News and Resources

The Maryland False Claims Act

The recently enacted Maryland False Claims Act allows a private individual to file a civil action on their own behalf and on behalf of the defrauded governmental entity. The individual may seek penalties, court costs and attorney’s fees. The law presents interesting new twists to the procedural requirements for filing a complaint in these cases. First, the complaint must be filed in camera (meaning, it is not publicly accessible and only the judge can view it) and shall remain under seal (same idea as “in camera”) for at least 60 days. Second, the complaint may not be served on the defendant until the complaint is unsealed and the court orders the complaint served. Finally, within 60 days after the government is served, the government may elect to intervene and proceed with the action. If the government does not elect to intervene and proceed with the action, before unsealing the complaint, the court shall dismiss the action. However, should the government elect to intervene, and upon a successful litigation, the individual may be awarded between 15 to 25 percent of the proceeds of the action or settlement, proportional to the amount of time and effort that the individual contributed, in addition to penalties, court costs and attorney’s fees. The law also provides for a cause of action where a company retaliates against an employee or contractor who investigates, initiates, testifies or assists in a False Claims Action. The employee may seek an injunction, reinstatement of seniority status, reinstatement of benefits and rights, two times the amount of lost wages and other benefits, reimbursement for costs and attorney’s fees, punitive damages, and any other relief necessary to “make the employee whole.” Contact the experienced Employment Lawyers at Luchansky Law today to assist you in pursuing a claim under the Maryland False Claims Act.

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The Inevitable Disclosure Doctrine

The Inevitable Disclosure Doctrine may at first sound like an indecipherable philosophical legalese run-on sentence. Therefore, we present to you the following close-to-home-hypothetical situation (any resemblance to actual people or events is entirely coincidental). If Cal Ripken Jr. were to, perish the thought, become a consultant for a Major League Baseball Club other than the Orioles, I surmise that Cal’s new employer would hope to gain insights into the Orioles’ inner strategies. Even if we were to believe that Cal, “in good faith” would not intentionally reveal any of the Orioles’ secrets, alas, some jurisdictions subscribe to “The Inevitable Disclosure Doctrine” which presumes that Cal will “inevitably disclose” his knowledge of (his former employer’s) secrets or confidential information. Yet, there is hope for Cal, because the Maryland Courts do not subscribe to “The Inevitable Disclosure Doctrine.” But wait: If I am a Maryland Employer, does that mean that an employee of mine, who is privy to my company’s trade secrets or confidential information, who leaves me to work for a competitor – – – can reveal all of my company’s trade secrets and confidential information to my competitor??? Yes. Unless the employee signs a non-compete and/or confidentiality agreement with your company. Contact the experienced Employment Lawyers at Luchansky Law to assist with you with drafting non-compete and confidentiality agreements today.

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New Maryland Law: Default Lien on Employer for Unpaid Wages

The recently enacted Maryland Lien for Unpaid Wages law allows employees who are owed wages by their employer to file a lien against their employer. The employee simply notifies the employer of their intent to claim a lien and the employer is then required to file a Circuit Court Complaint to avoid default judgment. Fortunately, under this new law, “wages” does not include commissions. Moreover, an employee who wishes to establish a lien for unpaid wages must satisfy three requirements in notifying the employer: the notice must be served on the employer within the general three year statute of limitations governing civil actions; the notice must satisfy the service of process requirements under the Maryland Rules of Civil Procedure; the notice must contain information that provides the employer with adequate notice of the wages claimed and the property against which the lien for unpaid wages is sought. To avoid default judgment, an employer must dispute the claim by filing a Complaint in the Circuit Court for the County where the property is located. The Complaint must be filed within 30 days after the employee’s notice is served. The Complaint must include some basic information as well as a statement of any defense to the lien. Once the Complaint is filed, the Circuit Court will determine whether to issue an order establishing a lien for unpaid wages within 45 days after the date on which the Complaint was filed. The Court’s decision is based on a preponderance of the evidence in which the employee has the burden of proof to establish the lien for unpaid wages. Either the employer or employee may request an evidentiary hearing. If the Court issues an order establishing a lien, the employee is entitled to Court costs and reasonable attorney’s fees. However, if the court determines that the employee’s claim was frivolous or made in bad faith, the employer may be awarded Court costs and reasonable attorney’s fees.

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Maryland Minimum Wage Law Updates

On July 1, 2015, the minimum wage in Maryland increased to $8.25 per hour. However, in Montgomery County and Prince George’s County, the current minimum wage is $8.40 per hour. On October 1, 2015, the Montgomery County and Prince George’s County minimum wages will increase to $9.55 per hour.

