MSLaw Blog

A slew of new employment laws take effect Tuesday in Maryland related to job postings, wage statements, discrimination, prevailing wages and workplace fraud, among other topics. Notably, Maryland employers should be apprised of the following: Salary Transparency in Job Postings As discussed in greater depth earlier this year, Maryland employers are now required to include the “wage range” for all open and posted job positions. “Wage range” is defined as the minimum and maximum hourly rate or salary for a position, set

As of Oct. 1, health care providers in Maryland must maintain patient medical records and laboratory and X-ray reports for at least seven years after the records and reports are created. The new law increases the record-retention requirement from five years. For a minor patient, records and reports must be maintained until the minor patient reaches the age of majority plus seven years, which for most patients will be when they are 25 years old. Health care providers, which include hospitals

The Commonwealth of Massachusetts will offer a limited tax amnesty for certain “eligible taxpayers” from Nov. 1 through Dec. 30. “Eligible taxpayers” can forward and bring their tax liabilities up to date and receive a penalty abatement. This group includes businesses, individuals, trusts and estates. Taxpayers that are currently in resolution with the Massachusetts Department of Revenue have pending cases or open collection cases will qualify for amnesty along with taxpayers that have unfiled returns or underreported returns.  Amnesty claims must be

The CMS Innovation Center (CMMI) continues to prepare for its next episode-based alternative payment model, the Transforming Episode Accountability Model, or TEAM for short. This five-year model will offer both incentive payments for meeting a pre-determined target price and downside risk to TEAM hospitals that exceed that target price. TEAM will be a mandatory program for almost 750 hospitals selected by CMMI in specific geographic areas, including Washington, D.C., northern Virginia, Connecticut, Vermont and the greater New York City/New Jersey area.

The U.S. District Court for the Northern District of Texas issued its decision Tuesday that the business world had been awaiting with bated breath, striking down the Federal Trade Commission's (FTC) final rule making unlawful virtually all noncompete agreements. Unlike the preliminary injunction granted by the court last month, which was limited only to the parties, the court this week “set aside” the FTC rule, which now may not be enforced by the federal agency anywhere in the nation. The Court’s

We are less than 100 days away from Election Day 2024, so it is critical for employers to ensure that they are following applicable voting leave laws in the states where they have employees. Not all states require employers to provide employees with leave to vote. But several require employers to provide employees with one or more hours of voting leave, and a vast majority of those states require employers to pay employees for that time. Below is a roundup of

As record-high temperatures enveloped most of the U.S. earlier this month, the federal Occupational Safety and Health Administration (OSHA) released a proposed rule for comprehensive heat injury and illness prevention. The proposed rule, “Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings,” was many years in the making and would affect employers throughout the United States. In the interim, OSHA and various state regulators that have not already adopted their own laws are issuing citations under Section 5(a)1

The Virginia Business Professional and Occupational License (BPOL) is a local level tax levied on businesses’ gross receipts. Rates typically range from $0.03 to $0.58 per $100 of gross receipts, depending on the locality and industry classification. The tax is calculated based on the previous year’s receipts and filed annually. As a turnover tax, BPOL generally does not allow deductions for business expenses, and exemptions typical for sales and use taxes do not apply. However, there are certain exclusions that

In a unanimous decision, the Supreme Court of the United States recently determined in Connelly v. U.S. that the value of a life insurance policy must be included in the fair market value of a closely held business for purposes of determining the value of a decedent’s interest. Further, the Court stated that any contractual obligation of the business to re-purchase a decedent’s interest does not create an offsetting liability to a life insurance policy. This decision is significant for

On July 3, 2024, the U.S. District Court for the Northern District of Texas issued a limited stay and preliminary injunction of the Federal Trade Commission's (FTC) final rule making unlawful virtually all non-compete agreements. This is an important decision and a win for business groups seeking to invalidate the rule. However, it does not put an end to the rule, as the court specifically rejected the request by plaintiffs for a nationwide injunction, instead limiting the application of the

