On Aug. 26, 2024, the U.S. District Court for the District of Maryland decided in Teamsters Local Union No. 355 v. Total Distribution Services Inc. that the Maryland Economic Stabilization Act (“the Maryland WARN Act”) does not provide individuals with the right to file suit in their personal capacity to enforce a legal claim under the act. However, the Maryland WARN Act may still be enforced by the state Department of Labor. The act is based, in part, on its federal counterpart, the Worker Adjustment and Retraining Notification (WARN) Act, though there are important differences between the two acts.

Background

The individual plaintiff formerly worked for the defendants at an automobile distribution facility near Jessup, Md., in an unincorporated community known as Annapolis Junction. During this time, Teamsters Local Union 355 represented employees, including the plaintiff, working at that location in negotiations to establish an updated collective bargaining agreement for the bargaining unit. On May 10, 2023, the defendants terminated 60 employees at that location—which included all 47 unionized employees at this facility—without providing any written notice before the terminations commenced.

The Maryland WARN Act requires qualifying employers to provide at least 60 days’ notice to qualified employees, collective bargaining representatives, and certain government entities before a covered reduction in operations occurs.

Teamsters Local Union No. 355 and the individual...

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