Maryland Labor Law

1. Introduction

The state of Maryland, located in the Mid-Atlantic region of the United States, encompasses a variety of landscapes from its sandy dunes bordering the Atlantic Ocean to forested mountains in its western regions. As one of the country's thirteen original colonies, Maryland boasts a rich history and a diverse culture. But beyond its geographical and historical significance, Maryland plays a crucial role in the field of employment law, offering workers a unique set of protections and entitlements.

Maryland's state laws cover a broad spectrum of labor issues including minimum wage, overtime, leave entitlements, and workplace safety, among other things. These regulations are designed to ensure fair treatment for employees and to foster a productive and secure working environment. This article aims to explore the various facets of Maryland's state law as they pertain to employment, providing a comprehensive understanding of the rights and responsibilities of both employers and employees within the "Old Line State".

As labor laws continue to evolve, Maryland has often been at the forefront of implementing progressive policies that aim to balance the needs of the workforce with the goals of businesses. The ongoing dialogue between advocacy groups, the business community, government entities, and the legal system ensures that Maryland's employment laws remain responsive to changing economic conditions and social priorities. With this context in mind, let’s delve into the detailed aspects of Maryland’s state employment laws as outlined in the table of contents.

2. Minimum Wage Laws

In the state of Maryland, minimum wage laws are designed to provide a baseline level of income for workers in various industries. These laws are periodically updated to reflect the economic climate and cost of living. As of the most recent updates:

• The standard minimum wage in Maryland is $15 per hour as of January 1, 2024, for companies with 15 or more employees.
• For businesses with fewer than 15 employees, the minimum wage is slightly lower, set at $15.50 per hour.

Additionally, the state of Maryland recognizes a separate minimum wage rate for tipped employees such as waitstaff in restaurants, provided their combined tips and hourly wage meet or exceed the standard minimum wage. For these workers, employers are required to pay a minimum cash wage of $3.63 per hour, with the expectation that tips will cover the difference to reach the standard minimum wage.

• If an employee’s tips plus the tip credit wage do not equal the state's standard minimum wage, the employer must make up the difference.

For younger workers and those in their first 90 days of employment, Maryland allows a training wage which is 85% of the state minimum wage. This concession aims to encourage employers to hire inexperienced workers by temporarily reducing wage costs.

It's important for employees and employers alike to be aware that certain counties within Maryland have established their own minimum wage rates higher than the state standard. For example, Montgomery County has a minimum wage of $14.00 per hour for large employers, which surpasses the state-level minimum wage. Thus, companies and workers should check the regulations that apply specifically to the county in which they operate or work.

Exemptions to Maryland's minimum wage laws include certain types of workers, such as those employed in agriculture, those under the age of 16 working less than 20 hours per week, and employees at amusement or recreational establishments that operate seasonally. These specific exceptions are delineated in Maryland law and should be consulted for detailed applicability.

3. Overtime Regulations

Maryland's overtime regulations ensure that employees who work more than the standard 40-hour workweek are fairly compensated for the extra time they commit to their jobs. Here are the key points regarding overtime in Maryland:

• Employers are required to pay non-exempt employees at a rate of one and one-half times the employee's regular hourly wage for hours worked in excess of 40 hours in a workweek.
• Overtime is typically not required for hours worked beyond a normal workday unless it exceeds the 40-hour workweek threshold.
• Certain employees are exempt from overtime pay, including those in administrative, executive, or professional roles, outside sales, certain agricultural workers, and employees of certain seasonal amusement or recreational businesses.
• Employers in specific sectors such as gas service stations, restaurants, and hotels may also be exempt or have different requirements under Maryland law.
• Under Maryland labor laws, employers are not permitted to require employees to work more than six days in a seven-day week without their consent, although there are exceptions for certain industries.

These overtime rules are governed by both state and federal labor laws, with the Fair Labor Standards Act (FLSA) establishing the baseline for overtime eligibility at the federal level. However, Maryland's additional regulations can provide further protection or specify exemptions, making it essential for employers to be well-versed in both sets of laws.

Employers who violate overtime regulations may face penalties, including paying back wages owed to the employee and potentially additional damages. Employees who believe their employer has not complied with overtime laws can file a claim with the Maryland Department of Labor.

Proper record-keeping of hours worked is imperative for both employers and employees to ensure compliance with overtime regulations. Employers are required to keep accurate records for each non-exempt worker, which includes details of the hours worked each day, total hours worked each workweek, and the basis on which the employee's wages are paid.

Lastly, if there is any uncertainty about overtime policy or an individual's eligibility for overtime pay, it is advisable to consult with the Maryland Department of Labor or a legal professional who specializes in employment law.

