Private Plans

Yes, all employers with at least one employee in Maryland will be required to provide paid family and medical leave. There are no exemptions under state law. Employers can choose between the State Plan, a commercial plan, or a self-insured option.

Yes, private plans may allow employees to take time off for periods less than 4 hours.

All employers with at least one Maryland employee will be required to electronically register with the FAMLI Division. After registering, employers will automatically be enrolled into the State Plan run by the Maryland Department of Labor. The State Plan provides an easy way to be in compliance. Employers do have other options. Employers could seek approval for a commercial or self-insured plan. Commercial and self-insured plans must offer benefits and protections that are the same as or better than the State Plan.

Employers who intend to apply for a private plan in 2027 may submit a Declaration of Intent (DOI) to the FAMLI Division by November 15, 2026. DOI submissions open September 1, 2026. FAMLI anticipates that the private plan application window will open mid-2027.

The Declaration of Intent (DOI) is a document submitted by an employer (between September 1, 2026-November 15, 2026) indicating the employer's intention to apply for a private plan that will provide its employees with coverage equivalent to or better than the State Plan. If an employer's DOI is approved, that employer will not be required to remit contributions to FAMLI during the seeding period. Contributions are still required to be collected and saved in an escrow account. There is a statutory exception to the escrow requirement for certain governmental employers.

Yes. All employers, regardless of plan type, will need to start submitting quarterly wage and hour reports in April 2027.

Employers are not required to submit DOIs. However, employers who do not have approved DOIs will be required to remit contributions to FAMLI during the seeding period, regardless of their intent to apply for a private plan.

Employers who intend to apply for a private plan in 2027 and wish to be exempt from contributions during the seeding period must submit a Declaration of Intent (DOI) between Sept. 1, 2026-Nov. 15, 2026.

No, the DOI only tells FAMLI that an employer intends to offer employees a private plan. Employers will need to apply for a private plan in summer 2027.

**1: [Register with FAMLI](https://account.paidleave.maryland.gov/soft-launch)** - Initial registration must be completed by** [an Authorized Officer](https://paidleave.maryland.gov/employers/understand-employer-registration/)**. **2: [Download and complete Proof of Private Plan Consultation](https://paidleave.maryland.gov/files/proof-of-private-plan-consultation.pdf)** - A licensed insurance agent or other representative of an insurance company in Maryland must complete and sign the form.  **3: Upload the completed Proof of Private Plan Consultation** - Once an Authorized Officer registers, they can upload the Proof of Private Plan Consultation and attest to their understanding of their obligations through their FAMLI account and submit their DOI. - FAMLI won't accept forms that are unreadable, incomplete, or not signed. **4: Receive DOI decision** - A submission confirmation email will be sent to the Authorized Officer’s email address. Only [Authorized Officers](https://paidleave.maryland.gov/employers/understand-employer-registration/) can submit a DOI for an employer. If you are the Authorized Officer for more than one employer, you need to submit a separate Declaration of Intent (DOI) for each EIN.

No, there is no fee.

No, you are not required to offer a private plan if you submit a DOI. The DOI just indicates your intent to apply for a private plan. If you do not apply for a private plan, you will need to remit past due contributions and enroll in the State Plan.

No. Anyone from the employer can meet with the insurance agent or other representative of an insurance company. Important note: the Declaration of Intent must be submitted by an Authorized Officer.

An insurance agent or representative may earn money (called a commission) for selling an insurance product. If you have more questions about commissions, please contact the Maryland Insurance Administration (MIA).

No, Declarations of Intent and related documentation may only be submitted online using your employer profile.

It may take up to 15 business days for your Declaration of Intent to be reviewed.

If you already work with a trusted insurance agent/representative, they should be able to help you find more information about FAMLI compliant private plans. Friends, associates, attorneys, and financial consultants may also be able to refer you to an agent/representative. The Maryland Insurance Administration (MIA) can tell you whether an insurance agent/representative is licensed and in good standing. You can call the MIA at at 410-468-2000 or 800-492-6116 or visit https://www.apps.insurance.maryland.gov/CompanyProducerInfo/ to use the Administration’s online Producer/Agent/Broker Search tool.

Yes. You are required to either collect contributions from your employees and maintain the funds in an escrow account or self-fund the escrow account. (Note: There is a statutory exception to this requirement for certain governmental employers.)

During the seeding period (January 1, 2027-December 31, 2027) employers with an accepted Declaration of Intent must hold all contributions due in an escrow account. The employer is able to collect contributions from their employees or can self-fund the escrow account. There is a statutory exception to this requirement for certain governmental employers. If an employer is approved to use a self-insured private plan, they will be able to use those contributions collected to fund a separate account used solely for FAMLI benefits. If an employer is approved to use a commercial private plan, they must return any contributions collected from employees back to the employees.  If an employer's application to use a private plan is denied or the employer decides to use the State Plan, the contributions held in escrow will be owed to the State.

