Maryland Law AlertAugust 05, 2020Maryland Requires Notice Before Reducing Operations
Effective October 1, 2020, the Maryland Economic Stabilization Act, which applies to employers with 50 or more employees, will require notice before a company conducts a “reduction in operations.”
A reduction in operations means either relocating part of the employer’s operation or laying off at least 15 employees or 25% of the workforce (whichever is greater) over a three-month period. For example, an employer with 100 employees would need to provide appropriate notice only if laying off 25 or more employees, whereas an employer with 50 employees would need to provide notice if they were laying off 15 or more employees, but not if they were only laying off 14 (28%).
Notice must be provided to the following groups at least 60 days before a reduction in operations:
- All employees at the workplace who are subject to the reduction
- Each exclusive representative or bargaining agency that represents employees at the workplace subject to the reduction
- The Maryland Division of Workforce Development and Adult Learning’s dislocated worker unit
- All elected officials in the jurisdiction where the workplace is located
This notice must contain all of the following information:
- Name and address of the workplace where the reduction is expected to occur;
- Name, telephone number, and email address of a workplace supervisory employee as a contact for seeking further information;
- Explanation as to whether the reduction is expected to be permanent or temporary and whether the workplace is expected to shut down; and
- Expected date when the reduction will begin.