Forthcoming Maryland Laws Target Employer Practices and Labor Rights

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Quick Hits

• SB694 would establish that filing a complaint with the Maryland Commission on Civil Rights satisfies the administrative prerequisites for bringing a civil action under county discrimination laws.
• SB831/HB1480 would establish new civil penalties for child labor violations, prohibit the formation of certain workplace groups to address working conditions, and conditionally create a private sector state labor board.
• SB417/HB45 would prohibit employers from conducting mandatory meetings on religious or political matters, which includes union organizing matters (e.g., “captive audience meetings”).
• HB1016 would expand the restrictions on noncompete agreements, but only as to licensed architects when their employers relocate outside the state.
• SB0439/HB0797 would provide employment protections to fire and rescue public safety employees for the use of medical cannabis.
• Other bills would extend collective bargaining rights for various public employees, including nontenure-track faculty and graduate students at state universities, as well as Baltimore County Public Library supervisory employees.

These bills have been sent to Governor Wes Moore, and he can sign them into law, veto them, or allow them to become law without his signature. Vetoes are not expected on any of these bills, however. Below is a summary of the key provisions of each bill and what they mean for Maryland employers.

County Discrimination Claims—Expanded Agency Filing Options (SB694)

Current law requires individuals to file a complaint with their local county agency and observe a waiting period (e.g., forty-five days in Howard, Montgomery, and Prince George’s Counties; sixty days in Baltimore County) before bringing a civil action under county discrimination laws. SB694 would allow employees to satisfy that prerequisite by filing instead with the Maryland Commission on Civil Rights, and would extend a similar commission-filing option to all other counties with local discrimination laws. If enacted, SB694 will take effect on October 1, 2026.

Child Labor Penalties, Private Sector Labor Relations, and State Employee Labor Standards (SB831/HB1480)

This multifaceted bill covers several disparate topics, including an increase in the penalties for violations of the child labor laws, a prohibition on the creation of certain workplace groups to address working conditions, and the creation of a state labor board to govern private sector employees if the National Labor Relations Act (NLRA) were to be repealed or if the National Labor Relations Board (NLRB) were to cede jurisdiction. If enacted, SB831 is set to take effect on June 1, 2026, although certain key provisions relating to private sector labor relations are contingent on specific federal developments.

New Civil Penalties for Child Labor Violations

Maryland already imposes criminal penalties—fines up to $10,000 and/or imprisonment up to one year—for knowingly employing a minor in violation of child labor restrictions. SB831 would add new civil penalties: up to $16,035 per general violation and up to $72,876 per willful or repeated violation involving hazardous or prohibited employment (both subject to annual CPI-based increases beginning in 2027).

Prohibition on Certain Employer-Initiated Workplace Committees

SB831 would prohibit employers from allowing the formation of workplace groups that include both supervisors and employees to address working conditions of mutual interest (e.g., quality of work, productivity, efficiency, compensation, benefits, recruitment, retention, grievances, child care, safety, health, and religious accommodations), if such groups may be dissolved unilaterally by the employer and are expressly exempt from the NLRA or NLRB jurisdiction through any federal action occurring on or after January 1, 2026. The provision would not affect traditional labor organizations subject to NLRB jurisdiction, nor committees required for industry accreditation.

State-Level Labor Board Jurisdiction Over Private Employees

 SB831 would extend conditional, state labor board jurisdiction over private employers that would take effect only if the NLRA is repealed or the NLRB expressly cedes jurisdiction to Maryland. If triggered, the existing Maryland Public Employee Relations Board (PERB) would assume authority over private sector labor relations for any individual covered—or who would have been covered—by the NLRA as of January 1, 2025. The PERB would be empowered to conduct union elections, certify employee bargaining representatives, order employers to bargain or submit to binding arbitration, adjudicate unfair labor practices, and impose appropriate remedies, including injunctive relief or civil penalties up to $1,000 per affected employee.

Prohibition on Captive Audience Meetings (SB417/HB45)

With this bill, Maryland would join a number of other states that have passed similar legislation prohibiting employers from requiring employees to attend mandatory meetings regarding union organizing, in addition to other topics such as politics or religion. Employers would be allowed to conduct voluntary meetings on these topics, and there is an exemption for employee training related to compliance with federal or state laws, including those regarding discrimination, harassment, and workplace safety. If the commissioner of labor and industry were to determine that there has been a violation of the law, the commissioner may order civil penalties up to $25,000, a cease-and-desist order, and other appropriate relief (e.g., injunctive relief, compensatory damages, job reinstatement, back pay and benefits, and attorneys’ fees and costs). The commissioner may also seek judicial enforcement of any order. Employers would further be required to provide notice to employees of their rights under this bill by posting a model notice, to be developed by the commissioner, and providing the commissioner’s notice upon hiring. If enacted SB417 is set to take effect on October 1, 2026.

Notably, most of the similar laws in other states have been subject to challenge on the grounds that they are partially preempted by the NLRA and/or they violate employers’ free speech rights under the First Amendment to the U.S. Constitution. At least one state—Connecticut—has stated that it will not enforce its law. It is likely that SB417 will face similar challenges if it is not vetoed by the governor.

Restrictions on Noncompete Agreements for Licensed Architects (HB1016)

Although HB1016 was initially drafted to apply to employers generally, it was amended through the legislative process to apply only in a very specific situation: such agreements would not be enforceable against licensed architects whose employer had a primary worksite in Maryland with more than thirty employees at the time of the architect’s hire, but subsequently relocated either the majority of its employees or its principal place of business outside Maryland. This bill would take effect on October 1, 2026.

Medical Cannabis Protections for Fire and Rescue Public Safety Employees (SB0439/HB0797)

This bill would amend the state fair employment practices act to prohibit employment discrimination against fire and rescue public safety employees (i.e., firefighters, emergency medical technicians, cardiac rescue technicians, and paramedics) for the valid, off-duty use of medical cannabis. It would apply only to those employed by public—not private—employers, with exceptions where violations of federal law or loss of a federal benefit would result. The bill would allow employers to prohibit employees from working under the influence and on-duty use. Notably, there are no existing employment protections for any other type of employees. This bill would take effect on October 1, 2026.

Collective Bargaining Rights for Certain Public Sector Employees (SB253/HB388; SB6/HB106; SB84/HB141)

Multiple bills would extend collective bargaining rights for various groups of public sector employees, including nontenure-track faculty and graduate assistants at state universities, as well as supervisory employees at the Baltimore County Public Library. The effective date for all of these bills, if enacted, is July 1, 2026.

Ogletree Deakins’ Baltimore office will continue to monitor developments and will provide updates on the Drug Testing, Maryland, Traditional Labor Relations, Unfair Competition and Trade Secrets, and Wage and Hour blogs as additional information becomes available.

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