Employment Law Update: Upcoming Maryland Employment Law Changes for 2025
What Employers Need to Know
Date: January 16, 2025
By:
Rafiq R. Gharbi
1. New Licensure Requirements for Security Guards
Effective January 1, 2025, Maryland businesses or individuals employing security services or loss prevention personnel must license these employees as security guards through the Maryland State Police. This new requirement includes a “Security Guard Employer” status, necessitating online registration and proof of insurance submission to the Maryland State Police Licensing Division.
2. Restrictions on Non-Compete Agreements for Healthcare Workers
Starting in July 2025, Maryland will implement stringent restrictions on non-compete agreements for healthcare professionals. For those earning less than $350,000 annually, non-compete provisions will be entirely prohibited. For healthcare professionals earning more than $350,000 per year, non-compete agreements will be limited to a duration of one year and cannot restrict employment within a 10-mile radius of their previous work location. This change follows last year’s limitations on non-compete agreements for veterinary professionals and reflects a broader trend toward limiting restrictive covenants at the state level.
3. Family and Medical Leave Insurance (FAMLI) Program Updates
The Family and Medical Leave Insurance (FAMLI) Program is set to provide paid leave benefits to Maryland workers, funded by contributions from both employees and employers. Contributions will be required from companies with 15 or more employees, while smaller businesses will be exempt. Covered employers are slated to begin making contributions in July 2025, with the Maryland Secretary of Labor expected to announce the contribution rates by February 2025. That said, given the program’s history of delays, the Maryland General Assembly may alter the implementation schedule once again. Employers should stay tuned for updates to ensure they are prepared for these changes.
Effective January 1, 2025, Maryland businesses or individuals employing security services or loss prevention personnel must license these employees as security guards through the Maryland State Police. This new requirement includes a “Security Guard Employer” status, necessitating online registration and proof of insurance submission to the Maryland State Police Licensing Division.
2. Restrictions on Non-Compete Agreements for Healthcare Workers
Starting in July 2025, Maryland will implement stringent restrictions on non-compete agreements for healthcare professionals. For those earning less than $350,000 annually, non-compete provisions will be entirely prohibited. For healthcare professionals earning more than $350,000 per year, non-compete agreements will be limited to a duration of one year and cannot restrict employment within a 10-mile radius of their previous work location. This change follows last year’s limitations on non-compete agreements for veterinary professionals and reflects a broader trend toward limiting restrictive covenants at the state level.
3. Family and Medical Leave Insurance (FAMLI) Program Updates
The Family and Medical Leave Insurance (FAMLI) Program is set to provide paid leave benefits to Maryland workers, funded by contributions from both employees and employers. Contributions will be required from companies with 15 or more employees, while smaller businesses will be exempt. Covered employers are slated to begin making contributions in July 2025, with the Maryland Secretary of Labor expected to announce the contribution rates by February 2025. That said, given the program’s history of delays, the Maryland General Assembly may alter the implementation schedule once again. Employers should stay tuned for updates to ensure they are prepared for these changes.
2025 promises to be a year of significant change for Maryland employers. By understanding and preparing for these new regulations, businesses can ensure compliance and avoid potential legal pitfalls. Stay informed and proactive to navigate these changes successfully. For the latest updates and detailed guidance, keep an eye on Whiteford’s Employment Law Updates.
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.