Maryland has enacted legislation (Senate Bill 780) that amends the Economic Stabilization Act (also known as Mini-WARN) to require Maryland employers with at least 50 employees to provide 60 days' written notice before initiating a reduction in operations. Senate Bill 780 takes effect Oct. 1, 2020.
Reduction in Operations:
Under the law, a reduction in operations includes:
- The relocation of a part of an employer's operation to another existing or proposed site; or
- The shutting down of a workplace or a portion of workplace operations that reduces the number of employees by at least 25 percent or 15 employees, whichever is greater, over any three–month period. For this determination, only employees working 20 or more hours per week on average or for six months or more in the immediately preceding 12 months are considered.
Notice Requirements:
The required notice must include:
- The name and address of the workplace where the reduction is expected to occur;
- The name, telephone number, and email address of a supervisor to contact for more information;
- A statement that explains whether the reduction is expected to be permanent or temporary;
- Whether the workplace is expected to shut down; and
- The expected date when the reduction will begin.
Notice Recipients:
The notice must be provided to:
- All employees at the workplace that is subject to the reduction in operations;
- Collective bargaining representatives;
- All elected officials in the jurisdiction where the reduction is occurring; and
- Maryland Department of Labor's dislocated worker unit.
Mandatory Guidelines:
The Secretary of Labor, in cooperation with the Workforce Development Board, must develop mandatory guidelines for employers faced with a reduction in operations. Prior to Senate Bill 780, the guidelines were voluntary. The mandatory guidelines must include:
- The continuation of benefits that an employer should provide;
- Pursuant to the 60-day-notice requirement, a written notice that an employer expects to terminate employees due to a reduction in operations;
- The specific mechanisms that employers can use to ask for assistance from the state.
Compliance Recommendations:
Maryland employers should review their procedures to ensure compliance with Senate Bill 780. Please contact your dedicated service professional with any questions.