Maryland WARN Act Notice Requirements and Penalties

Under the Maryland WARN Act — formally the Economic Stabilization Act — a covered employer must give at least 60 days’ written notice before a mass layoff, relocation, or shutdown to the affected workers (or their union), the Maryland Department of Labor’s Dislocation Services Unit, and the chief elected official of the locality where the workplace sits. Miss the deadline or skip a recipient and the state can assess a civil penalty of up to $10,000 for each day of noncompliance. The law is codified at Maryland Labor and Employment §§ 11-301 through 11-306, and it catches smaller reductions than the federal WARN Act does.

Which Employers Are Covered

The Act applies to any person, corporation, or other entity that employs at least 50 employees and operates an industrial, commercial, or business enterprise in Maryland.¹ Two employer categories are carved out: state and local government agencies, and any business that has operated in Maryland for less than one year.

Not every worker counts toward the 50-employee threshold. The statute excludes individuals who average fewer than 20 hours per week and those who have worked for the employer fewer than six of the preceding 12 months.¹ A company with 60 people on its payroll can fall below the mark once part-timers and short-tenure hires are removed. Count carefully before assuming you’re either in or out.

What Triggers the Notice Requirement

Once an employer is covered, the notice obligation attaches to a “reduction in operations.” The statute defines that term two ways:

Relocation. Moving part of an operation from one workplace to another site in a way that reduces headcount at the original location by at least 25 percent or 15 employees, whichever is greater.
Shutdown. Closing a workplace entirely, or shutting down a portion of its operations, so that total employees drop by at least 25 percent or 15 workers (whichever is greater) over any three-month period.¹

The three-month rolling window is the trap. Eight layoffs in January and eight more in March may not feel like a mass event, but if the combined total clears the 25-percent-or-15 threshold, both rounds are covered. Track cumulative reductions, not just individual announcements.

A shutdown is treated as permanent unless the employer has agreed in a written contract to restore operations within three months of the reduction.¹ Temporary shutdowns without that written commitment are handled the same as permanent closures for notice purposes. Construction sites and other temporary workplaces are excluded from the definition of “workplace.”

How Maryland’s Rules Differ From Federal WARN

An employer can comply with federal WARN and still violate Maryland’s Act. The two overlap; they don’t line up.

Employer size. Federal WARN applies to businesses with 100 or more employees. Maryland’s threshold is 50.²
Layoff trigger. Federal law requires notice at 50 or more workers affected, or at least 33 percent of the active workforce. Maryland’s threshold is lower: 25 percent or 15 employees, whichever is greater.²
Notice period. Both laws require 60 days.
Exceptions. Federal WARN allows reduced notice for unforeseeable business circumstances, natural disasters, and “faltering companies” seeking capital. Maryland’s statute has no comparable carve-outs. The 60-day clock runs even when the downturn is sudden.

The practical upshot: a Maryland employer with 60 workers laying off 16 people owes state notice but falls below the federal radar entirely.

Who Must Receive Notice

Written notice must reach three recipients at least 60 days before the first employee separation takes effect:²

Every worker who may reasonably expect to lose a job because of the reduction. If a union represents the workforce, notice goes to the exclusive bargaining representative in place of individual employees.
The Maryland Department of Labor’s Dislocation Services Unit.
The chief elected official of the affected locality, usually the county executive or the mayor.

The 60 days run from the date of the first separation, not the date of the layoff decision. When layoffs roll out in waves, the clock starts at the earliest cut in the series. Plan backward from that date, because Maryland has none of the safety valves that let federal filers shorten the window.

What the Notice Must Say

A valid notice needs enough detail for the state to mobilize transition services and for workers to start planning. At minimum, include:

The name and street address of the workplace where the reduction will occur.
The name and direct phone number of a company official who can answer questions about the layoff.
The expected date of the first separation, along with a schedule for any later rounds.
The job titles of positions being eliminated.²

The Maryland Department of Labor publishes standardized templates on its WARN page. Using the template isn’t required, but it’s the cleanest way to avoid missing a required field. Pick a contact person who actually knows the operational details, because that person becomes the state’s primary point of contact through the transition.

How to File

Submit the notice to the Dislocation Services Unit by email at dlwdalwarn-labor@maryland.gov, or by mail to the Maryland Department of Labor, Dislocation Services Unit, 100 S. Charles Street, Tower 1, Suite 2000, Baltimore, MD 21201.² Email is faster and more commonly used. Delivery to the local chief elected official typically goes by certified mail so the employer has a dated receipt. Keep every confirmation. If timeliness is later disputed, the burden of proof sits with the employer.

Once the Dislocation Services Unit receives a filing, Maryland activates its Rapid Response program and coordinates on-site services for the affected workforce: career counseling, resume help, job-search assistance, unemployment insurance guidance, and information about training programs and education benefits.² Filing early is what makes those services available before people are out the door.

Penalties for Missing or Late Notice

If the Secretary of Labor determines that an employer violated the notice requirement, the Secretary must issue an order compelling compliance and may assess a civil penalty of up to $10,000 for each day the employer was in violation.³ The fines are cumulative. Thirty days of missed notice can mean up to $300,000 in exposure before any other costs are counted.

The Secretary has discretion over the amount, but must weigh four factors:

The gravity of the violation.
The size of the employer’s business.
The employer’s good faith.
The employer’s history of violations under the Economic Stabilization Act.³

Good faith can reduce a penalty; it does not eliminate one. An employer who genuinely tried to comply but miscounted employees or miscalculated the three-month window sits in a better position than one who knew the rule and ignored it. Any assessment is subject to the notice and hearing requirements of Maryland’s Administrative Procedure Act, so employers get a formal chance to contest the amount before it’s final.

Federal WARN carries its own remedies, including back pay and benefits for each day of the violation period. An employer that breaches both laws faces stacked exposure under state and federal rules at the same time.

If You’re a Worker Who Just Got a Notice

Maryland’s Rapid Response and Dislocation Services programs offer career guidance, resume preparation, interview practice, job fairs, and direct job-search help. The state also assists with unemployment insurance claims, information on continuing healthcare coverage, and referrals to training programs, Pell Grants, GI Bill benefits, and Trade Adjustment Assistance for workers whose jobs were affected by foreign trade.² The Department of Labor also publishes an Employment Benefits Guide for Workers in Transition on its website.

If your employer gave less than 60 days’ notice, or none at all, contact the Dislocation Services Unit directly. The state can still activate Rapid Response services, and your employer’s failure to comply does not reduce your access to them.

1
Maryland General Assembly. Maryland Code Labor and Employment 11-301 – Definitions
2
Maryland Department of Labor. Work Adjustment and Retraining Notification (WARN) and Other Dislocation Notices
3
New York Codes, Rules and Regulations. Maryland Code Labor and Employment 11-306 – Violation of Requirement for Notification of Reduction in Operations