The Maryland Economic Stabilization Act (ESA), commonly known as the Maryland Mini-WARN Act, requires certain employers to provide advance notice before conducting mass layoffs or workforce reductions. Modeled after the federal Work Adjustment and Retraining Notification (WARN) Act, the Maryland law expands on these protections at the state level. With newly proposed regulations expanding definitions and enforcement already underway, Maryland employers should take steps now to ensure compliance.
What Is the Maryland Mini-WARN Act?
Passed in 2020 through Senate Bill 780, the Maryland Mini-WARN Act was designed to increase transparency and support for workers impacted by significant workforce changes. It applies to employers with 50 or more employees who have operated in the state for at least one year. The law comes into play when a business undergoes a “reduction in operations” including:
- Relocating part of its operations, resulting in the loss of 15 employees or 25% of the workforce, whichever is greater.
- Shutting down all or part of a facility with similar impact over a three-month period.
Employers must provide 60 days’ written notice before these changes take place. Failure to comply can result in civil penalties of up to $10,000 per day. Certain employees, such as those working fewer than 20 hours per week or employed for less than six months, aren’t counted toward the 50-employee threshold.
New Proposed Regulations: What’s Changing?
In June 2025, the Maryland Department of Labor (MDOL) issued updated proposed regulations to clarify and expand employer responsibilities. While not yet finalized, MDOL has begun enforcing the law based on the current framework.
- Expanded Definitions: Remote and telework arrangements are now formally defined, with the entire state treated as a single worksite. This means layoffs involving remote staff could trigger notice requirements.
- Clarified Notice Requirements: Employers must continue to provide 60 days’ written notice to:
- All affected employees
- Any employee representatives (e.g., unions)
- The Maryland Dislocated Worker Unit
- The mayor or county executive of the jurisdiction where the workplace is located
- Active Enforcement: MDOL has signaled a stronger enforcement stance. Employers should follow notice procedures carefully to avoid penalties.
What This Means for Employers: Steps to Take Now
With enforcement underway and final regulations imminent, Maryland employers should act now to ensure compliance:
- Assess Your Workforce: Determine if your organization meets the 50-employee threshold and understand how operational changes could trigger Mini-WARN obligations.
- Review Internal Processes: Review how your organization handles workforce changes and transitions. Ensure protocols are in place to issue timely and accurate notices if needed.
- Review Remote Work Policies: Understand how your remote and telework arrangements may be interpreted under the new definitions.
- Consult Legal Counsel: Given the complexity and evolving nature of the regulations, legal guidance can help ensure your organization remains compliant.
- Monitor Updates: Keep an eye on the Maryland Register and MDOL’s website for final rule announcements and additional guidance.
Reach Out to an Advisor
By understanding the Mini-WARN’s scope and preparing accordingly, organizations can navigate these changes with confidence and care. Connect with an advisor today to discuss your legal obligations, evaluate potential insurance coverage related to workforce changes and strengthen your overall compliance strategy.