Chapter 02. Economic Stabilization
Regulation .01 Purpose.LinkCopy Citation
The Economic Stabilization Act regulations provide notice requirements and guidelines for employers faced with a major reduction in the workforce.
Regulation .02 Exemptions.LinkCopy Citation
This chapter does not apply to a reduction in operations as described in Labor and Employment Article, §11-302, Annotated Code of Maryland.
Regulation .03 Definitions.LinkCopy Citation
A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Bulk claims” means deploying Maryland Division of Unemployment Insurance to the employer’s and employees’ place of business to assist the employees in filing unemployment claims through the unemployment online claim filing system for incidents where 25 or more workers are laid off at one time.
(2)
“Employee” has the meaning stated in Labor and Employment Article, §11-301(b), Annotated Code of Maryland.
(3)
Employer.
(a)
“Employer” means a person, corporation, or other entity that:
(i)
Operates an industrial, commercial, or business enterprise;
(ii)
Employs at least 50 employees;
(iii)
Has been operating for at least 1 year; and
(iv)
Is operating in the State of Maryland.
(b)
“Employer” does not mean the State or its political subdivisions.
(4)
“Permanent” has the meaning stated in Labor and Employment Article, §11-301(d), Annotated Code of Maryland.
(5)
“Reduction in operations” has the meaning stated in Labor and Employment Article, §11-301(e), Annotated Code of Maryland.
(6)
“Remote worker” refers to an employee, or multiple employees operating under the same Employer Identification Number, with a permanent work arrangement under which they are scheduled to perform duties, responsibilities, and other authorized activities of such employee’s position at an approved worksite other than the assigned workplace.
(7)
“Secretary” means the Secretary of the Maryland Department of Labor.
(8)
“Telework” refers to a worksite flexibility agreement for the purpose of allowing an employee or employees to perform their duties, responsibilities, and other authorized activities of such employee’s position from an approved alternative worksite other than the employee’s official duty station.
(9)
Workplace.
(a)
“Workplace” has the meaning stated in Labor and Employment Article, §11-301(f), Annotated Code of Maryland.
(b)
“Workplace” includes the official duty station or agency worksite for telework employees within the State of Maryland.
(c)
“Workplace” includes the entire State of Maryland, which is considered a single workplace for any remote worker or collection of remote workers.
Regulation .04 Notice.LinkCopy Citation
At least 60 calendar days prior to initiating a reduction in operations, an employer shall provide written notice as required by Labor and Employment Article, §11-305, Annotated Code of Maryland.
Regulation .05 Guidelines for Employers Anticipating a Permanent Reduction in Operations.LinkCopy Citation
A.
Employers facing a reduction in shall use their best efforts to meet with employee representatives regarding concessions or alternatives, or both, in an effort to prevent closure and the reduction in operations.
B.
Termination Phase-In.
(1)
Meet with employee representatives regarding concessions or alternatives, or both, to closure in order to save the place and save jobs;
(2)
If collective bargaining agreements are in force, then the employer shall implement the provisions of each agreement as the agreement pertains to termination and seniority.
C.
Post Termination Benefits.
(1)
Employers should consider continuing non-work-related benefits for as long as feasible following termination.
(2)
Employers should consider offering laid-off employees the following benefits:
(a)
Health care coverage or the option of continuing, at the employee's own expense, the employee's current health care coverage:
(i)
For at least 6 months following termination; or
(ii)
Until other employment is secured;
(b)
Participation rights in employee credit unions; and
(c)
Other special company benefits.
D.
Special Termination Benefits.
(1)
Employers should consider providing the following special benefits:
(a)
Retraining allowances, which:
(i)
Could range from $1,000 to $1,800; and
(ii)
Can be utilized by any employee who both enrolls and completes a retraining program or career-related educational program;
(b)
A severance pay package tied to the employee's wage level or length of employment, or both;
(c)
Job search assistance or job clubs which include instruction on how to:
(i)
Market employment skills;
(ii)
Complete resumes/applications;
(iii)
Interview;
(iv)
Look for work; and
(v)
Utilize labor market information.
