Beginning on October, 1, 2020, Maryland employers are required to give their employees 60 days advance notice prior to enacting a “reduction in operations.” The new requirements apply to employers with at least 50 employees who operate an industrial, commercial or business enterprise in Maryland.
These requirements are in the recently amended Maryland Economic Stabilization Act.
Reduction in operations that trigger the new employer responsibilities include the closure of operations affecting the greater of 25% of the employers’ workforce or 15 employees, and relocation of operations. In addition to the required notice, employers must continue to provide affected employees with health, pension, severance and/or other benefits. The Maryland Secretary of Labor is still determining what those benefits must include.
Employers who fail to comply with the notice requirement are subject to fines of $10,000 per day (with a maximum of $600,000).
The attorneys at Lebau & Neuworth are highly experienced with handling employment related cases. If you believe you need legal assistance with an employment issue, contact us at (410) 296-3030 or lebauneuworth.com/contact-us.
