Emergency Legislation Effectively Reverses Catapult Case Ruling

On April 24, 2008, Governor O’Malley signed into law an amendment to the Maryland Wage Payment and Collection Act effectively reversing the August 2007 Maryland Court of Special Appeals decision in Catapult Technology, Ltd. v Wolfe, et al. Maryland law now permits employers to legally deny employers payment for accrued unused leave upon the termination of employment so long as the employer has a policy to such effect and such policy is communicated to employees at the time of hire. The Maryland Department of Labor, Licensing and Regulation, the agency responsible for administering the Maryland Wage Payment and Collection Act, has again changed its position with respect to accrued unused leave and is now consistent with this new law.

The law also applies retroactively to employees terminated on or after November 1, 2007 and before April 24, 2008, permitting employers to legally deny such employees payment for accrued unused leave upon the termination of employment so long as the employer has policy to such effect and such policy is communicated to employees prior to the termination of employment.

For assistance in complying with the Maryland Wage Payment and Collection Act and other employment law issues, please contact our Employment Law Group at (301) 340-2020.