Louisiana recently passed new legislation prohibiting employers from including nondisclosure provisions in agreements with employees that prospectively forbid employees from disclosing or discussing certain facts or claims concerning sexual harassment. Specifically, effective August 1, Louisiana employers will be prohibited from including in agreements with employees a “nondisclosure clause,” defined as “an agreement between an employee and employer that prevents, or has the effect of preventing, an employee from disclosing or discussing a hostile work environment, allegations of a hostile work environment,

The Court of Appeals for the Federal Circuit (CAFC) continues to redefine the Court of Federal Claims’ (COFC) ability to hear cases affecting all stages of the federal procurement process. Last year alone witnessed decisions in which the CAFC established the Tucker Act’s “interested party” analysis as a matter of statutory standing only, recharacterized its long-standing waiver rule for solicitation defects as a non-jurisdictional claims-processing rule  and rejected the notion that the Contract Disputes Act’s “sum certain” requirement could be used

More than a dozen business groups last month filed a much-anticipated lawsuit seeking to block the U.S. Department of Labor’s (DOL) new final rule that will significantly raise the minimum salary thresholds for exempt employees under the Fair Labor Standards Act (FLSA). The final rule increases the minimum annual salary threshold for exempt executive, administrative, and professional (EAP) employees, as well as outside sales and computer employees from $35,568 per year to $43,888 per year July 1. Then, on Jan. 1,

The Environmental Protection Agency (EPA) chooses criminal, civil or administrative enforcement based on its assessment of the severity of violations. A significant development in EPA’s enforcement strategy has been the increased integration and collaboration between its civil and criminal enforcement offices. To further its enforcement program, the EPA recently introduced the Strategic Civil-Criminal Enforcement Policy. This policy replaces previous guidelines, is effective immediately and according to the EPA aims to address modern environmental challenges more effectively. The key takeaways from this policy

Maryland has long been a solar-friendly state, and the Brighter Tomorrow Act, signed into law by Gov. Wes Moore last month, will expand access and adoption of solar energy. The legislation is both a supportive and forward-looking policy aimed at enhancing sustainability, economic growth and technological advancement within Maryland. Some of the key takeaways from the act are: Creating the Small Solar Energy Generating System Incentive Program by the Maryland Public Service Commission (PSC). The program will allow eligible solar energy generating

Maryland will soon have some of the strictest data protection and privacy requirements in the nation after the Maryland Online Data Privacy Act of 2024 (MODPA) was signed into law by Gov. Wes Moore last week. The law expands the scope of businesses’ personal data protection obligations and consumer privacy rights, offering protections that are aligned with contemporary concerns about data privacy and consumer autonomy. The MODPA goes into effect Oct. 1, 2025 and has a cure period that extends through April

Under new legislation amending Maryland’s Equal Pay for Equal Work Law, employers in the state will be required, as of Oct. 1, to include certain wage information in both public and internal job postings and advertisements. This includes any solicitation intended to recruit applicants for a specific available position, such as recruitment done directly by an employer or indirectly through a third party. These new disclosure requirements will apply to any position that will be physically performed, at least in

The Supreme Court last month made it easier for employees who are involuntarily transferred from one position to another to pursue employment discrimination claims under Title VII of the Civil Rights Act of 1964. Traditionally, for a transfer to constitute a sufficient change to the terms and conditions of employment to establish a discrimination claim, an employee needs to demonstrate that they were left at a significant disadvantage because of the transfer. In Muldrow v. City of St. Louis, Missouri, the

Schools that have been anxiously awaiting the U.S. Department of Education’s final regulations enforcing and interpreting Title IX need wait no longer. The department issued final regulations last week that will govern sex discrimination complaints relating to conduct that occurs after Aug. 1, 2024. The new regulations include significant changes from prior Title IX regulations issued in 2020. The final regulations, among other changes, raise the bar for schools’ compliance, change the definition of sexual harassment, expand protections for LGBTQ+ and

Miles & Stockbridge attorneys participated today in a call with the U.S. Chamber of Commerce for an update on litigation the Chamber has filed to stay or enjoin the effectiveness of the FTC rule banning almost all employee non-competes. (Click here to read our summary of the rule.) Here are some key takeaways from the call: The Chamber filed a lawsuit in U.S. District Court for the Eastern District of Texas challenging the rule and seeking to stay or enjoin the effectiveness of

