Anything that you send to anyone at our Firm will not be confidential or privileged unless we have agreed to represent you. Significant Changes for Maryland Employers ‒ Protective Hairstyles, Wage History and Wage Range Law, Mandatory WARN Requirements and More. "Workplace" does not include a construction site or other temporary workplace. The federal WARN Act requires employers with 100 or more employees to give at least 60 days’ notice before a mass layoff or plant closure. Mini-WARN Acts: Maryland by Garrett Wozniak, Kollman & Saucier, P.A., with Practical Law Labor & Employment A Q&A guide to state versions of the federal Worker Adjustment and Retraining Notification (WARN) Act for private employers in Maryland. Kollman & Saucier is proud to display the photography of its partners Frank Kollman and Darrell VanDeusen throughout this website. Which would now require industrial, commercial, or … Maryland employers will soon face new obligations as the state has significantly expanded its mini-Worker Adjustment and Retraining Notification (WARN) Act without including any exception for a health pandemic. 90-day notice when possible -faltering company Occur in a commercial, industrial, or agricultural enterprise operated by the State or its political subdivisions; Occur at construction sites or other temporary workplaces; Result from seasonal factors that are determined by the Department to be customary in the industry; or. Proper planning will help employers to avoid significant penalties and minimize the risk of possible administrative action or litigation. On Demand Employee Training: Can We Talk? Under the Amended Act, once notice obligations are triggered, a covered employer must provide at least 60 days' advance written notice of the reduction in operations to the following: The mandatory written notice must include the following information: Unless any regulations that may be forthcoming provide for exceptions to the 60-day notice requirement, unlike the federal WARN Act, the Amended Act has no unforeseeable business circumstances, natural disaster, or faltering company exceptions to the notice requirements. The federal WARN Act requires employers with 100 or more employees to give at least 60 days’ notice before a mass layoff or plant closure. The Act mandates written notice to employees, as well as union representatives, elected officials, and the State Dislocated Workers Unit, in the case of a reduction in operations. The Amended Act requires the Maryland DOL, in cooperation with the Workforce Development Board, to develop mandatory guidelines for employers facing a reduction in operations. Employers should take notice of these new laws and changes to current laws by educating their staff now in … Ann. The expected date when the reduction in operations will begin. Notice obligations under the Amended Act are triggered when a covered employer implements a "reduction in operations," which is defined as: "Workplace" includes a factory, plant, office, or other facility where employees produce goods or provide services. Ann. Maryland Adds Teeth to State Mini-WARN Law May 19, 2020 Maryland Governor Larry Hogan has announced his decision to allow Senate Bill 780 (New Mini-WARN Law) to become law, resulting in key changes to Maryland’s Economic Stabilization Act. Maryland: Businesses who employ one individual in the state of Maryland must follow Maryland’s “mini-WARN” requirement. Maryland's new mandatory law thus has a lower threshold to trigger notice requirements than the federal WARN Act (i.e., under Maryland mini-WARN law, a reduction of at least 25 percent or 15 employees, whichever is greater, versus 33 percent and 50 employees under federal law). The mini-WARN Act also applies to private businesses with 50 or more full time workers in the state (contrasted with federal WARN’s 100 full time employee threshold) and is triggered by a plant closing, mass layoff, relocation or 50% reduction in hours of 25 or more full time workers. The Federal WARN Act applies to employers within 100 or more employees. Changes to the Maryland “Mini” WARN Act. Effective October 1, 2020, employers in Maryland will be required to give advance, written notice of reductions in force – similar to the federal Worker Adjustment Retraining and Notification (WARN) Act. The General Assembly also amended Maryland’s Economic Stabilization Act (known as a mini-WARN law), which will affect certain employee separation practices. These types of exceptions are especially important now in the midst of the pandemic and the continuing government orders restricting business operations, which are only now beginning to lift and may continue in some fashion for much of this year. Any employer who employs at least 50 employees and has been doing business in Maryland for at least one year. Maryland (MD. The law covers employers with 50 or more employees and that have operated an industrial, commercial, or business enterprise in Maryland for at least one year. Author: David B. Weisenfeld, XpertHR Legal Editor May 27, 2020. 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. Maryland WARN Act In addition to the protection provided by the federal Worker Adjustment and Retraining Notification (WARN) Act, the Maryland Economic Stabilization Act is a voluntary law that applies to industrial, commercial, and business industries in the state. Any employer who employs at least 50 employees and has been doing business in Maryland for at least one year. According to the Amended Act, the guidelines must include information regarding a written notice and the continuation of benefits, such as health care, severance, and pension that an employer implementing a reduction in operations should provide to employees whose employment will be terminated. This Q&A addresses notice requirements in cases of plant closings and mass layoffs. Author: David B. Weisenfeld, XpertHR Legal Editor May 27, 2020. Enter your email address to subscribe to this blog and receive notifications of new posts by email. Employers should carefully review Maryland’s new “mini-WARN” Act with experienced counsel before implementing reductions in force or relocations … Quick Hit: Maryland’s mini-WARN act, the Maryland Economic Stabilization Act, will soon require certain employers in the state to provide 60 days’ written notice before implementing a … If you send this email, you confirm that you have read and understand this notice. Maryland's version of WARN, the