Bill Positions

Bill Number: SB 418

Bill Title: Labor and Employment - Maryland Wage and Hour Law - Damages

Bill Sponsor(s): Sen. Lenett

Subject: Workplace Regulations

Committee: FIN

Bill Summary: This bill would have modified the Damages provision of the Maryland Wage and Hour Law to make damages and attorneys' fees for unpaid minimum wage or overtime wages mandatory instead of permissable.

History: In 2009 this bill (SB 452) died in the Finance Committee without a vote. In 2010 SB 418 received an UNF report by the Senate Finance Committee.

Chamber Position: Oppose

Position Summary: The bill would have required imposition of a punitive penalty without any demonstration that the employer willfully violated the act. The penalty was clearly excessive and not tailored to the nature of the violation. Federal law provides for a liquidated damage provision, but the penalty is only a doubling of the unpaid wage amount, and the court may decline to impose a penalty if the employer acts in good faith. This legislation went far beyond what is available under Federal law. 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.