FAMLI Delayed Again — What Maryland Employers Should Still Be Doing Now
AMLI Delayed Again — What Maryland Employers Should Still Be Doing Now Maryland employers are still waiting for the state’s Paid Family and Medical Leave Insurance (FAMLI) program to take effect—but “waiting” doesn’t mean standing still. Earlier this year, we explained the state’s most recent delay in our post, FAMLI Delayed Again: What Maryland Employers Should Know About the State’s Paid Leave Program. Now, as the Maryland Department of Labor proposes to push payroll contributions to January 1, 2027 and benefits to January 1, 2028, employers should use this extra time wisely. This follow-up highlights what businesses should be doing now to prepare—updating policies, coordinating payroll systems, and planning ahead for compliance before the program finally goes live. What the FAMLI Program Does The FAMLI program will provide paid, job-protected leave to employees who need time away from work for certain family or medical reasons, including their own serious health condition, the birth or adoption of a child, or the care of a family member. Most Maryland employers with at least one employee will be covered. Funding comes from a shared payroll contribution, split between employers and employees at a rate to be announced by the Maryland Department of Labor. What Changed in 2025 During the 2025 legislative session, Maryland lawmakers expanded FAMLI coverage through House Bill 895, adding leave to care for military service members and their families. The expansion reflects a growing effort to align state leave rights with federal protections for military caregivers. At the same time, the Department of Labor’s proposal delays both contributions and benefits by roughly two years. That means employers have until early 2027 to get their systems and policies ready—but waiting until then will be a mistake. Steps Employers Should Take Now 1. Review existing leave policies.Compare your current leave options—such as PTO, short-term disability, and FMLA—with FAMLI’s categories of leave. Identify overlap and areas requiring adjustment. 2. Plan for payroll integration.Talk to your payroll provider about system updates to manage state-mandated contributions and reporting. 3. Communicate with employees.Even though benefits won’t be available until 2028, employees are already asking questions. Early, accurate communication helps build trust and reduces confusion. 4. Budget ahead.Employers will be responsible for a share of the contribution. Factor potential costs into long-term budgeting. Why Preparation Still Matters Employers that delay planning risk compliance errors, employee complaints, or administrative problems when the program takes effect. Getting a head start now will make the 2027 transition far easier and help avoid penalties when the Department of Labor begins enforcement. Key Takeaways Payroll contributions start January 1, 2027; benefits start January 1, 2028. FAMLI applies broadly to most Maryland employers. Start now: update leave policies, coordinate payroll, and plan communications. A short delay is no substitute for preparation—when it comes to compliance, early action pays off. How Luchansky Law Can Help FAMLI compliance will touch every aspect of your business—from payroll and benefits administration to employee communications. The attorneys at Luchansky Law help Maryland employers interpret complex labor laws, design compliant policies, and avoid costly missteps before new mandates take effect. We will continue to monitor updates from the Maryland Department of Labor and publish new guidance as the implementation date approaches.Contact our team today to review your leave policies and ensure your business is ready.📞 410-522-1020 | 📧 info@luchanskylaw.com
Multi-State Workforce Management: Compliance Pitfalls and Practical Solutions
Remote and hybrid work are here to stay, and with them come new challenges for employers managing teams across state lines. While flexibility broadens access to talent, it also introduces a patchwork of compliance obligations that can expose employers to risk if not addressed proactively. State Laws Govern Where Employees Work A key rule for employers to remember is this: the law of the state where the employee works—not where the company is based—controls. That means a Maryland resident working from home for a Virginia business is subject to Maryland’s wage and employment protections. Tracking employee locations has become a crucial compliance step. Employee Handbooks: One Size Doesn’t Fit All Uniform handbooks are often not sufficient for multi-state workforces. A policy written with Virginia