Bill Positions

Bill Number: SB 466

Bill Title: Labor and Employment - Employment Contracts - Implied Covenant of Good Faith and Fair Dealing

Bill Sponsor(s): Senator Stone

Subject: Workplace Regulation

Committee: FIN

Bill Summary: This bill would have created an implied covenant of good faith and fair dealing in all employment contracts. Employers would have been prohibited from firing employees in bad faith or without good cause. It would have allowed an employee to waive the implied covenant of good faith and fair dealing if the employee voluntarily and without coercion signed a written waiver separate from the employment contract.

History: This bill received an unfavorable report by the Finance Committee.

Chamber Position: Oppose

Position Summary: Currently, only Montana has a similar statute and only a few courts have judicially created this exception to at-will-employment beyond the traditional wrongful discharge situations. This bill was unnecessary interference in the employer/employee relationship. For this reason, the Maryland Chamber opposed this bill.

Position Statement:

Chamber Staff: Allyson Black

General Assembly: Click here to view the bill on the Maryland General Assembly's website.