4. Vacation Leave

In Maryland, there are no state laws requiring private sector employers to provide paid or unpaid vacation leave to their employees. However, when an employer chooses to offer vacation leave, the terms of the leave are typically outlined in the company's policy or employee handbook. Despite the absence of state-mandated vacation, many employers recognize the importance of vacation time for employee health and morale. Therefore, vacation policies are commonly established at the discretion of the employer.

• Vacation leave accrual systems, if offered by the employer, are generally based on factors such as length of employment or hours worked.
• Some employers may implement a "use-it-or-lose-it" policy, where employees must use their vacation by a certain date or risk forfeiting it; however, such policies must be clearly communicated to the employees in advance.
• Upon termination of employment, Maryland law does not require employers to pay out accrued vacation to employees unless the employer's established policy specifically states otherwise.

Since Maryland does not govern private sector vacation leave through state statute, the details surrounding vacation leave policies, including accrual rates, carryover, and notice requirements, are largely left to the discretion of the employer. It is important for both employers and employees to thoroughly understand and agree upon the vacation leave policy to prevent misunderstandings or disputes.

It is recommended that both parties maintain clear documentation of the vacation leave policy and ensure records are kept of leave accrued and taken by each employee. If an employer offers vacation leave, adherence to the organization's stated policy is crucial to avoid potential legal issues.

For those seeking guidance on best practices regarding vacation leave, the Maryland Department of Labor can be a resource. While they may not enforce regulations regarding vacation leave, they do provide information and can help clarify common concerns about employee leave entitlements.

5. Sick Leave

Maryland's Healthy Working Families Act requires employers with 15 or more employees to provide paid sick leave to their workers. This law aims to ensure that employees do not have to choose between their health and their income. Here are the primary points of Maryland's sick leave laws:

• Employees earn one hour of paid sick leave for every 30 hours worked, up to a maximum of 40 hours per year.
• Workers can use this leave for their own health needs or to take care of a family member. This includes illness, injury, medical appointments, and preventive care.
• The law also covers absences due to domestic violence, sexual assault, or stalking that require legal or medical attention.
• Employers are allowed to ask for verification if an employee uses more than two consecutive scheduled shifts of sick leave.
• Employees are entitled to carry over up to 40 hours of unused sick leave into the next year, but employers may cap the use of accrued sick leave to 64 hours per year.
• Employers may offer a lump-sum of sick leave at the beginning of the year as an alternative to the accrual system, often referred to as "front-loading."
• Employers with fewer than 15 employees must provide unpaid sick leave under the same conditions.
• New employees can be required to wait 106 calendar days before using their accrued paid sick leave.

The law applies to most employees who work at least 12 hours a week. Independent contractors, some agricultural workers, and certain other categories of workers are exempt from this requirement.

Important to note is that these provisions represent the state minimum requirements. Employers may offer more generous sick leave benefits at their discretion. Employees are encouraged to familiarize themselves with their specific employer’s policy for details regarding accrual rates, usage limitations, and any additional benefits that may be provided.

Noncompliance with the Maryland Healthy Working Families Act can result in penalties for employers, including paying the employee for claimed sick leave and potentially additional amounts as financial penalties. To ensure compliance, it's critical for employers to maintain accurate records of hours worked, leave taken, and leave balances for each employee.

Employees who believe their rights under the Healthy Working Families Act have been violated can file a complaint with the Maryland Department of Labor. The department is responsible for enforcing the state's sick leave policies and can provide assistance to both employers and employees regarding the interpretation and application of the law.

6. Holiday Leave

In Maryland, employers are not required by state law to provide employees with holiday leave, either paid or unpaid. Private employers have the freedom to determine their own policies regarding holiday leave for their workforce. This is consistent with federal employment laws, which also do not mandate private employers to offer holiday leave or pay for time not worked, such as holidays.

• Employers may choose to close their business on certain holidays and give employees time off, either paid or unpaid.
• For those businesses that remain open on holidays, employers may offer holiday pay—often at a higher rate—or compensation in the form of time off.
• Some companies in Maryland offer a set number of holidays each year during which employees receive paid leave, including major federal holidays like Thanksgiving, Christmas, and Independence Day.
• Employers who choose to provide holiday benefits often outline these policies in their employee handbook or employment contracts.
• The State of Maryland observes several legal holidays where state government offices are closed; however, private employers are not obligated to follow suit.

The decision to offer holiday leave and pay is largely dependent on the employer's industry, business needs, and company policy. Some sectors, such as retail, healthcare, and emergency services, may require employees to work on holidays due to the nature of their work.

When holiday leave is offered by an employer, it is important for both the employer and employee to have a clear understanding of the policy. Employees should review their employment contract or company handbook for specifics regarding eligibility, compensation, and any applicable requirements or restrictions concerning holiday leave.

