Quick Hits
- Employers that wish to pursue an EPIP rather than participate in the FAMLI state plan must file a DOI between September 1 and November 15, 2026, in order to be exempt from making contributions to the state plan during the 2027 calendar year seeding period.
- The DOI process requires employer registration through the FAMLI Portal, a consultation with and attestation from a licensed insurance agent, and completion of an online DOI form with submission of the attestation through the portal.
- A DOI is not the same as an EPIP application; even if a DOI is accepted, the employer must still file a separate EPIP application no later than October 1, 2027, for implementation of a private plan at the time benefits commence in January 2028.
- While the process for filing a DOI is not yet fully detailed on the FAMLI website, Ogletree Deakins has obtained clarification from the Maryland FAMLI Division regarding how it will actually work. Here is a step-by-step breakdown of the process as we currently know it.
Step 1: Registering for a FAMLI Employer Account
The employer must register for a FAMLI account through the FAMLI Portal. Registration is now open.
The employer must identify an individual employee to act as its authorized officer. A third-party administrator (TPA) cannot be used for this purpose. The registration process requires the authorized officer to first register with the federal government website, Login.gov, which provides identity verification for individuals that can then be used with various federal and state agencies. The Login.gov registration requires the authorized officer to provide certain personal information, including proof of legal identity. This has been a source of concern for some employers, but it is a mandatory part of the process.
With Login.gov identity verification, along with the employer’s employer identification number (EIN) and contact information, the authorized officer may then register for an employer FAMLI account. Once registered, the authorized officer may grant access to other employees or a TPA who will actually manage parts or the whole of the FAMLI process for the employer (i.e., filing reports, remitting contribution payments, and managing employee leave claims).
Step 2: Consulting With a Licensed Insurance Agent
The employer will need to meet with a licensed insurance agent of its choice, who will walk through a specified agenda of information about FAMLI and private plan requirements. The consultation agenda covers fifteen required items, including escrow requirements, contribution rules, consequences if a private plan is not approved, and quarterly reporting obligations. Following the meeting, the agent will sign a Proof of Private Plan Consultation form, attesting that they have reviewed the agenda with the employer.
This consultation is required even if the employer intends to self-insure rather than purchase a commercial plan. Not all insurance agents will be fully versed in FAMLI, so employers should engage an agent who has at least a working understanding of the program.
Step 3: Uploading the Signed Form and Completing the DOI Online
Once the insurance agent consultation is complete, the employer will upload the signed “Proof of Private Plan Consultation” form through its FAMLI account and complete the DOI online. Note that this functionality is not yet available on the FAMLI Portal.
According to information provided to Ogletree from the FAMLI Division, the DOI itself will be a series of checkboxes that closely mirror the insurance agent consultation form, with two additional questions:
- whether the employer intends to use a commercial plan or self-insure; and
- approximately how many employees will be covered by the plan.
Step 4: Receiving DOI Acceptance Notification
The authorized officer will be notified by email within fifteen days if the DOI has been accepted.
Step 5:Collecting Contributions and Escrow Holding
If the DOI is accepted, the employer will begin collecting contributions starting January 1, 2027, but will not remit them to the state. Instead, the employer must hold the funds in an escrow account, pending submission and approval of an EPIP application.
Notably, if a private plan is not approved by the FAMLI Division before January 1, 2028, the employer will be required to remit to the state an amount equal to all unpaid employer and employee contributions (which should be the same as the funds in the escrow account), plus any interest and penalties for late payment.
Step 6: Filing the EPIP Application
The employer will need to file an EPIP application beginning in late summer 2027, but no later than October 1, 2027. It is critical to understand that the DOI is not the same as an EPIP application. Even if a DOI is accepted, the employer must still separately apply for EPIP approval.
The FAMLI Division will make the EPIP application forms available in the summer of 2027. All DOIs expire December 31, 2027. Failure to submit a private plan application by the October 1, 2027, deadline is grounds for termination of the DOI by the FAMLI Division.
Key Takeaways
The DOI process offers employers a meaningful opportunity to opt out of the state plan during the seeding period, but it requires careful planning and timely action. Employers should consider taking the following steps:
- identifying and preparing an authorized officer, including completing Login.gov identity verification;
- registering immediately through the FAMLI Portal if they have not already done so;
- consulting with a knowledgeable insurance agent well in advance of the November 15, 2026, deadline;
- submitting the DOI and agent consultation form no later than November 15, 2026;
- preparing for escrow obligations beginning January 1, 2027; and
- calendaring the October 1, 2027, EPIP application deadline as a critical follow-up to DOI acceptance.
Ogletree Deakins will provide more information about the EPIP application process once additional details are available from the FAMLI Division. The FAMLI Division has also set up a help center for employers. Employers may reach the FAMLI Customer Care Contact Center at (410) 525-4010 or paid.leave@maryland.gov, Monday through Friday, 8:00 a.m. to 4:00 p.m. ET.
The firm’s Baltimore office and Leaves of Absence/Reasonable Accommodation Practice Group will continue to monitor developments and will provide updates on the Leaves of Absence and Maryland blogs as additional information becomes available.
In addition, the Ogletree Deakins Client Portal provides subscribers with timely updates on state family and medical leave laws, including Maryland’s FAMLI program. Premium-level subscribers have access to comprehensive Law Summaries and updated policies; Snapshots and Updates are complimentary for all registered client users. For more information on the Client Portal or a Client Portal subscription, please email clientportal@ogletree.com.
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