Contributions are required to be kept in an escrow account until the employer's private plan application is approved.

Yes, you will still be able to apply for a private plan, but you will not be exempt from contributions during the seeding period (January 1, 2027-December 31, 2027).

Yes, FAMLI can terminate a Declaration of Intent for any of the following reasons: - Misuse of employee contributions by the employer; - Failure to hold required funds in escrow after January 1, 2027; - Failure to adhere to FAMLI program requirements; - Excessive withholding of contributions from the pay of employees beyond the amount that would have been withheld under the State plan; - Failure to respond timely to a request for information from the FAMLI Division; - Failure to submit timely quarterly wage and hour reports in 2027; - Failure to submit a private plan application to the FAMLI Division on or before October 1, 2027; or - Denial by the FAMLI Division of a private plan application before January 1, 2028.

Yes. An email will be sent to the person submitting the Declaration of Intent when it is submitted, under review, and accepted.

An employer cannot terminate a DOI once submitted. Language regarding the DOI being irrevocable is include in the Proof of Consultation Form that must be uploaded with the DOI submission.

Employers with 50 or more employees that provide benefits equal to or better than the State Plan will be able to apply to be self-insured. The leave package will need to be approved by the FAMLI Division and meet every element of the FAMLI program. The employer will need to demonstrate the plan is financially solvent. Employers with fewer than 50 employees may apply for a self-insured plan, if they have a FAMLI-compliant plan in place by July 31, 2026.

Commercial plans will be sold by a third party insurance company. The insurance company will review and pay employees' claims. Any employer will be able to purchase a commercial plan. Self-insured plans will be financed directly by employers. Employers who self-insure will review and pay employees' claims. Employers will only be able to apply for a self-insured plan if they have at least 50 employees or they have fewer than 50 employees but their FAMLI-compliant plan was in place by July 31, 2026. Commercial and self-insured plans must be approved by FAMLI and must provide benefits equivalent to or better than the State Plan.

The list of approved commercial plan carriers will be available in mid-2027.

Commercial plans will be available for purchase in mid-2027.

The Maryland Insurance Administration will release a list of approved commercial products in 2027. The list will also be available at paidleave.maryland.gov.

Commercial insurance companies can now give "illustrative rates." Illustrative rates can change and are not guaranteed. The Maryland Insurance Administration will approve final rates in 2027. Those final rates may be higher or lower than the illustrative rate.

Yes. You can meet with an insurance representative to discuss commercial plan options at any time. Please note that the Maryland Insurance Administration will not approve commercial products until summer 2027. If you meet with insurance representatives before then, they can only provide general information about private plan options under the FAMLI program. Any specific information related to a particular product should be considered illustrative. That means the details and costs may change.

In this case, employers with 50 or more total employees can apply for a self-insured private plan. There is one exception: employers with fewer than 50 employees can apply to use a self-insured plan, if they have their own FAMLI-compliant plan in place before July 1, 2026.

Employers with fewer than 50 employees will not be eligible to apply for a self-insured private plan _unless _they already had their own FAMLI-compliant plan in place on or before July 31, 2026 and it has remained continually in effect until the date of application. To determine if your plan already in place on or before July 31, 2026 is FAMLI-compliant, you should review our [published regulations](https://regs.maryland.gov/us/md/exec/comar/09.42) and ensure your current plan meets or exceeds the requirements in the regulations and is provided to all of your covered employees. If, based on that review, you believe the plan meets or exceeds those requirements, you will be able to apply for approval of a self-insured private plan when the applications open in Summer 2027. In the meantime, we recommend you [sign up for our listserv](https://links-1.govdelivery.com/CL0/https:%2F%2Fpublic.govdelivery.com%2Faccounts%2FMDDLLR%2Fsignup%2F39552/1/0100019fcd3ed02e-3512f24d-fdf3-4947-aaf9-db87d3fcf59a-000000/S2DNQJkbXhub_2cjv-1Fq-2zvPFIQfcZdQKJuWsDXbw=452) to stay up to date and review the [Understand your plan](https://paidleave.maryland.gov/employers/understand-your-plan/) page on our website for information about getting ready to apply, including FAMLI's Declaration of Intent process.

An employer will need to submit: - an application; - their family and medical leave insurance policy that meets or exceeds the benefits of the State Plan; and - proof of solvency (ie a surety bond). An employer must also establish a separate account to be used solely for FAMLI contributions and benefits. Employers who submit a Declaration of Intent to be self-insured before the application becomes available must meet with an insurance provider about available commercial private plans and obtain their signature.

