Legislative Wrap-Up 2018 Maryland General Assembly Session
The 2018 Maryland General Assembly adjourned on April 9th, 2018. Over 3,000 bills were introduced this year. The Restaurant Association of Maryland (RAM) lobbied or tracked nearly 100 bills on behalf of the industry.
RAM membership dues support our vital lobbying efforts. Our victories would not be possible without the support of our members. We are grateful to restaurateurs who joined us in Annapolis this year to testify at hearings and meet with legislators. We also appreciate the time and hard work of RAM’s Government Affairs Committee (GAC), which reviews and discusses relevant legislation to determine our positions on key issues. If you are interested in serving on the GAC, or have additional questions about legislative issues, contact Melvin Thompson in the RAM office at (443) 539-2455 or mthompson@marylandrestaurants.com. To view a PDF version of the 2018 Legislative Wrap-Up CLICK HERE.
The following information summarizes some key industry issues and the legislative outcome:
RAM membership dues support our vital lobbying efforts. Our victories would not be possible without the support of our members. We are grateful to restaurateurs who joined us in Annapolis this year to testify at hearings and meet with legislators. We also appreciate the time and hard work of RAM’s Government Affairs Committee (GAC), which reviews and discusses relevant legislation to determine our positions on key issues. If you are interested in serving on the GAC, or have additional questions about legislative issues, contact Melvin Thompson in the RAM office at (443) 539-2455 or mthompson@marylandrestaurants.com. To view a PDF version of the 2018 Legislative Wrap-Up CLICK HERE.
The following information summarizes some key industry issues and the legislative outcome:
HOUSE BILL 1 (2017) - Sick Leave Veto Override
Veto Overridden
As its first order of business this year, the Maryland General Assembly overrode Governor Hogan’s 2017 veto of the earned sick leave legislation (House Bill 1). The House voted 88-52 to override the Governor’s veto, and the Senate voted 30-17 to override. Both votes were largely along party lines (click on vote links to see how your legislators voted).
Veto Overridden
As its first order of business this year, the Maryland General Assembly overrode Governor Hogan’s 2017 veto of the earned sick leave legislation (House Bill 1). The House voted 88-52 to override the Governor’s veto, and the Senate voted 30-17 to override. Both votes were largely along party lines (click on vote links to see how your legislators voted).
SENATE BILL 304 - Delay Sick Leave Law Effective Date
RAM Supported, Bill Failed
After overriding the Governor’s veto of the sick leave legislation, the General Assembly considered a bill that would have delayed the effective date of the new law until July 1, 2018. Although this legislation passed the Senate, it was rejected by a House committee. As a result, the new sick leave law became effective on February 11, 2018. This bill passed the Senate by a vote of 29 to 17. However, it was narrowly rejected by the House Economic Matters Committee by a vote of 11 to 12.
See website www.dllr.state.md.us/paidleave for Compliance Guidance on the new sick leave law. We expect this site to be continuously updated as compliance guidance is refined; so be sure to check it periodically for new information.
RAM Supported, Bill Failed
After overriding the Governor’s veto of the sick leave legislation, the General Assembly considered a bill that would have delayed the effective date of the new law until July 1, 2018. Although this legislation passed the Senate, it was rejected by a House committee. As a result, the new sick leave law became effective on February 11, 2018. This bill passed the Senate by a vote of 29 to 17. However, it was narrowly rejected by the House Economic Matters Committee by a vote of 11 to 12.
See website www.dllr.state.md.us/paidleave for Compliance Guidance on the new sick leave law. We expect this site to be continuously updated as compliance guidance is refined; so be sure to check it periodically for new information.
SENATE BILL 134 - Small Business Paid Sick Leave Tax Credit
RAM Supported, Bill Passed
The Maryland House and Senate unanimously passed legislation granting small businesses that qualify a tax credit for providing paid sick and safe leave benefits that meet or exceed the requirements of Maryland’s new paid sick and safe leave law. Small businesses with 14 employees or less may qualify for a tax credit for such paid leave benefits provided to employees whose wages are less than 250% of the annual federal poverty guidelines for a single-person household. A small business may claim a credit up to $500 for each qualified employee or an amount that equals the total amount of paid sick and safe leave benefits accrued by all qualified employees, whichever is less. The application for this credit is on a first-come first-serve basis, and must be approved by the Department of Commerce. The State has allotted $5 million annually for this specific credit.