law in mind could conflict with paid leave or wage laws in Maryland or California. A practical solution is to maintain a standard core handbook and add state-specific supplements tailored to each jurisdiction where employees work. The Maryland Department of Labor provides a Guide to Wage Payment and Employment Standards, which illustrates just how detailed these rules can be. Restrictive Covenants Under Pressure Restrictive covenants like non-compete agreements are facing increased scrutiny. National Trend: The Federal Trade Commission has proposed a rule banning most non-competes nationwide, though court challenges continue. State Spotlight – Maryland: Beginning July 1, 2025, non-competes for direct patient care healthcare providers earning less than $350,000 annually will be unenforceable. This rule was enacted through HB 1388 and is codified in Maryland Code, Labor & Employment § 3-716. Employers should review their restrictive covenants, identify which employees are bound by them, and evaluate whether state laws render those provisions invalid. Alternatives such as non-disclosure or non-solicitation agreements may offer more reliable protection. Proactive Steps for Employers Audit locations to confirm where employees perform work. Review policies for compliance with multiple states. Reevaluate non-competes in light of state and federal trends. Work with counsel for updates as laws evolve. Conclusion Multi-state compliance is no longer a problem only for large corporations. Even small and mid-sized businesses are now navigating this landscape. By taking proactive steps—tracking employee locations, adjusting handbooks, and revisiting restrictive covenants—employers can reduce risk and stay ahead of legal change. Contact us today to discuss how Luchansky Law can help employers build policies and agreements that stand up across jurisdictions. (410) 522-1020 | info@luchanskylaw.com | www.luchanskylaw.com. Preparation remains the best strategy in a shifting legal environment. About Luchansky Law Luchansky Law is a premier labor and employment law firm committed to providing exceptional legal representation and client service. Founded in 2004 by Bruce Luchansky, the firm offers a wide range of legal services to businesses and individuals, focusing on workplace issues, employment disputes, and compliance. Luchansky Law is dedicated to upholding the highest standards of diligence, professionalism, and compassion in its practice.
What Maryland Employers Need to Know About the New Exclusions for Unpaid Parental Leave
Maryland employers should be aware of a recent legal update that changes the landscape for unpaid parental leave. As of July 1, 2024, new exclusions have been added to the Parental Leave Act (PLA) — a state law that provides eligible employees of smaller employers with unpaid, job-protected leave for the birth, adoption, or foster placement of a child. What Changed? The Maryland General Assembly passed legislation amending the PLA to exclude certain categories of employees from coverage. These exclusions apply regardless of the size of the business, and include: Employees covered under a collective bargaining agreement that provides for parental leave; Employees who primarily perform services outside of Maryland; Certain highly compensated employees, such as executive or managerial personnel (under defined criteria). Why It Matters to Your Business If you’re a Maryland employer with 15 to 49 employees, you’re likely already subject to the Parental Leave Act. These new exclusions narrow the scope of employees entitled to unpaid parental leave under the law. What this means for you: You may no longer be required to provide unpaid leave to employees who fall into one of the new exclusion categories. Your employee handbook or leave policies may need updating to reflect the current law. Misclassifying an employee or failing to recognize the new exclusions could expose your business to legal risk. Key Action Items for Employers Review your leave policies – Ensure they align with the updated law. Audit employee classifications – Especially for out-of-state workers and executive staff. Train HR and managers – Make sure decision-makers understand who is and isn’t covered. Seek legal guidance – When in doubt, consult with counsel to avoid compliance issues. Luchansky Law Can Help Our firm regularly advises Maryland employers on leave laws, compliance obligations, and policy development. If you’re unsure how these new exclusions apply to your workforce, or if you need assistance updating your handbook, we’re here to help. Contact Luchansky Law today to protect your business and ensure compliance. Key Resources Maryland Clarifies Parental Leave Law: FMLA-Covered Employers Now ExemptJackson Lewis overview of Senate Bill 785🔗 https://www.disabilityleavelaw.com/2025/05/articles/uncategorized/maryland-clarifies-parental-leave-law-fmla-covered-employers-now-exempt Maryland Enacts Changes to Parental Leave ActNFP’s breakdown of eligibility and changes effective October 1, 2025🔗 https://www.nfp.com/insights/maryland-enacts-changes-to-parental-leave-act Maryland’s Proposed FAMLI Regulations Are Finally HereLabor & Employment Report blog from Shawe Rosenthal LLP🔗 https://www.laboremploymentreport.com/2024/10/27/marylands-proposed-famli-regulations-are-finally-here-what-do-they-say
