Get an overview of the Maryland labor laws small businesses should know when hiring, and updates on employment laws that could impact your business.
Keep up to date with important changes to state and local employment laws in Maryland.
On April 25, 2024, Governor Moore signed into law a new set of pay transparency requirements for all Maryland employers, which will take effect on October 1, 2024. The Wage Range Transparency Act imposes new requirements on all Maryland employers, regardless of size. With these changes, Maryland will join a growing number of other states that have enacted similar pay transparency laws.
Maryland has passed a new law legalizing the use of recreational marijuana for adults 21 and older. Employers should continue to monitor updates and are encouraged to review their current policies and testing procedures in anticipation of this upcoming law.
The Maryland Fair Employment Practices Act expanded the definition of ‘harassment’ and ‘sexual harassment’ to indicate that unwelcome and offensive conduct does not need to be deemed ‘severe’ or ‘pervasive’ to qualify as harassment in various situations. Those situations include submission to conduct that is made a condition of employment or is the basis for employment decisions, or behavior that unreasonably creates an abusive or hostile work environment. Employers are encouraged to review their harassment policies to ensure there are no references to ‘pervasive or severe’ standards, as well as inform people managers to recognize and respond to behavior that may be construed as harassment.
Maryland recently signed into law SB 828, which made changes to several portions of the state’s Family and Medical Leave Insurance (FAMLI) program, including the implementation dates. Covered employers will now be required to remit premiums and report relevant information to the state beginning on October 1, 2024. Accordingly, eligible employees will not be able to claim benefits until January 1, 2026.
Maryland employers with 15 or more employees are now required to provide reasonable accommodations for job applicants with disabilities, unless the accommodations impose an undue hardship on the employer. Previously, the state law only required employers to provide accommodations to employees.
In early April, the Maryland General Assembly passed the Family and Medical Leave Insurance Program (also known as the Time to Care Act of 2022 SB 275), which will provide eligible employees with 12 weeks of job-protected paid family and medical leave (or up to 24 weeks in certain situations) for various qualifying reasons. Beginning October 1, 2023, employees and employers with 15 or more employees will be required to contribute to the Maryland Family and Medical Insurance Fund through a payroll tax. Benefits will be available for eligible Maryland employees beginning January 1, 2025.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.