As we previously wrote when the Pregnant Workers Fairness Act (PWFA) went into effect in June 2023, the law requires most employers with 15 or more employees to provide “reasonable accommodations” for a qualified employee’s known limitations related to pregnancy, childbirth or related medical conditions unless the accommodation will cause the employer an undue hardship. Last week, the Equal Employment Opportunity Commission (EEOC) issued a Final Rule to implement the PWFA. The Final Rule clarifies that, to be protected under the

The Department of Labor (DOL) on Tuesday increased the salary thresholds for the Fair Labor Standards Act (FLSA) white collar exemptions from overtime pay requirements. On July 1, the minimum annual salary threshold for an exempt employee will be $43,888 ($844 per week), up from $35,568 ($684 per week). This threshold will increase to $58,656 ($1,128 per week) on Jan. 1, 2025. To qualify for the FLSA’s highly compensated employee exemption, employees will now have to earn $132,964 per year

The Federal Trade Commission (FTC) on Tuesday, in a 3-2 vote, approved a final rule banning non-competes in almost all employment contexts. This sweeping rule, while not unexpected, has caused quite a stir among employers and workers alike. Here is what employers need to know. Background The rule, which was first proposed in January, comes on the heels of the Biden administration’s 2021 executive order designed to “promote competition in the American economy, which will lower prices for families, increase wages

Miles & Stockbridge’s Labor, Employment, Benefits & Immigration Practice Group presented its 22nd annual Hot Topics in Employment Law seminar April 11 to clients from throughout Maryland and beyond. Topics covered included diversity, equity and inclusion programs, federal and state leave law updates and myriad employment issues raised on a day-to-day basis with human resources professionals, including disability and religious accommodations in the workplace, the impact of changing cannabis and clean slate laws on employers. Here are some highlights from

Companies competing for federal contracting opportunities now have yet another reason to fear their proposals being rejected and their awards getting overturned. A recent decision by the Government Accountability Office (GAO) held that continuous registration in the System for Award Management (SAM) is mandatory throughout the evaluation period for an offeror to be eligible for award, even if a period of lapsed registration is as short as 24 hours. If that were not concerning enough, GAO is not alone in its

A New York law recently went into effect significantly limiting employers’ ability to make inquiries regarding employees’ personal social media accounts. Specifically, the new law makes it unlawful for an employer to request, require or coerce any employee or job applicant to: disclose any username and password, password or other authentication information for accessing a personal account through an electronic device[1]; allow the employer to access the employee's or applicant’s personal account in the presence of the employer; or reproduce pictures, videos or other

U.S. Deputy Attorney General Lisa Monaco delivered keynote remarks March 7 at the American Bar Association’s 39th National Institute on White Collar Crime. In addition to unveiling a new whistleblower pilot program, she discussed the rise of artificial intelligence (AI) and DOJ’s continued effort to fight corruption at the hands of people using AI to further their illegal activities. Just because an unlawful activity is done by or orchestrated with AI does not mean it is not illegal. “Fraud using AI

A federal judge in Vermont last month ruled a plaintiff’s medical marijuana use was not protected by the Americans with Disabilities Act. In Skoric v. Marble Valley Regional Transit District et al., the plaintiff was fired by his employer for failing a random drug test by testing positive for marijuana despite having a valid, state-issued medical marijuana card and being prescribed medical marijuana to treat his chronic pain and depression. In granting the motion to dismiss, the court considered whether the

U.S. Deputy Attorney General Lisa Monaco delivered keynote remarks March 7 at the American Bar Association’s 39th National Institute on White Collar Crime. Emphasizing the need for a culture of compliance, Monaco highlighted the continued importance of existing DOJ programs, including those related to corporate claw backs, acquisition-related disclosures and voluntary self-disclosure. Monaco also announced that the Department of Justice is designing a new whistleblower program that will use monetary rewards to strengthen corporate enforcement efforts and proactively incentivize individuals to

Maryland Comptroller Brooke Lierman issued a letter Feb. 28 to address the challenges and concerns of tax practitioners regarding the policy and procedural changes to pass-through entity (PTE) filings and payments. Most significantly, the comptroller has agreed to provide a one-time waiver for taxpayers who missed electing PTE treatment on the first filing of the year. Background The comptroller said last April that, for tax years beginning after Dec. 31, 2022, PTEs are required to elect (or not elect) to pay tax