Maryland’s High Court Gives Employers a Small Win: The “De Minimis” Doctrine Applies to Wage Claims
In a closely watched class-action case involving Amazon, the Maryland Supreme Court recently ruled that the “de minimis” doctrine—which allows courts to disregard trivial claims—applies to Maryland’s wage and hour laws. This decision offers a measure of relief to employers who might otherwise face lawsuits over a few minutes of uncompensated time. From an employment law perspective, this decision is a reminder of how Maryland courts are working to strike a balance between protecting employees’ rights and recognizing the realities of today’s workplaces. While Maryland is known for its strong worker protections, this ruling signals that not every second of time under an employer’s control automatically gives rise to liability. What Happened? The case centered on whether Amazon employees should be paid for the time they spent going through mandatory security screenings after clocking out at a Baltimore fulfillment center. The wait times ranged from a few minutes to more than 15 minutes. The lead plaintiff, Estefany Martinez, argued this time was compensable work. Amazon argued—and the Court agreed—that the de minimis doctrine, long recognized in federal law, applies under Maryland’s Wage Payment Collection Law and Wage and Hour Law. In other words, Maryland employers aren’t required to track and pay for every split second of time, especially when it’s difficult to measure or so minimal that it becomes unreasonable to enforce. What This Means for Maryland Employers This is a narrow victory for employers—but one that shouldn’t be misinterpreted as a green light to ignore small increments of time worked. The Court made clear that some time may still be compensable, even if short, depending on the facts. In other words, “de minimis” doesn’t mean “no liability”—it means “not always.” As employment attorneys, we advise our clients to take a proactive approach to wage and hour compliance. Here are a few takeaways for Maryland employers: Security screenings and similar activities may still be compensable if they exceed trivial time thresholds or occur regularly. Policies should clearly define compensable and non-compensable time—and be consistent with how time is tracked and paid. Class action risk remains if employers fail to evaluate how cumulative unpaid time could add up across a workforce. Employers should remember that state and federal wage laws are interpreted independently, and this ruling doesn’t change federal standards under the Fair Labor Standards Act. A Word of Caution In a strong dissent, two justices argued that even short periods of unpaid work may run afoul of Maryland’s wage laws. Advocates also warn that incorporating the de minimis doctrine could create a slippery slope that allows employers to sidestep responsibility for small but meaningful pockets of unpaid labor. So while this decision may provide breathing room, it’s no excuse for lax timekeeping practices. The safer course? If the time is measurable, regular, and required by the employer—it’s probably compensable. Need Guidance? If you have questions about how this ruling affects your business, or if you want to evaluate your current wage and hour policies for compliance with Maryland law, Luchansky Law is here to help. We work with employers across the state to stay ahead of evolving legal standards—and avoid costly class-action pitfalls. Contact Luchansky Law at (410) 522-1020 or visit https://employmentattorneymd.com/ Reference Links: Maryland Supreme Court opinion (via Maryland Judiciary or news source):https://mdcourts.gov/opinions (search for the case involving Estefany Martinez v. Amazon) Relevant Federal Case Law (Anderson v. Mt. Clemens Pottery Co.):https://supreme.justia.com/cases/federal/us/328/680/ Maryland Wage and Hour Law overview:https://www.dllr.state.md.us/labor/wages/wagehrfacts.shtml
FAMLI Delayed Again: What Maryland Employers Should Know About the State’s Paid Leave Program
