• Maryland Law Alert

    • Share:
    August 05, 2020
    Maryland 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
    In determining employee count, employers should not include those who work less than 20 hours on average each week or who have worked for the employer for less than six months in the immediately preceding 12 months. While these employees do not count toward the 50-employee threshold, they are entitled to notice under the law if they are part of the reduction.

    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.