Bill > SB218

This bill establishes a process for suspending or revoking business licenses when employers commit workplace fraud, specifically related to employee misclassification. Under the bill, the Maryland Department of Labor's licensing authorities (including boards for elevators, home improvement, electricians, HVAC, and plumbing) must suspend or revoke a business's professional license if the employer is found to have violated laws regarding employee classification and fails to pay assessed penalties or restitution within 45 days of a final court or administrative order. Before taking such action, the licensing authority must provide written notice to the business and allow for an appeal, which is limited to verifying the correct identity of the licensee. The bill also ensures that these licensing actions can apply to successor corporations with similar principals or officers and to individual managers who were aware of the violation. Importantly, the adverse licensing action can be imposed alongside other enforcement measures, and a suspended or revoked license can only be reinstated after the Commissioner of Labor provides specific notification that penalties have been paid or a court has ordered reinstatement. The bill is set to take effect on October 1, 2025.

Budget and Finance

Finance (Senate)

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0218?ys=2025RS