The wait continues. Maryland’s Family and Medical Leave Insurance (FAMLI) program has been delayed—again—pushing back the date when employers must start collecting and remitting contributions. Originally expected to launch in 2023 with benefits beginning in 2026, the program’s rollout has now been postponed by state officials. What Is the FAMLI Program? FAMLI was established by the Time to Care Act of 2022 and is designed to provide paid leave benefits to eligible Maryland employees. Once implemented, it will offer up to 12 weeks of partially paid leave for workers who need time off for: A serious health condition; Caring for a family member; Bonding with a new child; Certain military-related events. Funding will come from contributions shared by employees and employers. Why the Delay? While official updates from the Maryland Department of Labor have been limited, previous delays were attributed to the complexities of establishing the administrative systems needed to manage contributions and claims. What Employers Should Do Now Even though deadlines have been postponed, employers can use this time to prepare: Review existing leave policies for consistency with FAMLI goals. Update employee communications to reflect the current status of the program. Monitor guidance from the Maryland Department of Labor for new implementation dates and contribution rates. Failing to prepare could lead to compliance issues once the program does go live. Final Thoughts FAMLI will be a significant change for Maryland employers—especially those not currently offering paid family or medical leave. While delays provide breathing room, they also invite uncertainty. Luchansky Law will continue to monitor the situation and provide clear guidance to help employers stay in compliance. Need help reviewing your leave policies or preparing for FAMLI?Contact us at www.luchanskylaw.com or call (410) 522-1020.
Supreme Court Unanimously Rules in Favor of Plaintiff in “Reverse Discrimination” Case
On June 5, 2025, the U.S. Supreme Court delivered a landmark 9–0 decision in Ames v. Ohio Department of Youth Services, reinforcing that Title VII protections apply equally to all employees—regardless of their demographic background. Justice Ketanji Brown Jackson wrote the majority opinion, concluding that courts cannot impose a higher burden of proof on so-called “majority‑group” plaintiffs (e.g., straight or white individuals). Case Background:Marlean Ames, a heterosexual Ohio state employee with over 15 years of service, alleged she was passed over for a promotion—and later demoted—while less-qualified LGBTQ+ colleagues were promoted in her stead. Lower courts had dismissed her Title VII claim due to a “background circumstances” requirement, which demanded extra proof from majority-group plaintiffs—a standard now struck down by the Supreme Court. Key Takeaways: Equal Legal Standard: Title VII applies to any individual, regardless of race, sex, or sexual orientation. Courts may no longer apply heightened pleading standards based on a plaintiff’s group identity. Majority-Group Plaintiffs Protected: Members of majority groups can now pursue discrimination claims under the same legal framework as anyone else. Potential Rise in Claims: This decision may lead to an increase in claims challenging the fairness of workplace DEI (diversity, equity, inclusion) programs. What This Means for Maryland Employers Apply Policies Uniformly: Ensure discrimination protections apply equally to all employees. Document Employment Decisions: Use objective criteria in hiring and promotions, and maintain clear records. Investigate All Complaints Fairly: Complaints from majority-group employees must be taken seriously and evaluated without bias. Contact Us Luchansky Law helps Maryland employers stay compliant with ever-evolving employment laws. Whether you need assistance updating your HR policies, handling a discrimination complaint, or defending your business in court, our team is here to help. Call us at (410) 522-1020 Learn more at employmentattorneymd.com Contact us today for a consultation. References: Washington Post – Supreme Court sides with woman claiming anti-straight job discrimination Time – Supreme Court Unanimously Sides With Straight Woman In ‘Reverse Discrimination’ Case Reuters – US Supreme Court makes ‘reverse’ discrimination suits easier SCOTUSblog – Case analysis of Ames v. Ohio Department of Youth Services
Understanding Maryland’s Enhanced WARN Act Obligations: What Employers Need to Know