Maryland Economic Stabilization Act, is voluntary and applies to employers in the industrial, commercial, and business industries with 50 or more employees. The law will become effective on October 1, 2020. From the beautiful black and white images on each website main page, to each attorney’s individual headshot picture, we are thrilled to be able to showcase and enjoy their impressive talent. Under Maryland’s Mini-WARN, a reduction of at least 25% or 15 employees, whichever is greater triggers the notice. The name and address of the workplace where the reduction of operations is expected to occur; The name, telephone number, and e-mail address of a workplace supervisory employee as a contact for seeking further information; A statement that explains whether the reduction in operations is expected to be permanent or temporary and whether the workplace is expected to shut down; and. Maryland does not recognize unforeseen business requirements or natural disaster as an exception to the 90-day requirement but does allow for shortening by a Maryland employers will soon face new obligations as the state has significantly expanded its mini-Worker Adjustment and Retraining Notification (WARN) Act without including any exception for a health pandemic. Otherwise, an employer must comply with the federal requirements. Maryland: “Maryland's version of WARN, the Maryland Economic Stabilization Act, is voluntary and applies to employers in the industrial, commercial, and business industries with 50 or more employees. Similar to the federal Worker Adjustment and Retraining Notification Act, Maryland has a law providing for certain notifications to employees in the case of a reduction in operations, although unlike the federal WARN Act, Maryland’s mini-WARN has been voluntary. Like the federal Workers Adjustment and Retraining Notification (WARN) Act, Maryland’s mini-WARN law provides for written notifications to employees in cases where an … Maryland’s mini-WARN law — formally known as the Economic Stabilization Act — previously contained only voluntary guidelines for employers faced with a reduction in operations. An “employee” means an individual who works for an employer for an hourly or salary wage or in a managerial or supervisory capacity at least 20 hours per week. The employer's history of prior violations of the Amended Act. Senate Bill 780 takes effect Oct. 1, 2020. This Q&A addresses notice requirements in cases of plant closings and mass layoffs. The Act applies to employers with 50 or more employees that have operated an industrial, commercial, or business enterprise in Maryland for at least 1 year. -Relocating -Shutdown that reduces number of employees by at least 25% or 15 employees, whichever is greater, over any three-month period. The federal WARN Act requires employers with 100 or more employees to give at least 60 days’ notice before a mass layoff or plant closure. Notably, along with the Amended Act, the state has enacted a number of other laws that impact employers operating in Maryland, such as a new salary history ban effective October 1, 2020. Guidance for Restaurants: “Mini-WARN” Acts and COVID-19 Issues* September 25, 2020 The Workers Adjustment and Retraining Notification (WARN) Act is a federal law requiring employers to provide written notice to various state and local government officials, affected Maryland’s “mini” WARN Act, the Maryland Economic Stabilization Act, provided that employers should voluntarily give advance notice of significant layoffs. Maryland recently enacted amendments to its Economic Stabilization Act to require that an employer implementing a "reduction in operations" … In determining the amount of the penalty, the Maryland DOL will consider the following factors: The Amended Act does not address whether employees will have the right to file a lawsuit against their employers (as under the federal WARN Act). Coronavirus (COVID-19): Navigating the Path Ahead, Data Protection, Privacy and Cybersecurity, Government Enforcement and Investigations, Hospitality, Franchising and Distribution, Disaster Recovery and Government Services. Maryland employers wrestling  with the onerous challenges posed by the COVID-19 crisis, will soon have a new legal obligation to meet when reducing their workforces. Employers must give statutory notice when separating 25 or more employees for the same reason around the same time for a period that is “permanent, indefinite, or expected to exceed seven days.” Maryland recently enacted amendments to its Economic Stabilization Act to require that an employer implementing a “reduction in operations” must provide 60 days’ advance notice to employees and others, and also provide continuation of health, pension, severance and/or other benefits to affected employees on terms yet to be developed by the state secretary of labor. Currently, under the Maryland Economic Stabilization Act, employers are only encouraged to provide 90 days' advance notice of a layoff. Maryland Toughens Mini-WARN Act for Employers. The reduction in operations can be either the relocation of part of its operation from one workplace to another existing or proposed site; or the shutting down of a workplace or a portion of its operations that reduces the number of employees by the greater of at least 25% or 15 employees (only counting those included in the definition of employee) over any 3-month period. The New Mini-WARN Law applies to employers with at least 50 employees operating an industrial, commercial, or business enterprise in Maryland for at least one year. Maryland’s “mini” WARN Act, the Maryland Economic Stabilization Act, provided that employers should voluntarily give advance notice of significant layoffs. The Federal WARN Act applies to employers within 100 or more employees. a union); All elected officials in the jurisdiction where the affected workplace is located. 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. Otherwise, an employer must comply with the federal requirements. 90-day notice when possible -faltering company All employees at the workplace that are subject to the reduction in operations, including those working on average less than 20 hours a week and those who have worked less than 6 months during the prior 12-month period; Any representative or bargaining agency representing those employees (i.e. The relocation of part of an employer's operation from one. 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