Summary of July 2025 Labor Law Updates for Baltimore, Maryland
Welcome to your July 2025 Maryland employment law roundup, brought to you by the Baltimore team at HKM Employment Attorneys. Whether you’re HR, a business leader, or an employee, stay informed of critical changes—covering court rulings, wage updates, leave programs, and more—to ensure workplace compliance and readiness.
These July 2025 developments highlight significant shifts in Maryland’s employment law landscape—from wage policy and contract restrictions to paid-leave delays and judicial refinements on compensability. Employers, HR professionals, and employees should update policies, training, and systems accordingly. For tailored guidance or compliance assistance, please contact HKM Employment Attorneys at https://hkm.com.
Child Support arrearage to Work Pilot Program — Legislation
Date: July 1, 2025
Summary: House Bill 1126 (Chapter 579) took effect on July 1, 2025, establishing a pilot program within the Maryland Department of Labor to connect unemployed individuals who are behind on child support with employment opportunities. The Department must report its findings and recommendations by July 1, 2026.
Implications: Maryland employers and workforce agencies should be aware of the pilot, as it may involve hiring referrals. The program could reduce barriers for participants and benefit businesses seeking motivated employees.
Minimum Wage Adjustments — Legislation
Date: July 1, 2025
Summary: Maryland’s statewide minimum wage continues at $15.00 per hour for all employers, regardless of size. However, Montgomery County increased its tiers: employers with 51+ employees now must pay $17.65; those with 11–50 employees, $16.00; and those with 10 or fewer, $15.50.
Implications: HR departments, particularly in Montgomery County, should update payroll systems and wage notices to reflect these new rates and ensure compliance starting July 1.
Restrictions on Non-Compete Agreements in Healthcare — Legislation
Date: July 1, 2025
Summary: As of July 1, stringent restrictions on non-compete agreements for healthcare professionals took effect. Non-competes are now prohibited for professionals earning under $350,000 annually. For those above that threshold, non-compete terms are limited to one year and a 10-mile radius.
Implications: Employers in the healthcare sector should review and revise employment contracts, offer letters, and restrictive covenant templates to avoid enforcement issues. Alternative retention strategies—like robust confidentiality clauses or non-solicitation terms—are advisable.
FAMLI (Paid Family & Medical Leave Insurance) Program Delay — Legislation
Date: Effective July 1, 2025 (amendments enacted)
Summary: Legislation that took effect July 1 further delays Maryland’s FAMLI program. Contributions, originally set for July 2025, are now delayed until January 1, 2027. Benefit payments, previously slated for January 2026, are now expected no later than January 3, 2028. The Department of Labor will determine the contribution rate by May 1, 2026.
Implications: Employers should note the delay and pause any FAMLI-related payroll deductions or program preparations. Planning for implementation should be revisited in 2026.
Maryland Supreme Court on “De Minimis” Wage & Hour Claims — Court Ruling
Date: July 3, 2025
Summary: In Martinez v. Amazon.com Services, LLC, the Maryland Supreme Court held that the “de minimis non curat lex” doctrine applies to claims under Maryland’s Wage & Hour Law and Wage Payment and Collection Law. Minor, negligible work—even if unrecorded—may be deemed non-compensable, similar to the federal standard.
Implications: Employers may now cautiously interpret small, unrecorded time differences—such as brief delays after clock-out—as potentially non-compensable. However, employers should still document time policies clearly and avoid encouraging untracked work.
State Hiring Freeze and Workforce Reduction Measures — Executive Action
Date: Effective July 1, 2025
Summary: Governor Wes Moore announced a hiring freeze across most state agencies starting July 1, 2025, running through July 2026. This includes potential voluntary buyouts and elimination of non-critical vacant positions. Exemptions include the University system, courts, and essential care functions.
Implications: Public-sector HR teams and employees should prepare for staffing constraints, help manage morale, and negotiate details through unions. Agencies must also prioritize critical roles amid fiscal pressures.
Conclusion: Looking Back on Maryland Labor Law Updates from July 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.
