Maryland Issues recent Paid Family & Medical Regulations

July 2026 

Tony R. Nelson, Jr., Benefits Compliance Specialist

Maryland employers received important updates regarding the state’s Time to Care Act of 2022 as the state finalized implementing regulations and revised the program’s rollout timeline. Although the delayed effective date gives employers more time to prepare for the implementation of the law, businesses should use this time to review their payroll systems, leave policies, employee communications, and determine whether participating in the state’s plan or operating a private plan makes the most sense for their organization. For more information, click here.

When will Maryland’s FAMLI program start

Effective dates for Maryland’s paid family and medical leave insurance (“FAMLI”) program have been revised. Instead of starting on January 1, 2026, as previously announced, the new dates are:

• September 1, 2026 – November 15, 2026: Declaration of Intent (DOI) filing window:
  • Employers must submit a DOI to the Maryland Department of Labor during this window if they intend to pursue an approved private plan.
• January 1, 2027: Payroll contributions are required.
• January 3, 2028: Latest date for benefits to become available.

As a result of this delay, the state will have more time to get the program administration up and running, and employers will have more time to understand their obligations and ensure they are prepared to comply.

Details from Maryland’s final FAMLI program regulations

The recently published final rule addresses many of the logistics involved with implementing the Time to Care Act, including:

• Employer posting and notice requirements.
• Payroll contribution and reporting requirements.
• Private plan application process and approval requirements.
• Rules for employee eligibility and administering benefits.
• Coordination with employer leave policies and other leave laws.
• Extensive information about employers’ equivalent private insurance plans (“EPIPs”).

Public vs. private plan considerations

In Maryland, employers can choose to participate in Maryland’s public plan or seek approval for a private plan.

Public Plan

• Maryland’s program is administered by the State of Maryland.
• Employers will pay required contributions to the state.
• The state will handle claims and pay benefits.
• For more information, click here.

Private Plan (EPIP)

• Private plans must offer benefits that are equal to, or greater than, the state’s program.
• Private plans must be approved by the state.
• Private plans will typically be administered by the employer.
• While private plans offer more flexibility for employers, they also require more oversight.
• Employers should weigh the costs and responsibilities of creating a private plan before the contribution deadline arrives.
• For more information, click here.

Employers considering a private plan should begin evaluating costs, administrative responsibilities, and implementation timelines well before contribution requirements begin.

Employer action items

Although contributions have been delayed, employers should begin preparing now by taking the following steps:

• Update leave policies.
• Decide if your company is better suited for a public plan or private plan.
• Speak with your payroll provider about upcoming contribution mandates.
• Stay tuned for additional guidance from the Maryland Department of Labor.
• Develop a communications plan to share with employees before deductions start.

Employer scenario example: Understanding the financial impact

Scenario: ABC Manufacturing has 75 Maryland employees with $6 million in annual Maryland covered payroll. Because the company has fifteen or more employees, beginning January 1, 2027, it will be required to contribute 0.45% of covered wages to Maryland’s FAMLI program and may withhold an additional 0.45% of employees’ wages, for a combined contribution rate of 0.90%.

Based on its payroll, ABC Manufacturing estimates annual state plan contributions of approximately:

• Employer contribution: $27,000
• Employee contributions (through payroll deductions): $27,000
• Total annual contributions: $54,000 (before applying the Social Security wage base)

As a result, HR and Finance begin evaluating whether an approved private plan could provide comparable or enhanced benefits at a lower overall cost while integrating with the company’s existing paid parental leave and short-term disability programs. Because employers interested in a private plan must file a Declaration of Intent between September 1 and November 15, 2026, waiting too long to evaluate options could result in participating in the state plan by default and missing an opportunity to reduce long-term costs or streamline leave administration.

Takeaway: Estimating projected payroll contributions early allows employers to make an informed decision between the public and private plan, to budget for upcoming costs, and to avoid last-minute implementation challenges.

Additional information and resources

• Maryland.gov: Paid Family and Medical Leave