First, it's important to know that FAMLI does not regulate surety bond issuers. That said we can provide some information: 1. A reasonable premium estimate for the surety bond is 1% to 4% of the bond amount. 2. In some situations, employers may be told they have a collateral requirement in addition to the premium estimate. The collateral requirement will depend on the surety bond issuer's review of the employer's financial ability to meet its FAMLI benefit obligations. If the ability to meet the benefit is questionable, a collateral requirement such as an escrow account or letter of credit may be necessary to guarantee the benefit is paid.   If you have additional questions we recommend you contact surety bond issuers.

An employer with an approved self-insured plan can withhold contributions from employees, but it is not a requirement. The amount withheld from employees cannot be more than the employees' contribution rate under the State Plan. If an employer withholds contributions from employees, the employer must maintain FAMLI-related funds in a separate account used solely for FAMLI benefits.

Yes. If the employer plans to collect contributions from employees, they will not be able to withhold more than they would in the State Plan. The employer must maintain a separate account used only for FAMLI benefits.

Employers will not be able to withhold more than 50% of the State Plan contribution rate from employees. For example, if the State Plan contribution rate is 0.9%, employers with a private plan would not be able to withhold more than 0.45% of an employee's wages.

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.

The fee depends on payroll size. The size is determined by the number of employees localized in Maryland at the time the application is submitted. The fee scale is: $100.00 for an employer with 1-14 employees $250.00 for an employer with 15-49 employees $500.00 for an employer with 50-199 employees $600.00 for an employer with 200-499 employees $750.00 for an employer with 500-999 employees $1,000.00 for an employer with 1000 or more employees The application fee for a self-insured plan is $1,000 regardless of employer size. Application fees are paid annually.

When employers register with FAMLI, they will enter their federal Employer Identification Number (EIN). FAMLI will only allow one registration per EIN. All employees reported under the EIN must be enrolled in the same plan.

No. Whichever plan an employer chooses must cover all employees.

Once an employer’s private plan is approved they will not need to make contributions to the State Plan, but the employer will still be required to provide quarterly wage and hour reports.

Yes, all employers are required to electronically submit wage and hour reports every quarter.

Employers can seek input from employees when making a plan selection but it is not required by law.

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.

Employers with private plans will be required to send claims data each quarter.

Employers with approved private plans are required to keep the following records for at least 5 years: - Applications submitted and outcomes (approved/denied); - Benefits paid; - Reconsideration requests and outcomes; - Wage and hour reports; and - Employee contributions received.

While the Department of Labor sets the contribution rate for the State Plan, private plans will set their own rates. The Maryland Insurance Administration (MIA) regulates insurance products. Employees cannot be charged more in a private plan than they would be through the State Plan.​

Yes, private plans can charge employers a higher contribution rate than the State Plan. However, employers participating in a private plan cannot, in turn, charge their employees a higher rate than the State Plan.

Employees will file a claim for benefits through their current employer's plan.

Yes. The FAMLI 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.

Yes, but the timing of a decision to change plans is important. Employers with a private plan are expected to remain in that plan for at least a year. After a year, the employer may apply to change private plans or join the State Plan. After review by the Department, approved changes will take effect at the beginning of the next quarter. There can be no gap in coverage and employees will immediately be able to file claims through the new plan. There are specific provisions for employers who submit a Declaration of Intent (DOI). The following rules apply to employers whose (1) DOIs are accepted, (2) private plan applications are approved, and (3) private plans are terminated (either involuntarily or voluntarily) any time during calendar years 2028 or 2029. **If an employer leaves their private plan to join the State Plan between January 1, 2028 and December 31, 2028:** they will owe contributions from which they were exempted (and correspondingly held in escrow) as a result of the accepted DOI plus interest. So, contributions that would have been paid to FAMLI for the period of January 1, 2027 to the day their private plan was approved. There may be additional financial penalties. **If an employer leaves their private plan to join the State Plan between January 1, 2029 and December 31, 2029:** they will owe half the contributions from which they were exempted (and correspondingly held in escrow) as a result of the accepted DOI plus interest. So, contributions that would have been paid to FAMLI for the period of January 1, 2027 to the day their private plan was approved. There may be additional financial penalties.

Employers with an approved private plan must stay in that plan for one year. If they decide to switch to the State Plan after that year, they will need to begin collecting and remitting contributions to the State Plan. Employees will immediately be able to file claims through the State Plan.

Yes.

No. If an employer switches from a private plan to the State Plan, there is no waiting period before employees will be able to access benefits.

Yes. Anyone can access FAMLI's Customer Care Contact Center with questions by calling (410) 525-4010 or emailing [paid.leave@maryland.gov](mailto:paid.leave@maryland.gov).