When businesses are forced to make tough decisions about layoffs or plant closures, advance planning is not just smart—it’s required by law. In Maryland, employers must be particularly cautious. The state’s Economic Stabilization Act (ESA) imposes more stringent notice obligations than the federal WARN Act, and failure to comply can lead to significant legal exposure. Who Is Covered? Maryland’s ESA applies to: Employers with 50 or more full-time employees operating in the state Reductions in operations affecting 25 or more full-time employees over a three-month period Relocations, shutdowns, or mass layoffs, even if temporary This lower threshold means that many small and mid-sized businesses—those not subject to federal WARN—must still comply with Maryland’s notice requirements. What Does the ESA Require? Covered employers must provide written notice at least 60 days in advance to: Affected employees Any union representatives The Maryland Department of Labor Local government officials in the area of the affected facility This requirement mirrors the federal WARN Act in terms of timing but covers more employers and situations. Read the Maryland WARN FAQ for more details. Penalties for Noncompliance Failing to give proper notice may result in: Civil penalties of up to $10,000 per day Back pay and benefits owed to affected employees Reputational harm and increased risk of litigation Best Practices for Employers To ensure compliance, Maryland employers should: Evaluate whether any workforce changes trigger the ESA notice obligations Consult legal counsel early in the planning process Coordinate with HR and communications teams to prepare clear and timely notifications Maintain documentation of all notices sent and received How Luchansky Law Can Help Whether you’re restructuring, relocating, or downsizing, Luchansky Law can help you navigate Maryland’s WARN requirements and reduce your legal risk. Our attorneys routinely advise employers on layoff compliance and communication protocols during workforce transitions. Have questions or concerns about a planned layoff or closure? Contact us today to discuss how we can help you stay compliant—and protect your business. Have questions or concerns about a planned layoff or closure? Contact us today to discuss how we can help you stay compliant—and protect your business.
Luchansky Law Welcomes Two New Attorneys to the Firm
FOR IMMEDIATE RELEASE Baltimore MD – May 2, 2025 – Luchansky Law is pleased to announce the addition of AJ Esral and Alan M. Glickman to the Luchansky Law team. AJ Esral joined Luchansky Law as an associate in 2024. A graduate of the University of Maryland Francis King Carey School of Law, AJ brings valuable experience in business law and litigation with a focus on multi-state mortgage insurance. At our firm, AJ supports clients by drafting employment agreements and handbooks, advising on key employment laws—including the FLSA, FMLA, and ADA—and preparing legal briefs and filings. Known for a friendly approach and strong writing skills, AJ is dedicated to helping clients navigate the evolving employment law landscape. Alan M. Glickman brings over two decades of federal government experience to Luchansky Law, having most recently overseen the employment discrimination complaint process for a federal agency of 60,000 employees. As a senior manager and trusted advisor to top agency leadership, Alan gained deep insight into workplace rights and obligations. Now, as an attorney at our firm, Alan is using that expertise to help clients manage complex employment issues with clarity, care, and conviction. Please join us in welcoming AJ and Alan to the firm. Their unique backgrounds and commitment to client service strengthen our ability to provide top-tier counsel to employers across Maryland. About Luchansky Law Luchansky Law is a preeminent labor and employment law firm committed to providing exceptional legal representation and client service. Founded in 2004 by Bruce Luchansky, the firm offers a wide range of legal services to businesses and individuals, focusing on workplace issues, employment disputes, and compliance. Luchansky Law is dedicated to upholding the highest standards of diligence, professionalism, and compassion in its practice. For personalized legal guidance, please contact our office at: (410) 522-1020 | info@luchanskylaw.com | www.luchanskylaw.com
Maryland Employers: What the Proposed FAMLI Implementation Delay Means for You
