Bill Positions

Bill Number: HB 404

Bill Title: Labor and Employment - Wage Payment and Collection - Order to Pay Wages

Bill Sponsor(s): Chair, ECM (By Request - DLFR)

Subject: Workplace Regulations

Committee: ECM

Bill Summary: This bill gives the Commissioner of Labor and Industry the right to judge in an administrative procedure when a claim is made for failure to pay wages up to $3,000.

History: In 2010 this bill was enacted as Chapter 151.

Chamber Position: Oppose

Position Summary: It is inappropriate for the Department of Labor to function in a judicial capacity to address an issue that is currently being handled through other judicial procedures, such as small claims court.

The previous process had a built-in system to incentivize the Commissioner to pursue only meritorious actions (i.e., that the case needs to go before a neutral fact-finder and the Office of the Attorney General (OAG) does not need to utilize resources bringing cases with no merit). The process proposed by HB 404 removes this check on the arbitrary exercise of the Commissioner's power. Under this law, there is nothing to prevent the Commissioner from issuing an order in every case, with the hope that the notice to the employer will go astray or the employer will miss the deadline for contesting. If the employer does contest a meritless case, the Commission can simply not challenge the employer's petition. For these reasons, the Chamber opposed this bill.

Position Statement:

Chamber Staff: Allyson Black

General Assembly: Click here to view the bill on the Maryland General Assembly's website.