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Maryland Economic Stabilization Act (“Mini Warn Law”)

Effective October 1, 2020, Maryland employers who employee 50 or more individuals will be required to comply with updated mandatory provisions of the Maryland Economic Stabilization Act (“Mini Warn Law”).  The Mini Warn Law applies to reductions in work force of at least twenty-five percent (25%) or 15 employees within any three month period.  It also applies if an employer relocates any part of an employer’s operations to another site.  Employers are required to provide employees subject to the reduction, Maryland state agencies including the DLLR, and all elected officials in the jurisdiction in which the workplace is located with at least 60 days prior written notice of any such reduction in workforce.  The notice shall include the name and address of the workplace, the name, phone number and email address of supervisory employee to contact for further information, a statement as to whether the reduction is temporary or permanent and the date the reduction shall begin.  The failure of any employer to provide the required notice provides for civil penalties of up to $10,000 per day, but does not expressly provide a private cause of action. There are no exceptions provided in the Mini Warn Law for unforeseen business circumstances, such as pandemic or financial hardships.

Notwithstanding the October 1, 2020 effective date of the updated law, the DLLR has indicated until it has had the opportunity to develop regulations to implement the Mini Warn Law it will not be enforcing the full implementation of the law.  The DLLR anticipates full implementation to occur on or about April 1, 2021.

 

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