The rollout to Maryland’s Family and Medical Leave Insurance (FAMLI) program has been a bit tortured at this point. The most recent update came in May 2025, when Governor Wes Moore signed a bill modifying the program’s start date, delaying the start of contributions from July 1, 2025, until January 1, 2027.

Under FAMLI, workers will receive job protection and be able to take time away from work to care for themselves or a family member and still be paid up to $1,000 a week for up to 12 weeks. Like unemployment insurance, FAMLI is a state-run insurance program, with both employers and workers making contributions to a fund administered by the State. Unlike unemployment insurance, FAMLI also provides self-insured and commercially insured options, which will be the first decision employers must make.

Why is this program back on our radar? Just last week, the Maryland Department of Labor published proposed regulations for the program in the Maryland Register, along with a new FAQ on its website. What is some of the new information gleaned from these regulations?

• ‍Guidelines on Private Insurance Application: Previous FAQs lacked the specificity we now have on private or self-insured options. The updated guidance states only employers with 50 or more employees can apply to be self-insured as a matter of right (although the leave package still will need to be approved by the FAMLI Division); smaller employers may apply for a self-insured plan if they have a FAMLI-compliance plan in place by July 31, 2026.
• ‍Fees for Commercial and Self-Insured Plans: The State announced a fee for employers applying for commercial plans, ranging from $100 to $1,000 depending upon employer size. There is a $1,000 application fee for all self-insured plans regardless of size. These fees are paid annually.
• ‍Leave for Childbirth and Bonding. The FAQs make explicit a question that is sure to cause a few headaches for employers going into January 2028: What happens if an employee gives birth (or has a foster or adopted child placed with them) in 2027? From the guidance: “If a baby was born on November 1, 2027, the parent(s) would be eligible for 12 weeks of FAMLI leave between January 3, 2028, and November 1, 2028, when the baby turns 1.” Employers will need to be cognizant of this and may want to adjust leave policies accordingly going into 2027.
• ‍Shortened Response Time: New guidance states employers will have five (5) business days to respond after notification that an employee filed a claim. Employers knew it would be a short turn-around time to respond to the state, but we now have confirmation it will be a one-week period.
• ‍Contribution Rate Announcement Schedule: Beginning in November 2027, each November the Maryland DOL will announce the following year’s rate, capped at 1.2% of wages. For the first contribution rate, in 2027, the rate will be 0.9%.

We will keep you informed as more guidance is issued about this program – still distant, but with some deadlines starting to creep up on the horizon.