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 officially moved past the FAMLI planning stage. In July I discussed employers’ choices when it comes to which type of FAMLI plan to choose; in August I focused on how small businesses can prepare to absorb FAMLI’s effect. As September rolls around, employers should now be taking action to ensure compliance.

September 1 has come and gone. Now what?

• Every Maryland company with at least one employee must now register with the State. There is no small-employer exception.
• Fortunately, registration itself is not particularly complicated. It can easily be done online.
• One snag for some is that the initial registration must be completed by an “Authorized Officer.” The State defines such a person as anyone “who is legally permitted to act in an official capacity on behalf of an employer.” Think c-suite: owner, president, CEO, CFO.
• The best advice here is to simply register. There is no cognizable advantage to putting this off any longer.

Where does my choice of plan come into play?

• Registration automatically places an employer into the State Plan.
• If your company will be using a third-party administrator, that authorization comes after the initial registration. Do not simply assume your payroll provider is taking care of this.
• If your company is planning on using a private plan, it has through November 15, 2026, to submit a “Declaration of Intent” if it wants to avoid remitting State Plan contributions during 2027 (which is one of the big insurance company sales pushes to employers).

Is there anything I should do between now and January 1?

• At the risk of spoiling next month’s post, the primary thing to focus on after registering will be policy updates.
• There will be rights employers will want to preserve and choices it will need to make with respect to payment of leave, but those decisions neither have to be made nor communicated quite yet.

What should I expect to come January 1?

• For State plans, payroll withholding starts with the first pay period in January 2027, with the first quarterly reporting and payment obligations coming in April 2027.
• If your company submits a Declaration of Intent to use a private plan and that DOI is accepted, withholding will start according to the terms of that plan.  

If you have any questions on FAMLI, the registration process, or how to prepare your workplace, contact an RKW employment attorney.

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