The Miles & Stockbridge Health Care Practice Group hosted its inaugural Hot Topics in Health Care Law seminar last month for clients from Maryland and beyond. Miles & Stockbridge health care lawyers kicked off the seminar with a year in review, which covered topics including recent appellate cases and legislation impacting health care, consolidation in the health care market, the current state of Medicare telehealth rules, website tracking technologies and HIPAA breaches and enforcement. The seminar finished with an engaging panel

As the Virginia General Assembly’s session nears its conclusion, lawmakers continue to revise the two-year state budget that may create significant alterations to the state’s current taxing scheme, particularly in the areas of sales and use tax. Background Virginia institutes two forms of sales and use tax: the Retail Sales and Use Tax that is historically limited to sales of tangible personal property and a handful of enumerated services at a rate of 5.3%; and the Communications Sales and Use Tax that is

(A version of this blog post was originally published in September and then published again in January. Funding for several federal agencies will run out Friday night, with funding for the remaining agencies expiring March 8, if Congress does not act.) Shutdowns are inevitably disruptive for federal contractors, but the impact will vary depending on whether the contract is already funded, whether the work is considered “essential,” and whether the contractor requires access to federal facilities or approvals from non-essential federal employees, among

New York Gov. Kathy Hochul in December vetoed a bill passed by the New York Legislature that would have prohibited nearly all noncompete agreements in the state regardless of the context, salary level or job function of the employee signing it. The ban would have applied equally to all employees and managers alike, regardless of rank or position.  In particular, the vetoed bill would have barred employers from imposing contract language that prohibits New York employees or other “covered individuals” from

The Department of Homeland Security (DHS) announced Friday key changes to the H-1B lottery for Fiscal Year 2025, including a beneficiary-centric selection process for H–1B registrations; start-date flexibility for certain H–1B cap-subject petitions; and codification of the agency’s ability to deny or revoke H-1B petitions where the underlying registration or petition contained a false attestation or was otherwise invalid. The United States Citizenship and Immigration Services (USCIS) is authorized to grant up to 85,000 H-1B cap-subject petitions per fiscal year, of

The National Labor Relations Board (NLRB) is chipping away at employment agreements and other restrictive covenants one clause at a time. In a recent memorandum, the General Counsel said she believes restricting employees from holding outside or secondary employment violates federal labor law, and she intends to urge the NLRB’s Democratic-appointee-controlled Board to reach the same conclusion. The General Counsel was providing a regional office advice about the lawfulness of various provisions in a company’s employment agreement when she took issue with

The Department of Homeland Security published a final rule Jan. 31 adjusting the filing fees for applications for immigration benefits submitted to U.S. Citizenship and Immigration Services (USCIS). For most application types — and particularly for most employment-based requests — the fees will increase, in some cases substantially. The new fees will go into effect on April 1 unless implementation is delayed or otherwise impacted due to legal challenges. Notable Changes The most notable changes in the fee structure for common employment-based

Thursday was the deadline for all Washington, D.C., employers to post the new paid family leave notice/poster, which was recently issued by the district’s Department of Employment Services (DOES). The notice must be posted in a “conspicuous place,” and must be provided to employees on or before Feb. 1, 2024. The new notice became effective last October and is identical to the previous notice in effect from October 2022, except the new notice increases the maximum weekly benefit from $1,049

Washington Mayor Muriel Bowser signed legislation earlier this month that would require employers to disclose pay ranges in job postings and prohibit employers from screening prospective employees based on their salary history. The new law will apply to all employers with at least one employee in the District of Columbia, excluding the federal government, and will go into effect June 30, subject to congressional approval. Under existing law, D.C. employers are prohibited from: (1) requiring that employees refrain from inquiring about, disclosing,

The Federal Trade Commission (FTC) announced Jan. 22 annual revisions to the applicable thresholds under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the HSR Act). These revisions will apply to all transactions closing on or after Feb. 21. The new minimum size of transaction threshold has been adjusted upward, from $111.4 million to $119.5 million. Under the HSR Act, the parties to any proposed acquisition of assets, voting securities or non-corporate interests meeting prescribed thresholds must notify the FTC

