The federal WARN Act requires employers with 100 or more employees to give at least 60 days’ notice before a mass layoff or plant closure. Maryland’s mini-WARN law — formally known as the Economic Stabilization Act — previously contained only voluntary guidelines for employers faced with a reduction in operations. Which would now require industrial, commercial, or … An employer’s failure to comply with the voluntary guidelines would not result in any penalties. The Act mandates written notice to employees, as well as union representatives, elected officials, and the State Dislocated Workers Unit, in the case of a reduction in operations. The Act applies to employers with 50 or more employees that have operated an industrial, commercial, or business enterprise in Maryland for at least 1 year. In addition, the Maryland Economic Stabilization Act provides for the adoption of voluntary guidelines to be followed by employers regarding advance notification of reductions in operations, provision of information on continuation of benefits, and mechanisms for State assistance. Code § 11-301, et seq.) Similar to the federal Worker Adjustment and Retraining Notification Act, Maryland has a law providing for certain notifications to employees in the case of a reduction in operations, although unlike the federal WARN Act, Maryland’s mini-WARN has been voluntary. -Relocating -Shutdown that reduces number of employees by at least 25% or 15 employees, whichever is greater, over any three-month period. Under Maryland’s Mini-WARN, a reduction of at least 25% or 15 employees, whichever is greater triggers the notice. Under Maryland’s Mini-WARN, a reduction of at least 25% or 15 employees, whichever is greater triggers the notice. According to the Amended Act, the guidelines must include information regarding a written notice and the continuation of benefits, such as health care, severance, and pension that an employer implementing a reduction in operations should provide to employees whose employment will be terminated. Before the end of legislative session Maryland lawmakers passed a bill making revisions to Maryland’s Mini-WARN Act. 1823 York Road The Business Law Building Timonium, Maryland 21093. To ensure that Maryland’s WARN protections are responsive to the business climate of the 2020s, it’s critical that in the event that a corporation is liquidated—for example, by a profitable private equity firm—the entity responsible is liable for severance or other remedies if found in violation of the WARN Act. Under Federal WARN, the trigger is set a 33% and 50 employee level. Currently, under the Maryland Economic Stabilization Act, employers are only encouraged to provide 90 days' advance notice of a layoff. The mini-WARN Act also applies to private businesses with 50 or more full time workers in the state (contrasted with federal WARN’s 100 full time employee threshold) and is triggered by a plant closing, mass layoff, relocation or 50% reduction in hours of 25 or more full time workers. Maryland’s Mini-WARN also covers more employers within its scope. MARYLAND'S NEW MINI-WARN ACT TAKES EFFECT OCTOBER 1, 2020 Author Donna M. Glover July 16, 2020 Effective October 1, 2020, employers in Maryland will be required to give advance, written notice of reductions in force – similar to the federal Worker Adjustment Retraining and Notification As discussed below, that all changes during a time when many employers are facing difficult decisions regarding reductions in force, furloughs, and position eliminations. Federal, local, or municipal law may impose additional or different requirements. Result when an employer files for bankruptcy. All elected officials in the jurisdiction where the workplace that is subject to the reduction in operations is located. On Demand Employee Training: Can We Talk? Importantly, the Amended Act does not apply to reductions in operations that result solely from labor disputes; occur in a commercial, industrial, or agricultural enterprise operated by the state or its political subdivisions; occur at construction sites or temporary workplaces; result from seasonal factors that are determined by the Maryland Department of Labor (Maryland DOL) to be customary in the industry; or occur when an employer files for bankruptcy under federal bankruptcy laws. Maryland's version of WARN, the Maryland Economic Stabilization Act, is voluntary and applies to employers in the industrial, commercial, and business industries with 50 or more employees. An “employee” means an individual who works for an employer for an hourly or salary wage or in a managerial or supervisory capacity at least 20 hours per week. Employees who work fewer than an average of 20 hours per week, or who have worked for the employer for less than six months in the immediately preceding 12 months, are not counted for purposes of the 50-employee threshold. An “employee” means an individual who works for an employer for an hourly or salary wage or in a managerial or supervisory capacity at least 20 hours per week. The expected date and time when the reduction in operations will begin. This Q&A addresses notice requirements in cases of plant closings and mass layoffs. Mini-WARN Acts: Maryland by Garrett Wozniak, Kollman & Saucier, P.A., with Practical Law Labor & Employment A Q&A guide to state versions of the federal Worker Adjustment and Retraining Notification (WARN) Act for private employers in Maryland. Quick Hit: Maryland’s mini-WARN act, the Maryland Economic Stabilization Act, will soon require certain employers in the state to provide 60 days’ written notice before implementing a reduction in force. The federal WARN Act requires employers with 100 or more employees to give at least 60 days’ notice before a mass layoff or plant closure. Ann. The federal WARN Act applies to employers with 100 or more employees, rather than 50-employee threshold contained in Maryland’s mini-WARN Act; and The federal WARN Act applies to layoffs of at least 33% of employees or more than 500 employees at one site, as opposed to Maryland’s 25% or 15-employee standard. Employers who may be facing a reduction in operations later this year should be certain to work with their employment counsel and adjust planning to comply with the Amended Act as well as the federal WARN Act, as applicable. Quick Hit: Maryland’s mini-WARN act, the Maryland Economic Stabilization Act, will soon require certain employers in the state to provide 60 days’ written notice before implementing a … Author: David B. Weisenfeld, XpertHR Legal Editor May 27, 2020. Seven states (California, Illinois, Maryland, New Jersey, New York, Tennessee, Wisconsin) have enacted their own layoff notice laws similar to the WARN Act. -Relocating -Shutdown that reduces number of employees by at least 25% or 15 employees, whichever is greater, over any three-month period. Employers must give statutory notice when separating 25 or more employees for the same reason around the same time for a period that is “permanent, indefinite, or expected to exceed seven days.” Harassment, Discrimination, and Retaliation, Maryland Passes Mini-WARN Act Effective October 1, 2020. During the 2020 legislative session, Senate Bill 780 passed into law and amended the … Significant Changes for Maryland Employers ‒ Protective Hairstyles, Wage History and Wage Range Law, Mandatory WARN Requirements and More. Maryland Toughens Mini-WARN Act for Employers. Maryland recently enacted amendments to its Economic Stabilization Act to require that an employer implementing a “reduction in operations” must provide 60 days’ advance notice to employees and others, and also provide continuation of health, pension, severance and/or other benefits to affected employees on terms yet to be developed by the state secretary of labor. The Federal WARN Act applies to employers within 100 or more employees. The expected date when the reduction in operations will begin. Effective October 1, 2020, the Economic Stabilization Act will require employers to provide employees 60 days written notice of a reduction in operations that will result in lay-offs or terminations. 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