According to the Maryland Department of Labor (MDOL), employers must now comply with the Maryland Economic Stabilization Act, which requires employers to provide notice of mass layoffs or reductions in force (RIFs) in certain circumstances. Although the MDOL had previously taken the position that it would not enforce the mandatory notice requirements of this law (commonly referred to as “the Maryland Mini-WARN Act”) until it had issued final regulations, apparently this is no longer the case.
Quick Hits
- Maryland’s Mini-WARN Act requires employers with fifty or more employees to provide sixty days’ notice of mass layoffs or reductions in force impacting the greater of at least 25 percent or fifteen employees.
- The notice provisions of Maryland’s Mini-WARN Act were made mandatory in 2020, but the MDOL previously announced it would not enforce the law until it had issued final regulations.
- Although only proposed regulations have been issued, the MDOL is now taking the position that employers must comply with the act.
Background
Maryland’s Mini-WARN Act, much like the federal Worker Adjustment and Retraining Notification (WARN) Act, requires employers to provide sixty days’ written notice to employees in the event of a mass layoff or significant reduction in operations.
In 2020, the MDOL announced that it would delay enforcement of the act until the regulations were updated to reflect the new mandatory notice provisions. In December 2023, the MDOL released proposed regulations for public comment. Typically, after a comment period, the agency reviews feedback and may revise the regulations before finalizing them. However, in this instance, the MDOL did not issue final regulations but instead released a revised version of the proposed regulations for additional public comment. Paul Burgin prepared comments on behalf of the Maryland Chamber of Commerce, noting areas of confusion and the need for further guidance. The comment period closed on July 14, 2025, and we are now awaiting issuance of the final regulations.
In the meantime, and contrary to its prior public statements, the MDOL began enforcing the law. It recently added “Employment FAQs” to its “Work Adjustment and Retraining Notification (WARN) and Other Dislocation Notices” webpage. One of the Q&As states as follows:…