RAM Supported, Bill Passed
The Maryland House and Senate unanimously passed legislation granting small businesses that qualify a tax credit for providing paid sick and safe leave benefits that meet or exceed the requirements of Maryland’s new paid sick and safe leave law. Small businesses with 14 employees or less may qualify for a tax credit for such paid leave benefits provided to employees whose wages are less than 250% of the annual federal poverty guidelines for a single-person household. A small business may claim a credit up to $500 for each qualified employee or an amount that equals the total amount of paid sick and safe leave benefits accrued by all qualified employees, whichever is less. The application for this credit is on a first-come first-serve basis, and must be approved by the Department of Commerce. The State has allotted $5 million annually for this specific credit.
HOUSE BILL 664 / SENATE BILL 543 – Minimum Wage Fight for $15
RAM Opposed, Bill Failed
This legislation would have increased Maryland’s minimum wage to $15/hour and phased out the tip credit, ultimately requiring employers to also pay tipped employees $15/hour. Automatic future wage increases would have been tied to the Consumer Price Index. This legislation also repealed language in current law that allows employers to pay employees under age 20 at least 85% of the State minimum wage for their first 6 months of employment. Overall, this was a terrible bill! RAM strongly opposed this legislation. Multiple restaurant operators joined our fight against this legislation by testifying at legislative hearings and participating in follow-up meetings with legislators. (Note: Montgomery County recently enacted legislation to phase in a $15 minimum wage beginning in July.)
Hearings on these bills were held in House and Senate Committees. Because of strong business opposition, there was no further action this year.
RAM Opposed, Bill Failed
This legislation would have increased Maryland’s minimum wage to $15/hour and phased out the tip credit, ultimately requiring employers to also pay tipped employees $15/hour. Automatic future wage increases would have been tied to the Consumer Price Index. This legislation also repealed language in current law that allows employers to pay employees under age 20 at least 85% of the State minimum wage for their first 6 months of employment. Overall, this was a terrible bill! RAM strongly opposed this legislation. Multiple restaurant operators joined our fight against this legislation by testifying at legislative hearings and participating in follow-up meetings with legislators. (Note: Montgomery County recently enacted legislation to phase in a $15 minimum wage beginning in July.)
Hearings on these bills were held in House and Senate Committees. Because of strong business opposition, there was no further action this year.
HOUSE BILL 974 – Overtime Pay Exemptions – Salary Threshold Increase
RAM Opposed, Bill Failed
This legislation would have doubled the current minimum salary threshold for overtime exemptions for employees classified as Executive, Administrative or Professional (EAP). In the foodservice industry, such exemptions typically affect managers and chefs. Under current law, such employees must earn a salary of at least $455 per week to qualify for the overtime exemption (in addition to meeting a duties test). This legislation would have guaranteed overtime pay to such employees earning a salary below $900 per week. This proposal attempted to enact, through State legislation, the proposed federal overtime changes that were ruled invalid by a federal court in August 2017. RAM strongly opposed this legislation.
After hearings were held, the House Economic Matters Committee rejected this legislation by a vote of 4 to 18.
RAM Opposed, Bill Failed
This legislation would have doubled the current minimum salary threshold for overtime exemptions for employees classified as Executive, Administrative or Professional (EAP). In the foodservice industry, such exemptions typically affect managers and chefs. Under current law, such employees must earn a salary of at least $455 per week to qualify for the overtime exemption (in addition to meeting a duties test). This legislation would have guaranteed overtime pay to such employees earning a salary below $900 per week. This proposal attempted to enact, through State legislation, the proposed federal overtime changes that were ruled invalid by a federal court in August 2017. RAM strongly opposed this legislation.
After hearings were held, the House Economic Matters Committee rejected this legislation by a vote of 4 to 18.
HOUSE BILL 512 / SENATE BILL 377 – Wage History Prohibition
RAM Opposed, Bill Failed
This legislation would have prohibited employers (with 15 or more employees) from seeking wage history information (including compensation and benefits) in the hiring process. The bill did not prohibit an applicant from voluntarily sharing such information. RAM opposed this legislation because it unnecessarily interferes with private-sector hiring practices.
A heavily amended version of this legislation passed the House of Delegates by a vote of 88 to 47. However, it failed to pass the Senate.
RAM Opposed, Bill Failed
This legislation would have prohibited employers (with 15 or more employees) from seeking wage history information (including compensation and benefits) in the hiring process. The bill did not prohibit an applicant from voluntarily sharing such information. RAM opposed this legislation because it unnecessarily interferes with private-sector hiring practices.
A heavily amended version of this legislation passed the House of Delegates by a vote of 88 to 47. However, it failed to pass the Senate.