In February 2025, the Maryland Department of Labor (MD Labor) proposed extending the implementation timeline for the state’s Family and Medical Leave Insurance (FAMLI) program. This adjustment aims to provide employers and workers additional time to prepare for the program’s requirements. Key Changes in the Proposed Timeline Under the revised plan: Payroll Deductions: Would commence on January 1, 2027. Benefits Availability: Eligible employees could begin receiving benefits on January 1, 2028. This proposal responds to recent federal actions that have introduced economic uncertainties affecting Maryland’s workforce, including potential reductions in federal employment and impacts on federally funded private sector jobs. Implications for Maryland Business Owners The proposed delay offers several advantages: Extended Preparation Time: Employers gain additional time to understand the program’s requirements and integrate necessary systems. Financial Planning: Businesses can better plan for the financial aspects of payroll deductions and benefit distributions. Employee Communication: Organizations have more time to educate their workforce about the upcoming changes and benefits. Understanding FAMLI Once implemented, FAMLI will: Provide Paid Leave: Eligible employees can receive up to $1,000 per week for up to 12 weeks to care for a family member or address their own serious health condition. Ensure Job Protection: Employees taking leave under FAMLI will have job protection during their absence. Promote Workforce Stability: By supporting employees during critical times, FAMLI aims to enhance overall workforce morale and retention. Next Steps for Employers While the implementation is proposed to be delayed, it’s crucial for employers to: Stay Informed: Monitor updates from MD Labor regarding the FAMLI program. Review Policies: Assess current leave policies to ensure alignment with upcoming FAMLI requirements. Seek Guidance: Consult with legal professionals to navigate the complexities of the new program and ensure compliance. Prepare Now for Maryland’s FAMLI Program Don’t wait for the deadline—start preparing today. Contact Luchansky Law to review your policies, develop a compliance plan, and ensure your business is ready when the Family and Medical Leave Insurance program takes effect.
Maryland Business Owners: What You Need to Know About the State’s Crackdown on Worker Misclassification
A recent report from Maryland’s Joint Enforcement Task Force on Workplace Fraud (JETF) reveals that more than 5,500 workers were misclassified as independent contractors in 2024. This misclassification not only deprives workers of essential benefits—it also exposes employers to serious financial and legal risk, and creates unfair competition for businesses that play by the rules. Why This Matters to Maryland Employers Misclassifying workers can lead to significant consequences: Financial Penalties: The Maryland Division of Unemployment Insurance uncovered over $36 million in unreported taxable wages in 2024. The Comptroller’s Office alone issued more than $3 million in tax, interest, and penalty assessments. Legal Risks: Employers who misclassify workers may be subject to investigations, citations, back taxes, restitution, and penalties under Maryland’s Workplace Fraud Act. Reputational Harm: Companies caught engaging in workplace fraud risk damage to their brand, employee trust, and client relationships. Industries Under Scrutiny While worker misclassification can happen in any sector, the report identifies the most commonly affected industries: Construction Landscaping Home Health Care Janitorial Services Security Transportation For example, in Maryland’s construction industry alone, an estimated 11% of workers are misclassified, depriving the state of vital unemployment insurance and tax contributions. How Employers Can Stay Compliant Maryland’s enforcement activity is ramping up—now is the time to take a close look at your workforce. Key steps include: Review Worker Classifications: Ensure your independent contractors aren’t actually employees under the law. Understand the Rules: Learn the standards under Maryland’s Workplace Fraud Act and federal law. Get Legal Guidance: When in doubt, consult with counsel—especially for gray areas or unique arrangements. Maintain Documentation: Keep detailed records of work arrangements, job responsibilities, and payment methods. Final Takeaway The growing focus on workplace fraud in Maryland is a reminder that worker classification is not just an HR issue—it’s a legal and financial one. Proper classification protects your business, your workers, and your bottom line. Need help reviewing your workforce classification policies? Contact Luchansky Law to speak with an attorney. References Maryland Department of Labor. “New Report on Workplace Fraud in Maryland Finds Thousands of Misclassified Workers” (February 20, 2025) Joint Enforcement Task Force Annual Report (2024). Download PDF