Bill Positions

Bill Number: SB 694

Bill Title: Labor and Employment - Wage Payment and Collection Law - Definition of Wage

Bill Sponsor(s): Senator Lenett

Subject: Workplace Regulations

Committee: FIN

Bill Summary: This bill expands the defintion of "wage" to include unpaid overtime as "wages due" at the time of termination under Maryland's Wage Payment and Collection (WPCL) Statute. Additionally, the employee may recover three times the unpaid wages, plus attorney's fees, if the failure to pay the wages due at termination was not based on a ”bona fide dispute."

History: In 2010 this bill was enacted into law as Chapter 99.

Chamber Position: Oppose

Position Summary: This legislation allows an employee who prevails in a lawsit angainst an employer for failure to pay wages to potentially receive three times the unpaid overtime they claim they were due--more than they could get under federal law, which limits penalties to twice the unpaid overtime. Additionally, employees will have the ability to sue for three years of unpaid overtime, whereas federal law limits claims to two years unless it is in "willful" violation. Federal courts have concluded that WPCL is intended to deal with an employer's promise to pay wages, as opposed to wages that are due because of a statutory mandate. Additionally, most violations are readily addressed by the federal overtime law, which already provides for liquidated (i.e, double) damages unless the failure to pay overtime wages is in good faith.

The "treble damages" statute is a solution chasing a problem that doesn't exist and makes Maryland more punitive than any of the other surrounding jurisdictions with respect to overtime claims. This will likely put Maryland at a competitive disadvantage with the surrounding jurisdictions, and motivate employers to locate in those surrounding jurisdictions rather than Maryland. 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.