On March 30, 2026, the Maryland Department of Labor (MDOL) published its final regulations implementing the state’s long-impending Family and Medical Leave Insurance (FAMLI) program, and this—Part III of this three-part series—summarizes the regulations covering Equivalent Private Insurance Plans (EPIPs) and dispute resolution.
Quick Hits
- Starting no later than January 3, 2028, the FAMLI program will provide most Maryland employees with up to twelve weeks of paid leave for certain family and medical reasons, with a possible additional twelve weeks of leave for parental bonding, per application year.
- The program is funded through employer and employee payroll contributions, which will commence on January 1, 2027, and be administered by the MDOL’s FAMLI Division.
- The final regulations detail key definitions, qualifying events, required documentation, benefit calculations, notice requirements, coordination of benefits, overpayment and fraud procedures, equivalent private plan requirements, and a comprehensive dispute resolution process.
Background on the Law and Final Regulations
As discussed in further detail in our article, Part I: Overview of the FAMLI Law, Maryland enacted the FAMLI program in 2022 to provide most employees with up to twelve weeks of paid family and medical leave (plus up to twelve additional weeks for parental leave) within a twelve-month period. After several legislatively imposed delays, employer and employee contributions will commence on January 1, 2027, with benefits to begin no later than January 3, 2028.
The MDOL’s final regulations, effective March 30, 2026, implement the law. They are organized into five chapters—General Provisions, Contributions, Equivalent Private Insurance Plans (EPIPs), Claims, and Dispute Resolution—and largely preserve the proposed regulatory framework. The final regulations can be found in Title 9, Subtitle 42 of the Code of Maryland Regulations, COMAR 09.42.01-.05.
Key provisions of the regulations related to EPIPs and dispute resolution are summarized below. Part I of this series addressed online employer accounts and mandatory notices, while Part II covered the claims process and paid leave entitlements.
Equivalent Private Insurance Plans (EPIPs)
The final regulations set out detailed requirements for EPIPs, which may be self-insured or commercially-insured. An EPIP must cover all employees performing qualified employment, pay benefits to any employee who would be eligible under the state plan, allow leave for all FAMLI purposes, provide leave of equal or longer duration, utilize the state’s mandated forms and notices, and calculate benefits that are equal to or greater than those under the state plan. If an employee does not have the requisite 680 hours of service with the current employer, the employer must confirm hours worked for other employers with the state. An EPIP may not impose additional conditions, restrictions, or barriers beyond those authorized by the state plan. Employee withholdings under an EPIP may not exceed what the employee would contribute under the state plan. An EPIP must establish claims processing, reconsideration, and appeals procedures that meet regulatory requirements and certain recordkeeping and additional reporting requirements. The state maintains oversight of EPIPs, which may include compliance reviews.
An employer wishing to utilize an EPIP is required to submit an EPIP application to the MDOL’s FAMLI Division for approval. The final regulations establish a tiered application fee for commercially insured EPIPs based on employer size, ranging from $100 for employers with one to fourteen employees to $1,000 for those with one thousand or more. There is a flat application fee of $1,000 for self-insured EPIPs. Only employers with fifty or more employees may apply for a self-insured EPIP, unless the employer with fewer than fifty employees has a benefits package that has been in effect since on or before July 31, 2026, and that meets or exceeds FAMLI requirements. Applications must be renewed on an annual basis.
Self-insured EPIPs must obtain a surety bond issued by a certified surety company in an amount equal to one year of expected future benefits. The bond must continue for three years after cancellation or EPIP termination and must be reviewed annually by the Division. Employers must maintain a separate account for employee contributions, from which only benefits may be paid.
The final regulations also set out a declaration-of-intent (DOI) process for employers intending to obtain EPIP approval. During a specified submission period, an employer may file a DOI, which must be approved by the Division. From the effective date of the DOI until an EPIP is approved, employers will be exempt from contributions to the state, but they must collect and hold employer and employee contributions in escrow. If the EPIP is subsequently approved, escrowed employee contributions must either be returned or used to fund a self-insured EPIP; if not, the employer is liable for all unpaid contributions plus any applicable interest and penalties for late payment. DOIs expire on December 31, 2027, unless they are terminated earlier by the Division for certain violations. Employers approved via the DOI process must remain in the EPIP for a minimum of four calendar quarters, and early termination may require repayment of some or all of the exempted contributions.
EPIPs may be voluntarily terminated by the employer. They may also be terminated by the Division for various reasons, including failure to submit required reports or failure to comply with the EPIP requirements.
Dispute Resolution
The final regulations establish a comprehensive dispute resolution framework. An employer whose EPIP application is denied or whose EPIP is involuntarily terminated may file a request for review within ten business days, and the Division must issue a decision within twenty business days.
Claimants may request reconsideration of any claims determinations within thirty days, and the Division or EPIP administrator must issue a decision within ten business days. If the reconsideration is adverse, the claimant may appeal to the Division within thirty days. Hearings must generally be held within thirty days of the appeal filing and are closed to the public. The hearing officer must issue a final written order within ten business days of the conclusion of the hearing. Judicial review is available to parties aggrieved by a final order.
Employers may also request reconsideration and appeal of contribution liability determinations within thirty days. Contribution liability hearings must be held within sixty days of the appeal filing, and hearings on contribution liability are open to the public. The hearing officer must issue a final written order, including any penalties or fees, within ninety days of the conclusion of the hearing. An employer may seek judicial review of the final order.
Next Steps
The final regulations took effect on March 30, 2026. Employers may wish to begin preparing for the contribution obligations beginning January 1, 2027, and for the commencement of benefits no later than January 3, 2028, including evaluating whether to participate in the state plan or pursue EPIP approval. Those interested in filing a DOI should be aware that the Division’s submission period is from September 1, 2026, to November 15, 2026. Please see Part I (online account and mandatory notices) and Part II (the claims process and paid leave entitlements) of this series for further information.
