February 26, 2010

The Honorable Thomas M. Middleton

Finance Committee

3 East, Miller Senate Building

Annapolis, MD 21401

Re: SB418 – Labor and Employment - Maryland Wage and Hour Law - Damages - Oppose

Dear Senator Middleton:

SB418 would allow an employee to recover liquidated damages under specified circumstances; and require, instead of authorize, a court to allow specified costs against an employer for a specified recovery in a specified action.

The Legislative Committee of the Carroll County Chamber of Commerce opposes this bill. This bill would require imposition of a penalty without any demonstration that the employer willfully violated the act. This penalty is clearly excessive and not tailored to the nature of the violation. Federal law provides for a liquidated damage provision, but the penalty is only a doubling of the unpaid wage amount, and the court may decline to impose a penalty if it appears the employer acted in good faith.

We therefore ask that your committee give this bill a negative report. 

Sincerely,

Richard Haddad

President

CC: Senator Larry E. Haines