For employees working in a unionized environment, holiday leave and pay may be addressed within collective bargaining agreements. In such cases, the terms of the agreement would apply.

While Maryland does not impose specific regulations on holiday leave for private employers, it's important for businesses to consistently apply their holiday policies to all eligible employees to avoid potential allegations of unfair treatment or discrimination.

Although there is no requirement for private employers to observe holiday leave, many recognize the value in offering this benefit to employees. It can play a significant role in attracting and retaining staff, as well as maintaining high morale and workforce satisfaction.

7. Breaks

In Maryland, state law mandates certain breaks for employees, especially when it comes to minors and the provision of meal periods for all employees. Understanding these laws helps both employers and employees ensure that legal requirements are met and worker rights are protected.

• Employees who work a shift of more than 6 hours are entitled to a 30-minute meal period. However, this can be unpaid if the employee is completely relieved from duty, and if the break is not less than 20 minutes, it must be paid.
• The meal period may be waived by mutual consent of the employer and the employee.
• Employers are not required to provide coffee or smoking breaks, but if they do allow for short breaks (usually lasting less than 20 minutes), federal law dictates that these be paid.
• Special rules apply to retail establishments: Employees are entitled to a non-working shift break of at least 15 consecutive minutes for 4-6 consecutive hours of work, or 30 consecutive minutes for a shift of 6-8 hours, provided they do not waive this right.
• For minors under the age of 18, Maryland labor laws require an employer to provide a 30-minute break for every 5 consecutive hours of work.

It is important to note that while Maryland provides these minimal protections around meal periods, no specific state law requires rest breaks beyond those afforded to minors. These conditions set by state law work in conjunction with the Fair Labor Standards Act (FLSA) on the federal level, which does not mandate meal or rest breaks but does regulate the compensation for these periods when they are provided.

Employers are recommended to establish clear policies regarding breaks and meal periods and communicate these to their employees. While they have some flexibility around how they implement break times, consistency and compliance with state laws are key to maintaining lawful employment practices.

In the absence of more specific state provisions, many Maryland employers choose to follow best practice guidelines for breaks, even when not legally required to do so, recognizing that regular breaks can improve employee productivity and well-being.

If employment disputes arise regarding breaks, employees can seek recourse through the Maryland Department of Labor, which provides information and assistance in addressing workplace concerns. Employers found to be in violation of break time regulations may be subject to penalties and will be required to make adjustments to comply with the law.

Ultimately, while Maryland labor laws offer certain protections for meal breaks specifically, they afford employers significant leeway to structure other types of breaks, encouraging a mutually beneficial arrangement that supports both the needs of the business and the health of its employees.

8. Employment Termination Laws

The State of Maryland has specific laws regarding the termination of employment, designed to protect both employees and employers. Understanding these laws is crucial for ensuring that the process of ending employment is handled legally and fairly.

• Employment in Maryland is generally considered "at will," which means that an employer can terminate an employee at any time, for any reason, or for no reason at all, provided it is not for an illegal reason.
• An illegal reason would include terminations based on discrimination, retaliation, whistleblowing, or other protected activities under federal and state laws.
• However, if there is a written contract or union agreement that provides specific terms for job security, those terms must be honored, potentially limiting at-will termination.
• Employers are not required to provide notice of termination or severance pay unless stipulated by company policy or an employment contract.
• Maryland law requires final payment of wages to terminated employees by the next scheduled payday.
• When it comes to mass layoffs, the federal Worker Adjustment and Retraining Notification (WARN) Act requires certain employers to provide 60 days' notice of plant closings or mass layoffs; however, Maryland does not have a state-specific WARN law.

Both employees and employers should also be aware of the Consolidated Omnibus Budget Reconciliation Act (COBRA), which provides some employees with the right to continue their health insurance coverage after employment termination.

• In the case of resignation, employees are encouraged, but not required, to provide two weeks' notice to their employers. This is considered a professional courtesy rather than a legal obligation.
• Unemployment benefits may be available for workers who are terminated through no fault of their own. The eligibility for these benefits is determined by the Maryland Department of Labor.
• If an employee believes they have been wrongfully terminated, they may have grounds to file a claim against their employer. Such claims should be reviewed by legal professionals, as they can become complex and require detailed knowledge of employment law.

Employers are advised to maintain clear policies for termination and to document the reasons for individual terminations to defend against potential wrongful termination claims.

It is always recommended that both employers and employees consult with legal counsel familiar with Maryland employment law to ensure compliance with all applicable regulations when handling terminations. By staying informed and following proper protocols, both parties can navigate the termination process with minimal disputes or legal complications.

