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Maryland: Despite a Veto, Statewide Ban-the-Box Comes Into Play

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All Maryland Employers with 15+ Employees

EFFECTIVE

February 29, 2020

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Despite being previously vetoed by Governor Hogan, the Criminal Records Screening Act went into effect on February 29, 2020, because of state legislation that overrode the governor’s veto on January 30, 2020. The Act implements statewide ban-the-box provisions, though it does not preempt the more expansive local ordinances already implemented in Baltimore City or Montgomery and Prince George’s Counties.

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Maryland: Noncompete Clauses Banned for Low Wage Workers

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All Employers of MD Employees

EFFECTIVE

October 1, 2019

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As a matter of public policy, SB 328 prohibits employers from including noncompete and conflict of interest provisions in employment contracts for employees earning less than $15 per hour, or $31,200 annually. If a noncompete or conflict of interest provision is found in an employment contract and restricts entry into employment with another employer, or restricts the employee from becoming self-employed in the same or similar business or trade, it shall be deemed null and void.

The bill applies to Maryland employees regardless of whether the contract was executed inside or outside of the State. The new legislation does not apply to employment contracts restricting the use of client lists or other proprietary client-related information.

Action Items

  1. Review the text of the bill here.
  2. Have noncompete and conflict of interest clauses reviewed by legal counsel for compliance with this new law.
  3. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2019 ManagEase

Maryland: New Employment Laws Update

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Employers with MD Employees, as indicated

EFFECTIVE

As indicated

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The Maryland legislature adjourned in April after enacting several employment-related laws, summarized below.

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Maryland: Minimum Wage to Increase to $15 per Hour by 2025

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All Employers with MD Employees

EFFECTIVE

June 1, 2019

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The Maryland legislature recently overrode Governor Hogan’s veto of a minimum wage bill that will increase minimum wage to $15 per hour by 2025, and by 2026 for employers with 14 or less employees. HB 166/SB 280 raises minimum wage to $11 per hour on January 1, 2020, and then by $0.75 each year thereafter until it reaches $15 on January 1, 2025. Small employers will see annual increases of $0.60 each year until July 1, 2026. Workers under 18 years old, down from 20 years, are required to be paid at least 85% of the state minimum wage.

Additionally, employers who take a tip credit for tipped employees must provide employees with a wage statement each pay period showing their effective hourly tip rate “as derived from employer-paid cash wages plus all reported tips for tip credit hours worked each workweek of the pay period.”

Action Items

  1. Update projected budgets to account for increases in minimum wage.
  2. Update payroll processes to account for minimum wage increases.
  3. Update tipped employee wage statements as required.
  4. Look for forthcoming tip credit wage statement regulations from the Commissioner.
  5. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2019 ManagEase

Maryland: New Sexual Harassment Reporting Requirement and Bar To Waiving Rights

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Certain Employers with MD Employees

EFFECTIVE

October 1, 2018, July 1, 2020, and July 1, 2022

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Effective October 1, 2018, the Disclosing Sexual Harassment In The Workplace Act (“Act”) (SB 1010) prohibits all employers from entering into an agreement with an employee that waives the employee’s substantive or procedural right to future claims of sexual harassment or retaliation therefor. Employers also cannot retaliate against employees who refuse to enter into such agreements.

The Act also requires employers with 50 or more Maryland employees to report (1) the number of sexual harassment claims settled, (2) the number of times the employer has paid settlements for sexual harassment allegations against the same employee within the last 10 years of employment, and (3) the number of settlements for sexual harassment claims that included a mutual confidentiality provision. The information must be submitted electronically and includes a place for an employer to describe discipline implemented against employees who have been the subject of sexual harassment allegations. Reporting must occur before July 1, 2020 and again before July 1, 2022.

The Maryland Commission on Civil Rights will publish aggregate data received by employers, and will make individual employer reporting available to the public upon request.

Action Items

  1. Have employment agreements, arbitration agreements, and severance agreements reviewed by legal counsel for updates consistent with the new Act.
  2. Track sexual harassment claims and results for required reporting beginning on July 1, 2020.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2018 ManagEase

Upcoming Minimum Wage Increases

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Certain Employers with Employees in CA, DC, IL, ME, MD, MN, OR

EFFECTIVE

July 1, 2018

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Minimum wage increases typically fall into the beginning or middle of each calendar year, with many states or localities increasing minimum wage rates in July.  Below is a short list of localities with upcoming minimum wage increases effective July 1, 2018.