October 2025 Labor Law Updates for Baltimore, Maryland
Welcome to our October 2025 update on Maryland labor law, brought to you by the Baltimore team at HKM Employment Attorneys. This monthly roundup is designed for employees, HR professionals and compliance leaders who want to stay current on Maryland workplace rights and employer obligations under Maryland labor law.
October 2025 brought some significant labor & employment‐law developments in Maryland—from a high‐stakes court ruling affecting government employers to regulatory shifts on mass‐layoff notices and the timeline for state paid-leave implementation. If you have questions about how these changes impact your business, employee rights or compliance obligations, please contact HKM Employment Attorneys (https://hkm.com) for support.
Delay of Maryland Paid Family & Medical Leave Program — Legislation / Regulation
Date: October 1, 2025 (effective)
Summary:
Two statutes that impact the upcoming Maryland Paid Family & Medical Leave Law (sometimes called “FAMLI”) went into effect on October 1, 2025. First, HB 102 (2025) delays the program’s contribution start date (from July 1, 2025, to January 1, 2027) and collection of benefits (from July 1, 2026, to a window between January 1, 2027 and January 3, 2028).
Second, SB 785 (2025) provides that an employer covered by the federal Family and Medical Leave Act (FMLA) may be excluded from the Maryland unpaid parental leave requirement.
Implications:
For Maryland employers: Policies and notices tied to the Maryland FAMLI program must be revised to reflect the new implementation timeline.
For employees: The delay means paid leave under the Maryland state program will not be available until at least January 2027, though unpaid parental leave rules may change depending on employer coverage under FMLA.
HR and benefits teams should monitor forthcoming regulations issued by the Maryland Department of Labor (MDOL) to ensure compliance when the program launches.
Revised “Mini-WARN” / Mass Layoff Notice Regulations — Regulation
Date: October 13, 2025 (regulations effective)
Summary:
MDOL issued final regulations for Maryland’s version of a mass‐layoff/mass‐termination notice requirement (under the Maryland Economic Stabilization Act) effective October 13, 2025.
These regulations update the state “mini‐WARN” notice obligations as to when employers must notify the Dislocated Services Unit, etc.
Implications:
Maryland employers contemplating large layoffs or plant‐closures should review these new regulations immediately to confirm notice obligations (who to notify, timing, required content). Failure to comply could expose the employer to penalties or other enforcement actions by the state. Especially relevant for HR, workforce planning and legal teams supporting large employers in Maryland.
Appellate Court Decision: Local Government Employer Liability for Discrimination — Court Ruling
Case: Joseph Watts v. Prince George’s County
Date: October 29, 2025
Summary:
In this case, the Appellate Court of Maryland held that the state’s Local Government Tort Claims Act (LG TCA) cap for damages (typically $400,000) does not apply to statutory employment discrimination and retaliation claims brought under the Maryland Fair Employment Practices Act (FEPA).
The plaintiff had been awarded about $1.7 million, and the county sought reduction under the LG TCA cap; the court ruled the cap did not apply in this statutory employment‐law context.
Implications:
Public‐sector employers (counties, municipalities, school boards, etc.) in Maryland cannot rely on the LG TCA damages cap to limit their potential financial exposure in employment discrimination/retaliation lawsuits under FEPA.
HR and legal counsel at government entities should review their risk assessments, insurance coverages and internal discrimination/retaliation prevention programs accordingly. For employees, this decision reinforces that statutory rights under Maryland employment law may permit higher damage awards than tort claims under the LG TCA.
Reissued Proposed Regulations for Maryland FAMLI (Claims Chapter) — Regulation
Date: October 28, 2025
Summary:
On October 28, 2025, MDOL reissued proposed regulations for Chapter 04 (“Claims”) of the Maryland Paid Family & Medical Leave Insurance (FAMLI) law.
These regulations largely preserve the earlier framework but include changes that may increase employer concerns (e.g., around benefit year, wage calculation, program eligibility).
Implications:
Although the program is delayed, employers should begin reviewing the proposals now (claims handling, employee notice, wage basis, budgeting for contributions). Employers may choose to implement or modify internal parental/medical leave policies in advance, in expectation of the state program launch. Staying ahead of regulations will help HR teams minimize compliance risk when FAMLI becomes operational.
Conclusion: Looking Back on Maryland Labor Law Updates from October 2025
As Maryland courts issue critical rulings on wage disputes, wrongful termination, and federal-employee protections, your next step shouldn’t just be reading the news—it should be knowing your rights. At HKM Employment Attorneys in Baltimore, our experienced team specializes in advocating for employees across the state on issues from contract violations and unpaid wages to retaliation and whistleblowing claims. Whether you’re a federal worker navigating MSPB appeals or confronting workplace unfairness under Maryland law, we offer strategic legal guidance backed by attentive client care. If recent case outcomes have raised concerns for your job or benefits, contact our Baltimore office to discuss how we can help you protect your workplace rights.