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“Ban the Box?” Am I Required to Hire Criminals?

“Ban the Box” laws, so called from the question (or box to be checked) on an employment application that asks an applicant about their criminal background, prohibit the use of a check-box on job applications indicating whether or not the applicant has a criminal record. In 2014, Maryland lawmakers instituted legislation that encourages Maryland employers to “think outside the box.” Baltimore City, Montgomery County and Prince George’s County, respectively, passed ordinances affecting an employer’s ability to inquire into a job applicant’s criminal history. Baltimore City: Employers covered are those with 10 or more full-time employees. The ordinance prohibits inquiry into a job applicant’s conviction history until after a conditional offer of employment. Ironically, a “conditional offer” is defined as an offer that is conditioned solely on 1) the results of the employer’s subsequent inquiring into or gathering information about the applicant’s criminal record; or (2) some other contingency expressly communicated to the applicant at the time of the offer. The ordinance does not modify or waive any requirements and limitations of any Federal or State law on access to or the use of criminal records. Additionally, the ordinance does not apply to facilities servicing minors or vulnerable adults. Employers should take note that any person aggrieved by an alleged violation of the ordinance may file a complaint with the Baltimore Community Relations Commission. The Commission may award: (1) back pay for lost wages caused by the violation; (2) reinstatement; (3) compensatory damages, which may include: (i) compensation for humiliation, embarrassment, and emotional distress; and (ii) expenses incurred in seeking other employment; and (4) reasonable attorney’s fees. Any employer who violates the ordinance is guilty of a misdemeanor and, on conviction, is subject to a fine of not more than $500 or imprisonment for not more than 90 days or both fine and imprisonment for each offense. Well, that leaves me with the question: is an employer required to disclose to an applicant that it was criminally charged for violating this ordinance? Montgomery County: The ordinance covers employers that have 15 or more full-time employees. Employers may not conduct an investigation of an applicant’s conviction history until after the conclusion of the first interview. Employers are permitted to ask follow-up questions about an applicant’s criminal history voluntarily disclosed by the applicant and questions about the applicant’s employment history shown on the applicant’s resume. If the employer intends to rescind a conditional offer, the employer must notify the applicant of the intention to rescind the offer and state the items that are the basis for the intention to rescind the offer. The employer must provide the applicant with a copy of the background check, specify the disqualifying information and give the applicant seven days to review the information. An applicant who finds false information or mistaken identity in the report is provided an opportunity to respond with evidence proving the mistake within seven days. Applicants may file a complaint with the director of the human rights commission. Job applicant complainants are not provided with damage awards, however, a civil penalty of up to $1,000 is slapped onto an employer who violates the law. Exemptions are provided for employers hiring for a position that requires a federal government security clearance. The law also makes exceptions for any positions currently required by state or federal law to have completed background checks, like childcare workers, teachers, and those working with vulnerable populations. The ordinance went into effect on January 1, 2015. Prince George’s County: This ordinance applies to employers with 25 or more full-time employees in the County. Similar to Montgomery County, an employer is not permitted to inquire about a job applicant’s arrest or conviction record until after a first job interview. In making an employment decision based on a person’s record, employers are only allowed to consider offenses that specifically demonstrate unfitness for the desired position. If an employer decides to rescind an offer based on the applicant’s criminal record, the employer must notify the applicant of its decision, specify the information on which its decision is based and provide copy of the criminal background check to applicant.

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Contract Drafting Tips for Maryland Businesses

[youtube id=”d8uHGmHZQD0″ width=”600″ height=”400″] Employers are always looking for new ways to be more cost effective and efficient. One area in which companies often try to save money is in the drafting of legal documents. They don’t want to pay fees for standard documents like employment agreements, employee handbooks, or non-compete agreements. They try to keep it simple and avoid what they perceive as legal mumbo-jumbo. However, drafting legal documents is not nearly as easy as it looks.  Good legal drafting requires understanding the business issues, strong writing skills and a thorough knowledge of Maryland employment law.  You can endanger your company with sloppy contract language.

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The Fairness for All Marylanders Act

The Fairness for All Marylanders Act of 2014 added gender identity to the list of protected classes against which employment discrimination is prohibited. Currently, under Maryland law, the complete list of protected classes include: race, color, religion, sex, age, national origin, marital status, sexual orientation, gender identity, genetic information, and disability. Under The Fairness for All Marylanders Act, “gender identity” is defined as: “The gender-related identity, appearance, expression, or behavior of a person, regardless of the person’s assigned sex at birth, which may be demonstrated by: (1) consistent and uniform assertion of a person’s gender identity; or (2) any other evidence that the gender identity is sincerely held as a part of the person’s core identity.” Notably, Maryland employers are not prohibited from establishing and requiring an employee to adhere to reasonable workplace appearance, grooming, and dress standards that are directly related to the nature of the employment of the employee and that are not precluded by any provision of state or federal law, as long as the employer allows the employee to appear, groom, and dress consistent with the employee’s gender identity. The Maryland Commission on Civil Rights (MCCR) serves as the enforcement agency for these laws.

