Maryland businesses face a variety of legal hurdles in employment law. Most common labor issues include compliance with wage regulations to managing workplace discrimination claims.
Employment law affects nearly every aspect of a business’s operations. At Flood Law, we believe that understanding these challenges is important to avoid costly disputes and maintain a productive workforce.
This blog will discuss the most common employment law issues Maryland businesses encounter. We will also cover how business owners can address them effectively.
Wage and Hour Disputes
Wage and hour disputes are among the most frequent labor legal issues. Employers must comply with both federal and state wage laws, including the Maryland Wage Payment and Collection Law (MWPCL) and the Maryland Wage and Hour Law (MWHL).
Key concerns include:
- Overtime Pay: Maryland businesses must adhere to state laws requiring overtime pay for eligible employees who work more than 40 hours in a workweek. Misclassifying employees as exempt from overtime can lead to legal action.
- Minimum Wage Compliance: Maryland’s minimum wage often exceeds the federal minimum wage. Businesses must ensure they’re paying the correct rate to avoid penalties.
- Pay Transparency: Employers must provide accurate wage statements and keep detailed payroll records. Failure to do so can result in fines or lawsuits.
Proactively reviewing payroll practices and conducting audits can help businesses remain compliant and reduce the risk of disputes.
Workplace Discrimination and Harassment
Workplace discrimination and harassment claims can severely damage a business’s reputation and financial stability. In Maryland, employees are protected under both federal laws, like Title VII of the Civil Rights Act, and state laws, such as the Maryland Fair Employment Practices Act (FEPA).
Common issues include:
- Discrimination: Claims often arise from perceived unfair treatment based on race, gender, religion, age, disability, or other protected characteristics.
- Sexual Harassment: Businesses must create policies to prevent and address sexual harassment in the workplace. Employers are responsible for maintaining a safe and respectful environment.
- Retaliation: Employees who file complaints are protected from retaliation under state and federal laws. Retaliatory actions can lead to additional legal consequences.
To minimize risks, businesses should implement comprehensive anti-discrimination and harassment policies, train employees regularly, and provide clear reporting procedures.
Employee Misclassification
Misclassifying workers as independent contractors instead of employees is a growing concern in Maryland. The distinction matters because employees are entitled to benefits, wage protections, and workers’ compensation, whereas independent contractors are not.
Misclassification can result in penalties where businesses may face fines and back payments for taxes and benefits. Owners may also face legal disputes as misclassified workers can sue for unpaid wages, overtime, and benefits.
The IRS and Maryland state agencies use specific criteria to determine a worker’s classification. Employers should consult legal counsel to ensure they’re correctly classifying their workforce.
Leave Policies and Accommodations
Maryland businesses must adhere to state and federal laws regarding leave and workplace accommodations. Employers often struggle to balance operational needs with compliance.
Key considerations include:
- Family and Medical Leave Act (FMLA): Eligible employees are entitled to unpaid leave for specific medical and family reasons. Companies must understand who qualifies and ensure proper leave management.
- Paid Sick Leave: Maryland’s Healthy Working Families Act requires employers to provide paid sick leave to qualifying employees. Mismanagement of these policies can lead to legal challenges.
- Disability Accommodations: Under the Americans with Disabilities Act (ADA), businesses must provide reasonable accommodations for employees with disabilities unless it creates an undue hardship
.
Clear communication and detailed record-keeping are essential for managing leave and accommodations effectively.
Health and Safety Regulations
Ensuring workplace safety is another critical area for Maryland businesses. The Occupational Safety and Health Administration (OSHA) enforces federal safety standards, while the Maryland Occupational Safety and Health (MOSH) handles state-level compliance.
Common challenges include:
- Workplace Hazards: Employers must identify and address potential hazards to prevent workplace injuries.
- Health Protocols: Businesses are required to implement health measures to protect employees, such as sanitation and social distancing.
- Reporting Requirements: Failure to report workplace injuries or illnesses can result in penalties.
Regular safety audits and employee training programs can help businesses stay compliant and reduce workplace accidents.
Last Words
Employment law challenges can be overwhelming for Maryland businesses. This is the reason why understanding and addressing these issues proactively is critical to long-term success. Whether it’s managing wage disputes or ensuring proper worker classification, taking the right steps can protect businesses from costly legal battles.
For professional guidance tailored to your business’s needs, consider partnering with experienced legal counsel. Flood Law offers trusted advice to help Maryland businesses overcome employment law challenges and build a compliant, resilient workplace.
