In latest edition of The Wright Toolbox:

• Four New Maryland Laws That Took Effect October 1, 2020 – read now
• Maryland’s Minimum Wage Set to Increase January 1, 2021 – read now

Four New Maryland Laws That Took Effect October 1, 2020

As if employers don’t have enough on their plate to manage with the havoc created by the coronavirus, here is a summary of 4 new laws that took effect on October 1, 2020.  This means that it’s time to update your handbooks, train leadership, and speak to your employment lawyer to avoid legal claims.

Amendments to The Equal Pay For Equal Work Act.

Employers will be required, if asked, to provide a job applicant with the range of compensation related to the position for which they’re applying. Employers cannot ask or require an applicant to provide their compensation history, and cannot retaliate against the applicant for refusing to provide such history or upon requesting the pay scale for the position.

Expansion of “Race” Definition to Protect Against Discrimination on the Basis of Natural and Protective Hairstyles.

The Maryland Commission on Civil Rights enforces Maryland’s human relations laws for companies with 15 or more employees. The law has been amended to expand the definition of race, stating that it “includes traits associated with race, including hair texture, afro hairstyles, and protective hairstyles.” The term “Protective Hairstyle” includes “braids, twists, and locks.”

Threatening and Intimidating Items and Symbols Now a Hate Crime.

Maryland’s Criminal Law Article expanded its hate crime law to state that the act of placing or drawing “an item or a symbol, including an actual or depicted noose or swastika, whether temporary or permanent, on any real or personal property, public or private, without the express permission of the owner, owner’s agent, or lawful occupant of the property, with the intent to threaten or intimidate any person or group of persons” is a hate crime. Employers should be vigilant about removing graffiti and symbols in and around the workplace and protect their employees.

60 Days’ Advance Mandatory Notice of Certain Business Relocations and Layoffs.

Maryland’s Economic Stabilization Act has been amended to require employers to provide 60-days’ advance written notice of operational reductions at businesses with 50 or more employees.  Reductions include the relocations and layoffs affecting the greater of 15 employees or 25% of the workforce over a three-month period. Penalties of up to $10,000 per day may apply if notice is not provided.

For more detailed guidance navigating these changes to your workplace, please contact our Employment & Labor Law Group.

Four New Maryland Laws That Took Effect October 1, 2020

In 2019, Maryland enacted legislation raising the minimum wage. The law set a schedule for increases to the minimum wage from $10.10 per hour to $15 per hour through incremental annual increases beginning January 1, 2020.

When the law was enacted, a procedure was included where the Board of Public Works could suspend the scheduled increase one time, for one year, if seasonally adjusted total employment for the six-month period preceding October 1, 2020 was lower than the seasonally adjusted total employment for the immediately preceding period. Given the severe impact of the pandemic on employment, the seasonally adjusted total employment numbers satisfied this requirement such that the Board of Public Works could suspend the increase in minimum wage scheduled for January 1, 2021 until January 1, 2022. However, citing the pandemic’s other impacts on individuals earning minimum wage, such as increasing grocery prices and other daily expenses, the members of the Board of Public Works declined to suspend the scheduled increase.

As a result, for Maryland employers with 15 or more employees, starting on January 1, 2021, the new minimum wage will be $11.75 per hour. For small businesses, defined as businesses with 14 or fewer employees, the new minimum wage will be $11.60 per hour. For the purposes of the Maryland minimum wage, the number of employees is the total employee headcount and is not based on a calculation of the number of full-time equivalent employees.

All employers must be prepared to implement these wage increases effective January 1, 2021. If you have questions about implementing the new minimum wage for your employees or changes to other employee benefits, please contact our Employment & Labor Law practice group.