Consistent with the fresh start that every January 1 gives us, I have identified a few new laws and a few things which every business should put on its resolution list.  The new year presents an important opportunity to assess operations and ensure they are in full compliance with employment laws and evolving legal trends. Staying up to date with these laws is crucial to avoid costly legal battles, fines, and reputational damage.

New Maryland Laws

When you return to work after the winter break, make sure to slow down because starting on the 1st day of 2025, the Maryland Road Worker Protection Act goes into effect with higher fines for speeding through the use of speed cameras. Maryland will now follow a tiered system in work zones speed based on how fast the car was traveling above the speed limit. If you are between 12and 15 mph above the posted limit, the fine is $60. If you are traveling 16-19mph above the limit, the fine is $80. Fines continue to increase with additional speed, up to $500. Be extra cautious when workers are present because if they are, the tiered fine will double, up to a range of $120 to $1000. This law also allows for cameras and additional signage and lights, all to promote the safety of our highway workers.

Also going into effect is a new law requiring businesses who employ individuals for security services to license them as security guards.  Beginning on January 1, 2025, the licensing division will transition all professional license applications from the current paper format to an all-electronic format. You can read more about this change here.

The final major change going into effect with the New Year is that Maryland will require health insurance plans to provide coverage for hearing aids and audiological services for adults. Under this plan, coverage will be capped at $1,400 per hearing aid device per ear and can only be used once every three years, mirroring the coverage for children. Beyond the coverage amount, individuals can purchase more expensive aids or services but will have to pay the additional costs above the maximum coverage out of pocket.  

Maryland Employer New Year Resolutions

Here's a practical checklist of things employers should do at the beginning of the year to protect their organizations.

1. Review Employment Policies and Employee Handbooks

An updated review of the company’s policies and employee handbooks is essential. Employment laws and Court precedents impacting them change frequently, and policies that were written years ago may no longer reflect current legal standards. Some key areas to update may include:

• Harassment  and discrimination policies
• Leave Policies
• Remote work and flexible work arrangements
• Ensure policies are compliant with law where remote workers are living

2. Check Wage and Hour Compliance

Employers must ensure that they are complying with wage and hour laws, including proper classification of employees and independent contractors, payment of overtime, and adherence to minimum wage requirements. This includes:

• Overtime exemptions
• State minimum wage changes
• Recordkeeping requirement and timekeeping policies

3. Verify Compliance with Anti-Discrimination Laws

Workplace discrimination laws continue to evolve, and employers must ensure they are fostering inclusive, non-discriminatory environments. Employers should:

• Conduct anti-discrimination training
• Verify policies capture all of the protected classes
• Eliminate binary pronoun references as applicable
• Review hiring and promotion practices

4. Stay Updated on Health and Safety Regulations

Workplace health and safety laws are always a top priority. Ensuring the safety and well-being of employees not only fosters a positive work environment but also helps avoid costly fines.

5. Check for Changes in State and Local Laws

Employment laws vary widely by state and locality, so employers must be diligent about monitoring changes in the jurisdiction where they operate. Some key areas to review include:

• Paid family and medical leave
• Salary transparency laws in policies and position postings

6. Audit Employee Classification

Misclassifying employees can lead to significant legal problems, including wage disputes and penalties. At the start of the year, employers should conduct an audit to ensure employees are properly classified as exempt or non-exempt under wage and hour laws. This is especially important for:

• Independent contractors vs. employees
• Overtime eligibility

7. Prepare for New Labor and Employment Trends

Each year brings new trends in labor and employment law that employers need to prepare for. 2025 could see new developments in areas such as:

• Employee wellness and mental health
• Artificial Intelligence (AI) in hiring
• Gig economy regulations

Staying on top of evolving employment laws and legal trends is an ongoing responsibility, but the beginning of the year presents a prime opportunity for employers to ensure their policies and practices are fully compliant. By proactively reviewing and updating employment policies, addressing compliance with wage and hour laws, focusing on health and safety, and staying ahead of local and national legal changes, employers can mitigate risks, maintain a positive work environment, and foster greater employee trust and satisfaction. The key to compliance is not simply reacting to changes but preparing for them in advance.