Do you know if new employment laws will impact your business? Both Virginia and Maryland have important employment law updates that you should be aware of if you conduct business in these states.
Here are the recent legislation highlights in Virginia:
- The minimum wage increased from $12.00 to $12.41 on January 1, 2025. Pursuant to the Virginia Code § 40.1-28.10, this increase is based upon the annual increase in the Consumer Price Index for All Urban Consumers (CPI-U). The minimum wage will be adjusted accordingly each calendar year.
- "Low-wage workers"—whom Virginia prohibits from entering into non-compete agreements—were redefined as workers earning less than $1,463.10 per week. This is based upon the average weekly wage in the prior fiscal year.
- The Virginia Human Rights Act (VHRA)—the state's keystone anti-discrimination statute—was amended to include ethnic origin as a protected trait. This means that employees may file charges of employment discrimination on account of their ethnic origin.
- The VHRA was also amended to allow employees to file a charge with the Virginia Office of Civil Rights within 300 days of the alleged unlawful employment practice. This changes the prior 180-day limitation to be aligned with the filing period for federal discrimination claims.
- The Virginia Office of Civil Rights is required to issue a Right to Sue Letter within 180 days of the complaint's filing, as long as the parties have not reconciled the matter. However, a 2024 amendment now allows the complainant to bring a civil suit 180 days after the filing of the complaint, even if the Office has not issued a Right to Sue Letter. This accounts for the backlog due to an increase of claims brought under the Virginia Human Rights Act in recent years.
- Employees who use cannabis oil with medical authorization are now protected from employment discrimination on that basis, although this does not permit employees to use cannabis oil during working hours.
Maryland's recent legislation highlights are as follows:
- The Family and Medical Leave Insurance Program (FAMLI) will
provide the framework for workers to take paid
leave to care for a family member or for their own health.
- The law gives workers job protection and up to 12 weeks off work while they earn up to $1,000 a week.
- Eligible employees must have worked at least 680 hours in Maryland in the past 12 months.
- Beginning July 2025, all businesses of at least 15 employees must implement payroll deductions in order to contribute to the program.
- Benefits begin for workers in July 2026.
- A business may opt out through providing a private insurance plan with similar benefits, but this is subject to the Maryland Department of Labor's approval.
- Beginning July 2025, non-compete agreements will be illegal for Maryland healthcare professionals earning less than $350,000. For healthcare professionals earning more than $350,000, NCAs cannot last longer than one year and cannot restrict their employment within a 10-mile radius of the previous work location.
- Employers now must include employees' rates of pay, paydays, and available leave benefits on a paystub for each pay period.
- Maryland employers are required to disclose salary ranges and benefits in job postings and must always provide such information upon an employee's request. But employers may not retaliate against employees for refusing to disclose past wages.
- Military status is now a protected trait in anti-discrimination legislation, including for purposes of employment discrimination.
- Vaping is now prohibited in places of employment, amending Maryland's Clean Indoor Air Act to protect workers in addition to members of the general public.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
