New Maryland laws took effect October 1

Following are some of the significant pieces of legislation passed by the Maryland General Assembly last spring that take effect on October 1, 2020.

Maryland’s ‘mini-WARN Act’ now has sharp teeth

House Bill (HB) 1018/Senate Bill (SB) 780 amends the Maryland Economic Stabilization Act, which previously set forth certain voluntary notification procedures for employers that plan to implement reductions in operations. Under the previous law, employers were “encouraged,” but not required, to provide 90-days advance notice of a layoff. There were no specific penalties if an employer failed to take any action.

The new legislation, which takes effect October 1, dramatically changes what a Maryland employer must do in the event of a reduction in operations. In addition to creating specific requirements to provide notification to all affected employees, their unions, elected officials, and the state, the new law also provides significant penalties in the event a Maryland employer ignores the new responsibilities. The Maryland Department of Labor (MDOL) may assess a civil penalty of up to $10,000 for each day an employer fails to comply with the new law. Let’s take a closer look at this significant legislation.