Maryland WARN Act
The WARN Act, and state-based WARN Acts, provide employees with time to begin job hunting while giving communities advance notice of changes that could impact the local economy.
Maryland is among the growing number of U.S. states that have adopted state-specific WARN Acts. Employers who operate in multiple states must be familiar with applicable mini-WARN acts because the requirements vary significantly from state to state.
Employers who are considering layoffs are encouraged to pay close attention to and track employees subject to workforce reductions. Most WARN Acts count aggregate losses over a 90-day period, meaning employers could inadvertently hit a threshold without realizing it.
Let’s take a closer look at Maryland’s WARN requirements.
What is the Maryland WARN Act?
Maryland’s Economic Stabilization Act (MD-WARN Act) applies to certain circumstances of mass layoffs or reductions in force. This state-specific regulation offers greater employee protections and considerations than the federal Worker Adjustment and Retraining Notification Act (WARN Act).
Maryland's General Assembly amended the Economic Stabilization Act in 2020 to make the 60-day advance notice requirement mandatory (with a further amendment in 2021), but the Maryland Department of Labor didn't finalize the regulations—or begin actively enforcing them—until October 2025.
As detailed below, MD-WARN creates complex requirements for employers.
What types of employers does MD-WARN affect?
The MD-WARN Act applies to employers with at least 50 employees that have operated an industrial, commercial, or business entity in Maryland for at least a year.
For the purposes of MD-WARN, an “employee” is someone who works for an employer for an hourly or salaried wage or in a managerial and supervisory capacity.” It’s important to note that it does not include “individuals who work less than an average of 20 hours per week or have worked for an employer for less than 6 months in the immediately preceding 12 months.”
When is MD-WARN Act applicable?
MD-WARN is triggered when a company conducts a “reduction in operations.” This is defined as either:
Relocation: The relocation of a part of an employer's operation from an initial workplace to another existing or proposed site that may reduce the total number of employees at the initial workplace by at least 25% or 15 employees, whichever is greater; or
Shutting down: The shutting down of a workplace or a portion of the operations of a workplace that reduces the total number of employees by at least 25% or 15 employees, whichever is greater, over any 3-month period.
When determining applicability, a “workplace” includes “a factory, plant, office or other facility where employees produce goods or provide services,” but it does not include construction sites or temporary workplaces. In the FAQs on the website, the Maryland Department of Labor specifies that, “for remote workers, ‘workplace’ includes the entire State of Maryland, which is considered a single workplace for any remote worker or collection of remote workers.”
Note that the MD-WARN Act also states that “an employee may not be counted in the determination of a reduction in operations if the employee accepts an offer to transfer to any other site of employment within 30 days after being offered the transfer.”
If a reduction in operations results from a sale of part or all of an employer's business, the required notice must be provided by both the seller (on or before the effective date of sale) and the purchaser (after the effective date of sale). The law also provides that “An individual who is an employee of the seller as of the effective date of sale shall be considered an employee of the purchaser immediately after the effective date of sale.”
Are there exceptions to the MD-WARN Act?
Yes. MD-WARN does not apply to workforce reductions caused solely by labor disputes, construction sites, temporary workplaces, industry-specific seasonal factors, or those resulting from bankruptcy.
Employers may also be excused from the 60-day notice requirement if they were actively seeking capital or business to avoid the reduction—or if a natural disaster caused the reduction. Unlike the federal WARN Act, MD-WARN does not include “unforeseeable business circumstances” as an exception to the notice requirement.
In the case of an exception, notice must be given as soon as possible, with an explanation as to what caused the delay.
What is the notice period and who must be warned when MD-WARN is triggered?
MD-WARN specifies that at least 60 days’ written notice should be provided to:
All employees at the workplace that are subject to the reduction in operations;
Each exclusive representative or bargaining agency that represents the employees at the workplace that are subject to the reduction in operations;
Individuals who work less than 20 hours on average each week or have worked for the employer for less than 6 months in the immediately preceding 12 months at the workplace that is subject to the reduction in operations;
The Department of Labor’s Dislocation Services Unit; and
The chief elected official of the political subdivision where the workplace that is subject to the reduction in operations is located; (or if the workplace is located in more than one political subdivision, the chief elected official of the political subdivision to which the employer paid the most taxes for the fiscal year immediately preceding the year in which the reduction in operations occurs).
What information does the MD-WARN notice need to include?
The MD-Mini WARN notice must include the following:
The name and address of the workplace where the reduction of operations is expected to occur;
The name, telephone number, and e-mail address of a company official to contact for further information;
A statement that explains whether the reduction in operations is expected to be permanent or temporary and if the workplace is expected to shut down; and
The expected date when the reduction in operations will begin.
What are the penalties if an employer does not adhere to the MD-WARN Act?
If an employer does not abide by MD-WARN, Maryland’s Secretary of Labor “shall issue an order compelling compliance” AND, at their discretion, can assess a civil penalty of up to $10,000 per day for each day that an employer violated the law. When determining the penalties, variables include the magnitude of the violation, the business’s size, the employer’s good faith, and any record of past labor misconduct.
How does Onwards HR help employers comply with WARN?
Maryland employers must fully comprehend and comply with the MD-WARN Act to ensure all affected employees receive appropriate notice during workforce reductions. Employment loss events are stressful enough, and state-specific laws create additional complexity for employers.
This is where Onwards HR comes in.
Onwards HR is an offboarding compliance platform for people-focused employers. In addition to RIF management and severance technology, Onwards HR provides state separation notice automation—enabling employers to simplify compliance with state-specific separation laws. The penalties for MD-WARN noncompliance can be significant—and the reputational harm can be long-lasting.
Looking for a better way to manage workforce reductions?
Request a meeting to learn more.
