
Compliance can be complicated, but The DBL Center simplifies administration.
Information, including rates, premiums, and timelines, is subject to change as Maryland continues to finalize their rules. We are here to keep you up to date to help your clients stay compliant.
Streamlined Billing, Consolidated Reporting and Dedicated Account Management
Enjoy dedicated account management through The DBL Center team. We provide consolidated reporting with our Broker Dashboard: Net Revenue Tracker, and streamlined billing when you bundle multiple benefits through one carrier.
Better Claims Experience
Private carriers typically offer faster processing. With The DBL Center as your back-office staff, you can also count on dedicated support and responsive service.
Enhanced Employee Support
Employers and employees alike will enjoy hands-on claims guidance, clearer communication, and an array of additional resources that help them navigate disability and paid family leave claims with confidence.
These programs help more than just employees starting families; PFML is a top employer benefit across all demographics, as it promotes a healthier workforce, both physically and emotionally.
What Brokers and Employers Need to Know About FAMLI (Maryland)
Starting in January 2028, employees can take up to 12 weeks leave for the following qualifying reasons:
- For their own serious health condition’
- Caregiver leave for a family member with a serious medical condition,
- Parental leave to prepare for, care for, or bond with a new child joining the family through birth, adoption, foster care or kinship care,
- Employees can also take time off for military exigency, to prepare for a service members deployment or return from deployment, attend service events, arrange childcare, or make financial and legal arrangements prior to a spouse’s deployment, and
- Service member caregiver leave, if the employee’s family member is hurt or become ill due to their military service.
They may qualify for a maximum of 24 weeks if they need child bonding the same benefit year as their own medical leave. As an example, an employee may qualify for 6 weeks for childbirth under Paid Medical Leave (PML) + 12 weeks for child bonding under (Paid Family Leave (PFL).
The weekly paid benefit is a maximum of $1,000 on a sliding scale, with workers receiving between 52% and 90% of their weekly wages. (See the chart below for details).
Employers contribute 0.45% of the 0.9% total FAMLI contribution and fund the other half through employee payroll deductions. Premiums are due to the state on a quarterly basis.
Employers who choose a private plan may opt to self-fund an escrow account or take employee contributions from payroll. If the commercially insured private plan is approved, the employer must return any employee contributions, since they won’t be needed for payments to the state.
MD FAMLI is a mandatory benefit for employers with more than one employee working in Maryland. This includes employers in other states with remote workers in Maryland.
Sole proprietors, LLCs, S-corps and C-corps where the owner is the only employee may opt in to the program.
PFML vs. FMLA Laws – Maryland Employee Rights
MD FAMLI allows for up to 24 weeks paid and job protected leave. It works concurrently with the federal Family Medical Leave Act (FMLA), which protects jobs for up to 12 weeks when employees take leave for eligible reasons.
Next Steps
Want to learn exactly how to help your clients switch to a private FAMLI plan in Maryland before it’s too late?
Register here for our upcoming free webinar.
FAQs
Does Maryland have paid maternity leave?
Maryland’s current Parental Leave Act (PLA) applies to employers with 15-49 employees. It is not paid and fills the gap for smaller MD businesses who are not covered under federal FMLA. It is different than MD FAMLI, which will offer paid and job protected leave. MD FAMLI goes into effect January 1, 2028.
What is Maryland Paid Family and Medical leave?
Maryland’s paid family and medical leave, called MD FAMLI, is a state-run paid leave program that pays employees up to 90% of their average weekly wages for up to 12 weeks for various reasons (maximum of 24 weeks in select combinations), including to care for a family member with a serious health condition, to recover from their own off-the-job illness or injury, and to care for a new child within the first year of birth, adoption, or foster care.
What is the Maryland Paid Family Leave effective date for premium payments?
The first premiums for MD FAMLI will start January 1, 2027, and paid to the state each quarter-first one due end of April. Employers can, instead, apply for an Equivalent Private Insurance Plan (EPIP) to receive a contribution exemption worth up to tens of thousands of dollars, depending on company size. Contact The DBL Center to learn the advantages of a private plan and get started now.
