With key deadlines approaching under Maryland’s Family and Medical Leave Insurance (FAMLI) program, counties face important decisions about how to manage the new paid leave requirements.
Beginning January 1, 2027, employers participating in the State Plan must begin payroll withholding and contributions at the state-set rate of 0.9% of payroll. Counties seeking to pursue a private plan instead must submit a Declaration of Intent (DOI) to the Maryland Department of Labor by November 15, 2026.
To help counties navigate their options, MACo has prepared a Frequently Asked Questions document on some private plan options. The resource outlines immediate next steps, key deadlines, and available options for counties considering alternatives to the State Plan.
A new affordable private-plan option is also available. American Fidelity, a MACo Endorsement Partner that already provides other benefits to many Maryland counties, has committed to offering its private Family Leave plan to MACo member counties at the state-set rate of 0.9% of payroll, with no additional administrative fees. This offering provides counties with another option amid challenges in the private insurance market.
Importantly, submitting a DOI does not commit a county to a private plan. Counties can continue evaluating their options after submission, although choosing the State Plan later would mean owing contributions retroactively, along with interest and penalties. The formal private-plan application deadline for employers with an approved DOI is October 1, 2027.
Counties considering a private plan should act now. Immediate steps include registering as an employer in the FAMLI system, completing the required private-plan consultation, and submitting a DOI by November 15. A final decision on the private-plan administrator or insurer is not required at this stage.
Other helpful links:
MD Department of Labor: Understand your plan.
You’ve Decided on a Plan for FAMLI. Now What?
Deep dive on Maryland’s FAMLI private-plan option.
Stay tuned to Conduit Street for more information.
