Bill Positions

Bill Number: SB 419

Bill Title: Labor and Employment - Maryland Wage and Hour Law - Criminal Penalties

Bill Sponsor(s): Sen. Lenett

Subject: Workplace Regulations

Committee: FIN

Bill Summary: This bill would have increased criminal penalties for violations of specified wage and hour laws. It would have incresased the maximum fine for a first violation from $1,000 to $2,500. It would also have established that each occurrence of a specified violation for a specified period is a separate offense.

History: In 2009 this bill (SB 451) died in the Finance Committee without a vote. In 2010 SB 419 also died in the Senate Finance Committee without a vote

Chamber Position: Oppose

Position Summary: In the bill, the criminal penalties, unlike those under the federal statute, were not limited to willful violations. The wage/hour law is highly technical in some areas, and there are situations where it is not clearcut how employees must be treated (the white collar exemptions are one such area where courts disagree as to exactly which employees are covered by the exemption). In those cases, it is necessary to have the dispute settled in court – a process that can take months, if not years. Under the proposed amendment, an employer attempting to comply in good faith with the law, but makes a mistake as to an employee’s classification would have been subject multiple criminal penalties. For these reasons, the Maryland Chamber opposed this bill.

Position Statement: To view the Chamber's complete position statement, click here (pdf).

Chamber Staff: Allyson Black

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