(2)
Employers may implement on-site displaced worker centers to provide a central place for the dissemination of all termination services and information.
Regulation .06 Assistance from the Maryland Department of Labor.LinkCopy Citation
A.
The Maryland Department of Labor shall make the Rapid Response Program available to employers consisting of:
(1)
On-site unemployment insurance bulk claims registration;
(2)
Registration of federal trade readjustment services;
(3)
Labor market and retraining information;
(4)
Job placement services;
(5)
Job seeking and finding information; and
(6)
Referral to retraining opportunities.
B.
The Maryland Department of Labor shall assist employers in planning for and implementing a program to provide reemployment services for displaced or soon to be displaced workers by attempting to provide:
(1)
Assistance with planning for reemployment services to the work force;
(2)
Assistance with planning for and implementing an on-site displaced worker assistance center; and
(3)
Financial resources, as available, to assist with a wide range of employment and training services.
Regulation .07 Mechanisms to Start Assistance Programs from the Maryland Department of Labor.LinkCopy Citation
A.
.Employers may contact the Assistant Secretary for the Division of Workforce Development and Adult Learning.
B.
The Secretary shall:
(1)
Monitor layoffs to identify employers who are likely to experience a reduction in operations;
(2)
Identify employers likely to experience a reduction in operations; and
(3)
Contact all employers in the State who appear to be faced with or planning a permanent reduction in operations. This contact shall be:
(a)
; Considered confidential, commercial, and financial information;
(b)
Directed to the chief executive of the business; and
(c)
For the purpose of offering:
(i)
Planning assistance; and
(ii)
Assistance in providing services, if needed.
C.
If the employer approves, the Maryland Department of Labor may contact other partner organizations to provide whatever assistance and resources are deemed appropriate.
Regulation .08 Order Compelling Compliance.LinkCopy Citation
A.
Issuance.
(1)
If, after investigation, the Secretary, or the Secretary’s designee, believes an employer has violated Labor and Employment Article, §11-305, Annotated Code of Maryland, or a regulation adopted pursuant to this Act, the Secretary shall, with reasonable promptness, issue an order compelling compliance.
(2)
An order shall:
(a)
Be in writing;
(b)
Describe with specificity the nature of the alleged violation;
(c)
State the penalty, if any, that the Secretary proposes to assess under Labor and Employment Article, §11-306, Annotated Code of Maryland; and
(d)
Inform a party of the requirements of §B(2) of this regulation.
B.
Enforcement.
(1)
A party to whom an order is issued may file with the Secretary, or the Secretary’s designee, a written notice of contest to the proposed penalty.
(2)
Notice shall be:
(a)
In writing; and
(b)
Postmarked within 15 business days of the date of the order.
(3)
If a party does not file proper notice of contest, any proposed penalty becomes final upon the expiration of 15 business days following the party's receipt of the order.
(4)
If a party files a notice of contest in accordance with this regulation, the Secretary, or the Secretary’s designee, shall delegate the hearing to the Office of Administrative Hearings.
(5)
A contested hearing shall be governed by COMAR 09.01.03.
Regulation .09 Penalties and Scope.LinkCopy Citation
A.
This regulation applies to the assessment of civil penalties by the Secretary, or the Secretary’s designee, under Labor and Employment Article, §11-306, Annotated Code of Maryland, in all cases arising from a violation of Labor and Employment Article, §11-305, Annotated Code of Maryland.
B.
In assessing a penalty for a violation of the law, a regulation, or an order, the Secretary or the Secretary’s designee shall consider the factors listed in Labor and Employment Article, §11-306(b), Annotated Code of Maryland.
Chapter annotations
Authority: Labor and Employment Article, §§11-301—11-306, State Government Article, §10-206, Annotated Code of Maryland
History: Effective date: May 19, 1986 (13:10 Md. R. 1158)
History: Chapter recodified from COMAR 24.03.03 to COMAR 24.03.02
History: Chapter recodified from COMAR 24.03.02 to COMAR 09.33.02, May 1996
History: Chapter revised effective October 13, 2025 (52:20 Md. R. 1000)