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Attorney Fees for Employers in a Lawsuit

[youtube id=”k0vxzIr_c8Q” width=”600″ height=”400″] Many employers believe that if they get involved in a lawsuit and win, then the loser has to pay the employer’s attorneys’ fees.  The unfortunate reality is that in most cases, that is not true.  In most employment lawsuits, the deck is stacked against the employer when it comes to attorneys’ fees.  For example, if an employee sues an employer for unpaid wages or discrimination and wins, the employee can recover his or her attorneys’ fees from the employer.  If the employer wins those same lawsuits, however, it does not get to recover its attorneys’ fees from the employee. There is one area where the attorney fee “playing field” is equal: written agreements.  An employer may insert into its written agreements that if the employer prevails in litigation, the loser must pay the company’s reasonable attorneys’ fees.  Common examples are non-compete agreements.  If an employee leaves and violates his or her non-compete, a well-drafted agreement will provide that an employee who loses that lawsuit must pay the company’s legal fees.  The same applies to confidentiality agreements, employment agreements, severance agreements, and for independent contractors, contractor agreements.  A company’s contracts with its vendors and customers also should provide that the employer can recover your attorneys’ fees if it is forced to sue the other party, and wins. Consequently, it is crucial to have an experienced Maryland employment law firm review your company’s contracts — to probe for this issue and a variety of other red flags.  At Luchansky Law, our experienced Maryland employment lawyers review companies’ existing agreements and suggest improvements.  We also draft new contracts for companies that don’t yet have them – such as Employee Handbooks, Separation Agreements and Releases, Vacation Policies, and Non-Compete Agreements.  If your company is using contracts that have not been reviewed by a lawyer, or if you need new written agreements to be drafted, contact the experienced Maryland employment lawyers at Luchansky Law.

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Employee Handbooks in Maryland

[youtube id=”hvigxVkAEH8″ width=”600″ height=”400″] As advisors to Maryland business owners and managers, we have seen many legal problems avoided in the workplace by a well-drafted employee handbook.  There is no legal obligation for employers to issue their employees a handbook but, westrongly recommend it for several important reasons: First, employee handbooks explain company policies and procedures.    Second, employee handbooks communicate employer expectations.    Third, all employees receive fair and equal treatment when employee handbook policies are implemented. Finally, employee handbooks can be crucial if an employer needs to defend against legal claims by past employees alleging wrongful termination.     When an employee handbook is properly prepared, it benefits both the employer and the employees, enhancing employee morale and minimizing the risk of employment related litigation.  But if employment policies are poorly drafted or if an employer implements a generic “form” manual, those policies can not only frustrate employees, but they can actually serve to increase the employer’s exposure to litigation. We advise spending time choosing your policies and writing your manual, and reviewing it with your legal counsel to ensure that your goals are achieved and that your policies are in compliance with both Maryland and Federal law.   If you have any questions or would like assistance in drafting or reviewing your employee handbook, please contact the Maryland employment lawyers at Luchansky Law.  

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Vacation Policies

[youtube id=”H-Rf6GCYI8M” width=”600″ height=”400″] Employers are often unclear as to their obligations to pay employees for accrued vacation-time at the end of employment.  The reason for this confusion is understandable, as Maryland has unique laws on this issue which are counterintuitive and which expose unsuspecting employers to substantial liability. Unused vacation leave constitutes a “wage” under Maryland law.  Accordingly, the default rule is that, upon termination of employment, employees are entitled to full payment for all of their accrued leave.  When employers fail to pay employees for their accrued vacation leave, Maryland law provides that employees can sue their employers for three times the amount of the leave owed, plus collect for all of their attorneys’ fees.  However, Maryland employment law also provides a simple escape for employers.  Maryland employers are not required to pay accrued leave when they simply provide employees with a written policy defining the leave benefits and which expressly provides that accrued leave is not payable upon the conclusion of employment. The Maryland employment lawyers at Luchansky Law work closely with employers to structure personnel policies which will carry out employers’ goals and minimize their exposure to liability.  Contact us today to discuss how we can implement policies to help protect your business.

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