HOUSE BILL 935 / SENATE BILL 823 – Discrimination by Place of Public Accommodation
RAM Opposed, Bill Failed
This legislation would have allowed victims of discrimination by a place of public accommodation (restaurants, bars, hotels, retail stores, etc.) to be paid civil penalties up to $25,000 (or more if the discriminatory act was malicious) in complaints that find businesses guilty. Under current law, such complaints filed through the Maryland Commission on Civil Rights (MCCR) may result in fines of $500 to $2,500 assessed against guilty businesses and paid to the State’s general fund. RAM opposed this legislation.
This bill was rejected by the Senate Education, Health & Environmental Affairs Committee and was subsequently withdrawn in the House.
RAM Opposed, Bill Failed
This legislation would have allowed victims of discrimination by a place of public accommodation (restaurants, bars, hotels, retail stores, etc.) to be paid civil penalties up to $25,000 (or more if the discriminatory act was malicious) in complaints that find businesses guilty. Under current law, such complaints filed through the Maryland Commission on Civil Rights (MCCR) may result in fines of $500 to $2,500 assessed against guilty businesses and paid to the State’s general fund. RAM opposed this legislation.
This bill was rejected by the Senate Education, Health & Environmental Affairs Committee and was subsequently withdrawn in the House.
HOUSE BILL 541 – Criminal Record Screening (Ban the Box)
RAM Opposed, Bill Failed
This legislation would have prohibited employers from inquiring about criminal background on job applications, and would have also prohibited criminal background checks until a conditional offer of employment had been made. Many employers conduct criminal background checks for managers, accounting staff and other high-level positions. (Note: Such a prohibition is currently in effect in Baltimore City, Montgomery and Prince George’s Counties.)
After hearings were held, the House Economic Matters Committee rejected this legislation by a vote of 3 to 19.
RAM Opposed, Bill Failed
This legislation would have prohibited employers from inquiring about criminal background on job applications, and would have also prohibited criminal background checks until a conditional offer of employment had been made. Many employers conduct criminal background checks for managers, accounting staff and other high-level positions. (Note: Such a prohibition is currently in effect in Baltimore City, Montgomery and Prince George’s Counties.)
After hearings were held, the House Economic Matters Committee rejected this legislation by a vote of 3 to 19.
HOUSE BILL 538 / SENATE BILL 651 – Polystyrene Foam (Styrofoam) Ban
RAM Opposed, Bill Failed
This legislation would have banned the use of polystyrene foam foodservice containers (Styrofoam) statewide. RAM opposed this legislation because it would have significantly increased the cost of disposable foodservice products without any measurable environmental or health benefit. (Note: Such a ban is currently in effect in Montgomery and Prince George’s Counties. Baltimore City recently approved such a ban, which is scheduled to take effect there in October 2019.)
The Senate Education, Health & Environmental Affairs Committee passed an amended version of this legislation by a vote of 7 to 4, but it was rejected 5 to 5 by the Senate Finance Committee.
RAM Opposed, Bill Failed
This legislation would have banned the use of polystyrene foam foodservice containers (Styrofoam) statewide. RAM opposed this legislation because it would have significantly increased the cost of disposable foodservice products without any measurable environmental or health benefit. (Note: Such a ban is currently in effect in Montgomery and Prince George’s Counties. Baltimore City recently approved such a ban, which is scheduled to take effect there in October 2019.)
The Senate Education, Health & Environmental Affairs Committee passed an amended version of this legislation by a vote of 7 to 4, but it was rejected 5 to 5 by the Senate Finance Committee.
HOUSE BILL 572 / SENATE BILL 153 – Oyster Shell Recycling Tax Credit
RAM Supported, Bill Passed
This legislation extends the Oyster Shell Recycling Tax Credit program until 2023 and increases the maximum allowable credit from $750 to $1,500. Restaurants and seafood suppliers can claim this $5 tax credit against State income tax for each bushel of oyster shells recycled during the year through the Oyster Recovery Partnership program.
This legislation was passed unanimously by both the House and Senate.
RAM Supported, Bill Passed
This legislation extends the Oyster Shell Recycling Tax Credit program until 2023 and increases the maximum allowable credit from $750 to $1,500. Restaurants and seafood suppliers can claim this $5 tax credit against State income tax for each bushel of oyster shells recycled during the year through the Oyster Recovery Partnership program.
This legislation was passed unanimously by both the House and Senate.
Mission: We promote, protect and improve the foodservice & hospitality industry in Maryland
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