Two bills took effect in California earlier this month imposing further limitations on restrictive covenants in employment agreements, one of which voids noncompete agreements even if they are signed outside of the state. While noncompete agreements are largely void in California, Senate Bill 699 expands the ways in which employees can challenge noncompete agreements. Specifically, the bill makes any agreement that restricts an employee’s ability to engage in a lawful profession, trade or business unenforceable regardless of where and when it

The Maryland Department of Labor (MDOL) issued proposed regulations last month to the Economic Stabilization Act. Also known as the Maryland Mini-WARN Act, it provides notice requirements and guidance to employers faced with a shutdown of a plant, factory, or office or a major reduction in their workforce. The proposed regulations amend definitions, time and notice requirements to the act and implement compliance and penalty requirements. The public-comment period closed Tuesday, while a public hearing to review the proposed regulations has

The U.S. Department of Labor (DOL) announced a final rule last week revising its guidance to employers and workers to help determine if a worker qualifies as an employee or an independent contractor under the Fair Labor Standards Act (FLSA). The new rule, which was published in the Federal Register on Wednesday and takes effect March 11, rescinds the DOL’s previous Independent Contractor Rule that was published three years ago.  The final rule’s analysis for determining employee or independent contractor status

(A version of this blog post was originally published in September. Congress has until Jan. 19 to approve four separate appropriations bills to keep the government open.) Shutdowns are inevitably disruptive for federal contractors, but the impact will vary depending on whether the contract is already funded, whether the work is considered “essential,” and whether the contractor requires access to federal facilities or approvals from non-essential federal employees, among other considerations. Contractors can minimize the effect of the shutdown by reviewing their

Any acquisition involving a small business government contractor comes with a host of questions concerning what effect, if any, the transaction may have on the small business’s size and status post-closing. Will a firm that certifies as small or for a particular small business socioeconomic status (Woman Owned Small Business, Service Disabled Veteran Owned Small Business (SDVOSB), etc.) pre-closing keep its status even after the deal? In many cases, no. This potential reality leads to more questions. What will become of

Last year continued the trend of rising inflation, interest rates and borrowing costs, as well as cost-of-living increases. With these concerns top of mind, many states continued to increase their required minimum wage rates. Employers should be aware of the following minimum wage increases that took effect at the end of 2023 or the beginning of 2024. Because these increases do not apply to tipped workers and other special classes of employees, and may be superseded by local mandates, employers should

Roughly 20 states and 30 local jurisdictions have implemented paid sick leave laws. Several of these states and jurisdictions amended their paid sick leave policies in 2023, with the amendments taking effect Jan. 1, 2024. Additionally, Minnesota has enacted its first statewide paid sick and safe time law, which also takes effect Monday. Below is a summary of these new or updated laws. California California’s paid sick leave law applies to any employer that employs at least one employee in California

The Supreme Court earlier this month declined to address who has standing to sue a business whose website violates the Americans with Disabilities Act (ADA). In Acheson Hotels, LLC v. Laufer, the justices unanimously remanded the case back to the lower court with instructions to dismiss it as moot, sidestepping an examination of the merits of a case with national implications for hotels and potentially other public accommodations as well.  Background Deborah Laufer is a prolific litigant with physical disabilities and

It’s the most wonderful time of the year, full of holiday cheer but, unfortunately for some employers, also legal risks and potential liability. A company’s annual holiday party, gala or event can quickly turn from a celebration into a headache. That’s why now is a good time for employers to ensure they have policies in place on the overconsumption of alcohol and harassment. Additionally, employers should consider their possible exposure and ways to reduce liability based on the actions of

Maryland health care employers and J-1 physicians who commit to serve the underserved in Maryland and who missed Conrad 30 waiver application deadline Dec. 1 are in luck: The Maryland Department of Health (MDH) has reopened its application period! Physicians who completed graduate medical education in J-1 status now have additional time to secure a clinical service waiver of the two-year home residence requirement to provide medical services in Maryland. MDH received fewer than 30 Conrad waiver applications prior to the