New Maryland Law Requires Employers Give Notice Before Reducing Operations

The Maryland Economic Stabilization Act will require Maryland employers, beginning October 1, 2020, to provide notice before a company conducts a “reduction in operations.” This new law, Senate Bill 780, applies to employers with 50 or more employees.

Under this law, a reduction in operations is defined as either relocating part of the employer’s operation or laying off at least 15 employees or 25% of the workforce (whichever is greater) over a three-month period.

Notice must be provided to the following groups at least 60 days before a reduction in operations:

  • All employees at the workplace who are subject to the reduction
  • Each exclusive representative or bargaining agency that represents employees at the workplace subject to the reduction
  • The Maryland Division of Workforce Development and Adult Learning’s dislocated worker unit
  • All elected officials in the jurisdiction where the workplace is located

In determining employee count, employers should not include those employees who work less than 20 hours on average each week or who have worked for the employer for less than six months in the immediately preceding 12 months. While these employees do not count toward the 50-employee threshold, they are entitled to notice under the law if they are part of the reduction.

impactAction: If you have questions or need assistance complying with this new policy, contact us at or 443-741-3900.