9. Unemployment Rights

In the state of Maryland, unemployment insurance (UI) provides temporary financial assistance to eligible individuals who have lost their job through no fault of their own and meet the state’s eligibility requirements. The program is administered by the Maryland Department of Labor, through the Division of Unemployment Insurance. The main aim of this program is to provide financial stability to workers during periods of unemployment, ensuring they can meet their basic needs while seeking new employment opportunities.

Eligibility for unemployment benefits in Maryland is determined based on several factors:

• Prior Earnings: Applicants must have earned a minimum amount in wages during the base period, which is typically the first four out of the last five completed calendar quarters before the claim was filed.
• Reason for Unemployment: Individuals must be unemployed due to reasons other than their own fault, such as layoffs or reductions in force.
• Availability: Claimants must be available for and actively seeking new employment.
• Legal Authorization: They must be authorized to work in the US and provide proof of citizenship or non-citizen status.

To maintain eligibility for benefits, recipients are usually required to demonstrate their ongoing efforts to find work by making regular job contacts and recording them as directed by the unemployment office. They must also accept suitable work when offered.

The benefits are calculated based on the claimant’s earnings during the base period. Maryland determines the amount of benefits a person can receive along with the duration they can collect these benefits, which is typically up to 26 weeks under regular circumstances. However, in times of high unemployment or other exceptional situations, extended benefits may become available.

Funding for unemployment insurance in Maryland comes from taxes paid by employers. Employees do not contribute to this fund directly. Employers’ tax rates depend on various factors, including the industry, the company's history of laying off employees, and the overall health of the unemployment insurance trust fund.

Claimants can file for unemployment benefits in Maryland either online or via telephone. The Maryland Department of Labor provides resources and assistance to help individuals understand their rights and responsibilities under the unemployment insurance program, as well as guidance on how to file a claim.

In the event of a dispute or denial of unemployment benefits, claimants have the right to appeal the decision. The appeal process includes a hearing before an administrative law judge, where the claimant and the employer can both present evidence and testimony.

The state of Maryland occasionally updates its unemployment laws and regulations, so it's important for both claimants and employers to stay informed about the latest changes to ensure compliance and understand their rights under the law. Resources are available through the Maryland Department of Labor's website, as well as through various legal aid organizations and workforce development centers throughout the state.

10. Workplace Safety

Workplace safety in Maryland is governed by both state and federal regulations to ensure that employers provide a safe and healthy work environment for employees. The Maryland Occupational Safety and Health (MOSH) is the state agency responsible for enforcing workplace safety laws. MOSH works in tandem with the federal Occupational Safety and Health Administration (OSHA). Below are some of the key aspects of Maryland's workplace safety laws:

• MOSH Standards and Enforcement: Maryland has developed its own state plan approved by OSHA. This plan outlines the standards, rules, and regulations employers must follow to keep workplaces free from recognized hazards. MOSH conducts inspections, investigates complaints, and can issue citations and fines to employers found in violation of these standards.
• Right to Know: Under the Maryland Hazardous Substances Right-to-Know Law, employees have the right to know about hazardous chemicals they may be exposed to at work. Employers are required to maintain and provide access to safety data sheets (SDS) and ensure that hazardous substances are properly labeled.
• Employer Responsibilities: Employers in Maryland are required to provide their employees with a workplace that is free from recognized hazards that could cause death or serious physical harm. They must comply with all applicable MOSH standards, including providing proper training, protective equipment, and tools necessary for safe work performance.
• Employee Rights: Employees have the right to request a MOSH inspection if they believe unsafe conditions or violations exist in their workplace. Employer retaliation for such complaints is illegal under state law. Employees also have the right to receive training regarding workplace safety and health hazards relevant to their job roles.
• Reporting Workplace Injuries: Employers must report any work-related fatalities within eight hours and any in-patient hospitalizations, amputations, or losses of an eye within 24 hours to MOSH. Employers are also required to keep records of work-related injuries and illnesses and post an annual summary of these incidents.
• Workers' Compensation: Maryland law requires employers to provide workers' compensation insurance for their employees. This insurance provides benefits to workers who are injured on the job or develop a work-related illness. It covers medical expenses, lost wages, and rehabilitation costs associated with the injury or illness.
• Training and Education: MOSH offers various programs aimed at improving occupational safety and health knowledge among employers and workers. These programs include consultation services, educational materials, and training courses on safety best practices and compliance assistance.
• Whistleblower Protections: Maryland law protects workers who report violations, unsafe conditions, or refuse to perform work when faced with an unreasonable risk of injury or death. Whistleblowers have recourse if they face discrimination or retaliation from their employer for engaging in activities protected under state workplace safety laws.

Ensuring workplace safety is a top priority in Maryland. Both employers and employees play essential roles in maintaining a safe work environment. By staying informed about their rights and responsibilities under Maryland's safety laws, workers can better protect themselves, and employers can take preventive measures to reduce the risk of accidents and injuries.