A number of significant Maryland state employment laws are now in effect (today, October 1st, 2014). These matters include issues of basic leave, discrimination, and compensation policies. Neither business owners, personnel (Human Resources) professionals, nor employees can afford to not be aware of these new employment laws.
I. Fairness for All Marylanders Act of 2014
Md. Code Ann., State Gov’t § 20-101 et seq.
The Fairness for All Marylanders Act ("FAMA") adds gender identity to the list of categories protected against discrimination under the Maryland Human Relations Act, which covers places of public accommodations, employment and housing. Gender identity is defined as “gender-related identity, appearance, expression, or behavior of a person, regardless of the person’s assigned sex at birth, which may be demonstrated by: (1) consistent and uniform assertion of a person’s gender identity; or (2) any other evidence that the gender identity is sincerely held as a part of the person’s core identity.”
The Act permits employers to establish reasonable workplace appearance, grooming and dress standards that are directly related to the nature of the employment, as long as employees are allowed to appear, groom and dress consistent with their gender identity. The Act, however, provides an exception for employment by religious institutions with respect to the performance of work connected with the activities of the religious entity.
As for public accommodations, the Act provides that the prohibition of discrimination on the basis of gender identity does not apply to private spaces at a public facility (such as a restroom or changing room) as long as an equivalent private space is made available for the use of persons whose gender identity is different from their assigned sex at birth.
The Act is effective Oct. 1, 2014.
II. Maryland Parental Leave Act
The Parental Leave Act (PLA) passed by the Maryland General Assembly, applies to smaller employers with between 15-49 employees and requires those companies to provide employees with six weeks of unpaid leave per year for the birth or adoption of a child. This Act is similar to the federal Family and Medical Leave Act ("FMLA") with some exceptions.
In order to be eligible for PLA protection, an employee must have been with the company for at least 12 months, and have worked at least 1,250 hours in the last year, prior to taking leave.
Geography also comes into play: an employee requesting leave must be employed at a Maryland work location at which at least 15 employees operate within a 75-mile radius. If the worksite is within 75 miles of an associated office outside the state, and no more than 49 employees work between the two locations, workers may be covered by the FMLA and PLA simultaneously. In this case, an employee’s PLA and FMLA leaves for the birth of a child would run concurrently, and may also coincide with paid time off.
An employer may require an employee give at least 30 days’ notice for the need for leave. This should not pose a problem for anyone expecting or planning on adopting a child, as dates can be estimated months in advance; but notice is not required in exceptional cases such as a premature birth or an unanticipated adoption. An employer may deny requested leave on the grounds that an employee’s extended absence would cause “substantial and grievous economic injury to [the company’s] operations.”
If an employer violates the PLA, an employee has the right to take private action, but cannot hold supervisors personally liable. The law also allows an employee to seek damages including salary, wages, benefits, and any unaccounted-for compensation, along with the PLA-mandated award of reasonable legal costs and attorney fees.
Small employers should start preparing for PLA immediately: develop a written leave request policy and process; document all requests, denials, and approvals; and instruct all management and supervisory staff on the law—or else your business can face serious liability. [See http://citybizlist.com/article/210170/three-new-maryland-laws-effective-october-1-2014]
III. Maryland Minimum Wage Act of 2014
Md. Code Ann., Lab. & Empl. § 3-401 et seq.
Arguably the most significant development in employment law from this legislative session is the increase to the state minimum wage starting Jan. 1, 2015, eventually reaching $10.10 per hour by July 1, 2018. The increase occurs in five steps over the next four years as follows:
- $8.00 per hour, effective Jan. 1, 2015
- $8.25 per hour, effective July 1, 2015
- $8.75 per hour, effective July 1, 2016
- $9.25 per hour, effective July 1, 2017
- $10.10 per hour, effective July 1, 2018
The Act also increases the penalty against employers for violating the Maryland Wage and Hour Law. Under the law as currently written, an employee may bring an action to recover the difference between the wage actually paid to the employee and the amount required under the law, and a court may award reasonable attorneys’ fees and costs to a successful employee. Effective July 1, 2014, awards for reasonable attorneys’ fees and costs are mandatory (if a claim is successful), as are liquidated damages in an amount equal to the difference between the wage actually paid to the employee and the amount required by law. However, if an employer shows that it acted in good faith and reasonably believed that the wages paid were not less than required, the court can award less or no liquidated damages.
Relatedly, the General Assembly granted the Maryland Commissioner of Labor and Industry the authority to enforce local minimum wage laws. This is important because both Montgomery and Prince George’s counties have passed laws increasing the minimum wage in those counties to $8.40 effective Oct. 1, 2014, $9.55 effective Oct. 1, 2015, $10.75 effective Oct. 1, 2016, and $11.50 effective Oct. 1, 2017. For tipped employees, Prince George’s County’s law follows Maryland law, but the Montgomery County law limits the credit to 50 percent of the minimum wage.
[see, http://www.mcguirewoods.com/LegalAlert/marylandemploymentlaw2014legislaturewrap-up/April 23rd, 2014]
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