By Oren D. Saltzman, Esq. and Eric D. Disharoon, Esq.

How much notice must employers give to employees before terminating an employment relationship? This question is the subject of the class-action suit by former ESPN Zone employees.

Generally, when a person terminates her/his employment or is fired, there is no requirement for the employee or the employer to provide the other with any notice that the employee’s employment is being terminated.

Maryland is one of many states that recognize the doctrine of “at-will” employment. The term “at-will” employment means that except in specific circumstances an employer or an employee may terminate the employment relationship at any time, with or without reason or notice. Exceptions to this doctrine include, among others:

· A statute which requires the employer to provide notice to the employee (such as the Worker Adjustment and Retraining Notification Act, which requires certain employers to provide its employees with at least 60 days written notice that their employment is being terminated and is central to the class action suit by the former ESPN Zone employees);

· An employment contract between the employer and employee for a definite term, or

· An employee handbook or collective bargaining agreement.

Each of these exceptions may require an employer to provide an employee with notice of termination.

Most employees will provide their employees with some notice (i.e., two weeks) before they terminate their employment out of courtesy rather than through an obligation. Likewise, some employers will offer an employee severance if the employee is being “let go” for a reason other than for cause.

However, unless there is an agreement between the employer and the employee (i.e. an employment contract or a collective bargaining agreement, etc.) requiring an employer to pay its employee severance, there is no legal requirement to pay any severance.

Maryland law requires an employer to pay its employees all “wages” due and owing to the employee for work performed before the termination on or before the day the employee would have been paid the wages if the employment had not been terminated. “Wages” include all compensation that is due to an employee for employment, including bonuses, commissions, fringe benefits, overtime and any other remuneration promised to the employee by the employer.

Additionally, an employer is required to pay accrued leave to an employee unless:

· The employer has a written policy that limits the payment of accrued leave to employees;

· The employer notified the employee at the time the employee was hired of the employer’s policy against payment of accrued leave, and

· The employee is not entitled to payment for accrued leave at termination under the terms of the employer’s written policy.

If an employer fails to pay an employee within two weeks of the date on which the employer is required to have paid the wages, an employee may sue the employer to recover the unpaid wages plus up to three times the unpaid wages, reasonable counsel fees and other costs, subject to a court finding that an employer withheld the wages without a bona fide dispute.

Oren Saltzman is a member and Eric Disharoon is an associate with the law firm of Adelberg, Rudow, Dorf & Hendler LLC. Saltzman focuses on commercial and corporate law, banking, estate planning and administration, bankruptcy workout, taxation and guardianship. Disharoon focuses his practice in the areas of employment law, business/corporate law and intellectual property. For more information, call 410-539-5195.

Nov. 1, 2010