Paid Medical Leave in Maryland is coming. Is your workplace ready? Throughout the remainder of the year, keep tuned to this website for Tony Herman’s insights into the decisions companies will have to make, day one concerns, and issues on the horizon, as Maryland employers (and employees) go into this brave new world.

We have written extensively at RKW about the upcoming Family and Medical Leave Insurance (FAMLI) Program in Maryland. As you hopefully are aware, payroll deductions for the Program begin on January 1, 2027, and benefits first become available for employee use on January 1, 2028.

All of our prior articles discussed the Program in more unsettled terms – regulations were still being promulgated, the implementation of the Program was repeatedly delayed, it wasn’t time to act yet, etc. However, employers are now at the point where FAMLI and the decisions related to it should occupy more of a front-row seat.

The first decision employers need to grapple with is as big picture as it gets: Do we stay in the State Plan, or do we pursue a private plan?

This coming fall, employers will begin registering online with the FAMLI Division. Employers that register will be automatically enrolled in the State Plan unless they pursue a private option. To enroll in the private option, employers must file a Declaration of Intent to the FAMLI Division between September 1, 2026, and November 15, 2026.

So what’s the difference between these two options, and which makes more sense for your business?

For many employers (and in particular small businesses), the State Plan is the right answer. Compliance is easier, and there are no third party fees involved. The rules for FAMLI are set; the contribution rate is known. Employers obviously will still have their obligations – both to employees and in their reporting to the State – but by using the State Plan, employers do not need to build a separate FAMLI structure and then prove to the State that it meets every requirement.

However, there are undoubtedly some employers that will prefer going the private route. Private plans can be either commercial or self-insured (self-insurance is available only to employers with 50+ Maryland employees), but, in either case, they must provide benefits to employees that are the same as or better than the State Plan. The main benefit to employers by going with a private plan is flexibility. Particularly for larger employers that already have strong paid leave or disability programs, it may make more sense to fold FAMLI’s requirements into that existing structure rather than layer on a separate state-run process. However, employers can’t be lulled into thinking private plans are “set it and forget it.” They still must submit quarterly wage and hour reports, quarterly claims data, and have the same recordkeeping obligations.

Which plan makes sense for your business? Contact an RKW employment attorney to discuss, and keep on the lookout for more information about FAMLI.

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