Maryland’s New Layoff Notice Law Takes Effect, Employers Prepare

The Maryland Department of Labor (MDOL) has finalized regulations for the Maryland Economic Stabilization Act, known as the “Maryland mini-WARN Act,” which will take effect on October 13, 2025. This law requires employers to provide advance notice of mass layoffs or reductions in force (RIFs) under specific circumstances. While the notice provisions became mandatory in 2020, enforcement had been delayed until the regulations were finalized. With these new rules now in place, employers must prepare for compliance.

Key Provisions of the Maryland Mini-WARN Act

Under this legislation, employers with at least fifty employees who have operated an industrial, commercial, or business enterprise in Maryland for over a year must provide a written notice sixty days in advance of any mass layoffs or significant operational reductions. The law is triggered if there is a reduction that results in either a cut of at least 25 percent of the workforce or the layoff of at least fifteen employees.

The definition of a “workplace” encompasses permanent offices or facilities in Maryland but excludes construction sites and temporary workspaces. Importantly, the act does not apply if the workforce reduction results solely from a labor dispute, occurs at construction sites, or is due to industry-specific seasonal factors.

Employers must ensure that written notices are distributed to all employees at the affected workplace, including part-time and recently hired staff, as well as to any union representatives. The notice must include details such as the name and address of the affected workplace, contact information for a company official, the nature of the reduction, and its expected start date.

Compliance and Enforcement Measures

Employers who fail to comply with the new requirements may face civil penalties of up to $10,000 per day. The MDOL has the authority to issue an order compelling compliance, which must outline the specifics of the alleged violation and any proposed penalties. Employers have the right to contest these penalties within fifteen business days.

The final regulations align closely with the previous proposed regulations released on June 14, 2025. They include provisions for telework and remote workers, defining a “remote worker” as an employee operating under the same Employer Identification Number (EIN) who has a permanent arrangement to work at an alternative site.

The MDOL has also updated its outreach mechanisms for employers facing reductions. The department will now initiate contact through modern communication methods rather than solely by phone, though confidentiality considerations remain complex.

Employers should assess their workforce plans, particularly regarding remote and teleworking populations. They must also evaluate potential triggers for the notice requirements and prepare communications accordingly to align with the new regulations.

In conclusion, the Maryland mini-WARN Act introduces critical requirements for employers in the state. As the implementation date approaches, businesses must navigate these regulations carefully to avoid penalties and ensure compliance.