Update Applicable to:	Effective Date
All employers in Maryland	Pay Contributions: January 1, 2027   Benefits: January 3, 2028

What happened?

On October 17, 2025, the Maryland Department of Labor (MDOL) reissued proposed regulations that have been approved. Therefore, the Family and Medical Leave Insurance (FAMLI) program, which will provide paid leave benefits to eligible workers, will be implemented beginning January 1, 2027.

Overview:

These regulations clarify employer responsibilities, define key terms, and outline options for private plan participation.

Program Overview

• Benefits Start: January 3, 2028.

• Payroll Contributions Begin: January 1, 2027.

• Maximum Benefit: Up to $1,000/week for 12 weeks

• Eligible Reasons for Leave:
  • Serious health condition (self or family)
  • Parental bonding
  • Military deployment-related arrangements

Additional Details:

1. General Provisions (COMAR 09.42.01)

• Key Definitions:
  • Employer: Any business with at least one Maryland employee.
  • Covered Employee: Must have worked 680 hours in the past year.
  • Qualified Employment: Narrowly defined; multi-state rules moved to Contributions section.

• Administration: Managed by MDOL’s FAMLI Division.

• Required Forms: Employers must use approved templates for notices, claims, and disputes.

2. Contributions (COMAR 09.42.02)

• Registration: Employers must create an online account; new employers register within 20 days of first wage payment.

• Contribution Rules:
  • Employers pay 100% of contributions quarterly.
  • May withhold up to 50% from employees (with written notice).
  • Small employers (less than 15 employees) pay only 50% of the total rate.

• Deadlines & Enforcement:
  • Late payments incur interest (1.5%/month) and penalties (up to 2x).
  • Missing reports may trigger audits or wage estimates.
  • Overpayments: Employers have 1 year to request reimbursement; employee share must be returned within 90 days.

3. Equivalent Private Insurance Plans (EPIPs) (COMAR 09.42.03)

• Eligibility:
  • Must match or exceed state benefits.
  • Cannot impose stricter requirements than the state plan.

• Application Process:
  • Submit during announced window; DOI exempts employer from state contributions in 2027.
  • Fees range from $100–$1,000; self-insured plans require a bond.

• Employer Duties:
  • Annual re-application.
  • Maintain separate accounts for employee contributions.
  • Submit quarterly reports.

• Termination:
  • Involuntary: May result in penalties and retroactive contributions.
  • Voluntary: Requires 30-day notice.

• Job Protection: EPIP participation does not exempt employers from reinstatement or anti-retaliation obligations.

4. Dispute Resolution (COMAR 09.42.05)

• Employer Contribution-Liability Appeals:
  • Request reconsideration within 30 days of liability notice.
  • Appeal within 30 days of denial; hearings held within 60 days and open to the public.
  • Employers bear the burden of proof; decisions due within 90 days; judicial review available.

• EPIP Denial/Termination Review: Employers may request review within 10 business days; decisions issued within 20 business days.

• Claimant Appeals:
  • Hearing notice period extended to 15 days.
  • Late evidence allowed if relevant, material, and previously undiscoverable.
  • Claimants must prove the Division or EPIP administrator erred based on available evidence.
  • Final orders issued within 10 business days post-hearing.

• Continuing Employer Concerns:
  • Limited time to respond to initial claims.
  • No employer appeal rights for individual benefit awards.
  • Seven-day bereavement benefit remains after a family member’s death.

Source References

• Maryland Proposed Regulations – Subtitle 42 FAMILY AND MEDICAL LEAVE INSURANCE PROGRAM
• Prior Regulations – Maryland Department of Labor Issues FAMLI Proposed Regulations (VensureHR)

Resources

• Maryland FMLI Employer Resources

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