FAMLI Frequently Asked Questions From MD Dept of Labor

The Maryland Department of Labor released an updated version of frequently asked questions (FAQs) on the state’s Family and Medical Leave Insurance (FAMLI) system.

The Maryland Family and Medical Leave Insurance (FAMLI) will begin on July 1, 2026, and ensures that qualified workers in Maryland can take paid time away from work for up to 12 weeks. The Maryland Department of Labor is still implementing FAMLI, which has generated a high volume of questions from the business community, local government, and partners statewide. The Department has not yet released finalized regulations.

Definitions:

  • Employer: anyone who pays a salary or wage to at least one person who works in Maryland. No employers are excluded from FAMLI.
  • Worker: anyone who receives a salary or wage for work done in Maryland. Workers do not include independent contractors or federal government employees.

Relevant FAQs for those who choose a private plan:

8. What reporting requirements will there be? Employers will be responsible for filing quarterly wage and hour reports with the Division. These reports will be the basis for calculating the amount due each quarter. Employers will be required to file these reports, even if they participate in a private plan. The Division will share sample reporting templates.

81. Will the claims process for private plans be the same as the claims process for the State Plan? In general, private plans are required to follow the same process as the State.

84. When can employers begin to apply for a private plan? Private plans are not on the market yet. The Division will release more information about the application process when a market for private plans is established in Maryland.

85. Is there a fee to apply for a private plan? Yes. The fee varies depending on whether an employer applies for a commercial or self-insured plan. The application fee for a commercial plan ranges from $100-$1,000. The exact cost depends on employer size. The application fee for a self-insured plan is $1,000.

88. Who will process workers’ claims, benefits and appeals for employers with a private plan? The administrator of the plan, either the insurance company or the self-insured employer, will handle claims and benefits. Regardless of what plan employers participate in, the State will handle appeals.

91. What information will employers with private plans be required to send to the State and how often? Employers with private plans will be required to send claims data each quarter. Employers can face consequences if they submit incorrect, late, or incomplete data.

92. Does the Department set the cost for private insurance plans? While the Department of Labor sets the contribution rate for the State Plan, private plans will set their own rates. Workers cannot be charged more in a private plan than they would be through the State Plan.

95. Will the Division be able to cancel an employer’s private plan? Yes. The Division will be able to cancel an employer’s private plan if it determines the plan is not meeting the requirements. This is called involuntary termination. Involuntary terminations can result in fees and penalties.

These questions are an updated version of the FAQs first published on the Maryland Department of Labor’s website in January 2024. The Department will continue updating FAQs.

Relevant links:

  • View the questions by topic area (contributions, claims, and private plans) at the bottom of the Employers page.
  • Ask the Maryland Department of Labor questions on FAMLI here.
  • View the complete list of FAQs.