Labor & Employment (Public Employees)

SB 28 requires state agencies and institutions (like the University System of Maryland and Maryland Environmental Service) to use a neutral third-party arbitrator from the American Arbitration Association's panel when collective bargaining reaches an impasse. It mandates that budget bills include all necessary funds to implement agreements reached through bargaining, including memoranda of understanding (MOUs) covering employee terms and conditions. The bill makes the arbitrator's recommendations advisory (not binding) and sets deadlines for negotiations to conclude by September 30. This directly affects state employees represented by exclusive bargaining units and ensures funding for negotiated terms is included in annual budgets.

HB 604, the Arbitration Reform for State Employees Act of 2026, changes how state employees negotiate contracts at institutions like the University System of Maryland and the Maryland Environmental Service. It requires a neutral arbitrator to help resolve bargaining impasses if negotiations stall by September 1, with the arbitrator chosen from a national panel by September 15; the arbitrator’s recommendations would be advisory, not binding. The bill also mandates that each annual budget must include full funding for all terms in existing labor agreements, such as written contracts between the state and employee representatives. This directly affects state employees covered by collective bargaining and their representatives in negotiations.