Maryland’s Mini-WARN Act Takes Effect: Employers Must Comply

The Maryland Department of Labor (MDOL) has finalized regulations for the Maryland Economic Stabilization Act, commonly referred to as the “mini-WARN Act,” which will take effect on October 13, 2025. This law mandates that employers provide advance notice of mass layoffs or reductions in force (RIFs) in specific situations. Although the requirement for notice was established in 2020, enforcement had been delayed until the release of these comprehensive regulations.

Mandatory Compliance for Employers

The mini-WARN Act applies to employers with at least fifty employees who have operated an industrial, commercial, or business enterprise in Maryland for over a year. Employers are now required to give sixty days’ written notice when a reduction in operations occurs, which is defined as either:

• Relocating part of an operation that results in a reduction of at least 25 percent or 15 employees, whichever is greater.
• Shutting down all or part of a workplace, leading to a similar reduction over any three-month period.

For instance, if a company with one hundred employees lays off fifteen, it does not trigger the law, as the reduction does not meet the threshold of 25 percent.

Certain employee categories are excluded from the fifty-employee count, including those working fewer than twenty hours per week or those who have been employed for less than six months. Additionally, the act does not apply to reductions solely resulting from labor disputes, temporary workplaces, or seasonal factors determined by the MDOL.

Details of the Regulations

Employers must notify affected employees, their representatives, the State Dislocated Worker Unit, and local government officials. If the workplace spans multiple jurisdictions, notice should be sent to the locality where the most taxes were paid in the prior fiscal year. This requirement also extends to remote workers, with the entire state considered a single workplace for coverage analysis.

The notice must include essential information such as the name and address of the affected workplace, contact details for a company representative, whether the reduction is temporary or permanent, and the anticipated start date of the layoff or closure.

Shortened notice may be permissible if employers can demonstrate that they were actively seeking capital or business that could have mitigated the layoffs, or if the reductions were due to a natural disaster. Unlike the federal WARN Act, Maryland does not offer an exception for unforeseeable business circumstances.

In cases of business sales, both the seller and purchaser must issue the required notices, ensuring that no employment loss occurs solely due to the transfer. Non-compliance with the mini-WARN Act may lead to civil penalties of up to $10,000 per day, along with an order compelling compliance.

The final regulations, released without substantive changes from earlier proposals, clarify definitions related to remote workers and telework. The MDOL has also revised its outreach protocols to better assist employers facing potential layoffs.

Employers are advised to review their workforce strategies, including remote and telework arrangements, to ensure alignment with the new requirements. As the MDOL continues to provide guidance and answer frequently asked questions, companies should prepare for the upcoming regulations to avoid penalties and ensure compliance.