FMLA Overview: Maryland’s New FAMLI Program
Executive Summary
Maryland’s new paid family and medical leave mandate is expected to significantly impact employers beginning in 2027. Employers may have the option to explore a private carrier plan instead of funding the state-administered plan, and there is no question that a private plan option may create significant cost savings for many businesses.
As a valued client, Omnia Benefits wants to help you stay informed, prepare for compliance, and understand whether a private carrier option may help your business avoid pre-funding the new state program.
Maryland Paid Family and Medical Leave Questions
This page is organized to help employers quickly understand what paid family and medical leave means, how Maryland’s program may impact their business, and what private plan options may be available.
What is paid family and medical leave?
Paid family and medical leave is a state-mandated program that provides partially paid time off for certain family and medical reasons.
Maryland is launching its new Paid Family and Medical Leave Program starting in January 2027. The mandate will require employers to provide qualifying benefits to all eligible Maryland employees.
What is Maryland’s new FAMLI Program?
Maryland’s new FAMLI Program is the state’s paid family and medical leave mandate. It is intended to provide eligible employees with income support when they need qualifying leave for family or medical reasons.
Eligible Maryland employees may be able to take up to 12 weeks off work and receive up to $1,000 per week in income.
How could this impact Maryland employers in 2027?
Beginning January 1, 2027, employers and employees may need to make contributions into a state-administered fund unless the employer has an approved private plan option.
This makes 2026 an important planning year for Maryland employers that want to review private carrier options before they are locked into the state plan funding process.
What is a private plan?
A private plan is an insured, approved alternative to a state plan. It can meet or exceed the rights, protections, and benefits of the state plan while giving employers flexibility to choose a private carrier solution.
For many employers, the private plan option may be the most important opportunity to access significant cost savings, compare pricing, and avoid pre-funding the state-administered plan.
What Maryland Employers Should Do Now
FAMLI stands for Family and Medical Leave Insurance. Employers should use 2026 to understand the program, evaluate available plan options, and prepare for the decisions and deadlines ahead.
Understand the Requirement
Review how Maryland’s paid family and medical leave mandate may affect your employees, payroll processes, benefits administration, and compliance responsibilities.
Compare Your Options
Consider both the state-administered program and an approved private carrier plan so your business can compare potential costs, administration, and support.
Prepare Before the Deadline
Request information and private plan quotes early enough to make an informed decision before the applicable filing and funding deadlines.
How Will This Impact Your Business in 2027?
Maryland employers may have two general paths to consider as the new paid family and medical leave mandate approaches.
State-Administered Fund
Beginning January 1, 2027, employers and employees will need to make contributions into a state-administered fund.
For employers, this may create new financial, payroll, and compliance obligations that need to be planned for before the program begins.
Private Carrier Option
Between June and October 2026, employers can request quotes from private carriers and may have the option to submit a Letter of Intent to opt out of the state plan.
Once approved, employers may be excluded from funding the state plan and may be able to save the first year’s premium equivalent.
Why employers should review this now
This new mandate will significantly impact Maryland employers. A private plan option may give your business a better opportunity to control cost, avoid unnecessary pre-funding, and prepare before the state plan funding process begins.
The Top Reasons to Consider a Private Plan
Omnia Benefits can help Maryland employers review whether a private carrier option may be a better fit than the state-administered program.
Significant Cost Savings
A private plan option may help employers access significant cost savings compared to the state-administered plan.
No Pre-Funding Required
The private plan option may only require a Letter of Intent by November 15 for implementation by January 1, 2028.
Better Rates
Private plan pricing may be based on your industry SIC, which may provide a more competitive approach for your business.
Employer Experience
The private plan partner currently insures more than 196,000 employers with 2.0 million employees.
PFML Market Strength
The private plan partner ranks number one nationwide in PFML cases sold and in-force policies.
In-Force Premium
The private plan partner ranks number two nationwide in PFML in-force premium.
Maryland FAMLI Program Planning Timeline
Employers should begin reviewing options before the state plan funding deadline arrives.
Review Maryland’s upcoming paid family and medical leave requirements and determine whether a private plan quote makes sense.
Request private carrier quotes and compare options before state plan funding begins.
Submit the required Letter of Intent if choosing a private carrier option.
Employers and employees may begin contributions into the state-administered fund unless approved otherwise.
State Paid Family and Medical Leave Mandates Vary
Employer requirements vary by state. The following thresholds identify the minimum number of employees working in affected states.
1 Employee
Colorado, Connecticut, Maine, Maryland, Massachusetts, Minnesota, and New York.
10 Employees
Delaware.
25 Employees
New Jersey, with an exception for multiple locations.
Get Your Free Quote for a Private Plan Today
Omnia Benefits can help you review the Maryland paid family and medical leave mandate, understand your options, and request a private plan quote before the state plan funding deadline approaches.
Maryland FAMLI Program FAQs
Answers to common employer questions about Maryland’s paid family and medical leave mandate and private plan options.
What does paid family and medical leave mean?
Paid family and medical leave is a state-mandated benefit that provides partially paid time off for certain qualifying family and medical reasons.
Is Maryland launching a paid family and medical leave program?
Yes. Maryland is launching a new Paid Family and Medical Leave Program. It is expected to significantly impact Maryland employers beginning in 2027.
How much leave may eligible Maryland employees receive?
Eligible Maryland employees may be able to take up to 12 weeks off work and receive up to $1,000 per week in income, depending on program rules and eligibility requirements.
What are the two main options for Maryland employers?
Employers may participate in the state-administered fund, or they may explore a private carrier option if the private plan meets state requirements and is approved.
Why might a private plan be attractive to employers?
A private plan may provide competitive pricing, carrier support, and the potential for significant cost savings by helping employers avoid pre-funding the state-administered plan.
When should employers request private plan quotes?
Employers should consider requesting private plan quotes between June and October 2026 so they have time to evaluate options before key deadlines.
What is the November 15 deadline?
November 15, 2026 is the deadline referenced for submitting a Letter of Intent for employers seeking implementation of a private plan option by January 1, 2028.
How should employers contact Omnia Benefits?
Employers should use the Omnia Benefits contact page to request a private plan quote, ask questions, or schedule a consultation.