Maryland House Bill HB314

Maryland 2026 Regular Session

• Introduced: 1/15/26
• Refer: 1/15/26

Caption

Automation Technology Deployment Assessment and Displaced Employee Retraining Fund - Established

Impact

The Displaced Employee Retraining Fund will serve as a special, nonlapsing fund derived from contributions made by covered employers for each displaced employee. This funding is designated to support training and job placement initiatives for individuals separated from their jobs because of automation. The legislation addresses the concern of automation displacing workers in the labor market and seeks to mitigate these impacts through proactive measures to retrain and support displaced employees. The Secretary of Labor is tasked with administering this fund and overseeing its utilization, ensuring that it's aligned with the needs of displaced workers.

Summary

House Bill 314 aims to establish an assessment for employers utilizing automation technology that leads to employee displacement. The bill requires certain employers—those with 100 or more employees who reduce their workforce by a designated number due to automation—to report their automation deployments and the count of displaced employees to the Secretary of Labor annually. The intention behind this legislation is to both assess the impact of automation on employment and to create a financial mechanism that supports retraining for affected workers through the Displaced Employee Retraining Fund.

Contention

A notable point of contention surrounding HB 314 is the potential financial burden it places on employers, particularly small businesses that may struggle to comply with the assessment fee structure. Covered employers will be assessed $900 for each displaced employee reported, which is subject to adjustments based on inflation. Critics may argue that such financial obligations could deter employers from adopting beneficial automation technologies or discourage hiring altogether. Furthermore, the definition of 'displaced employee' raises questions regarding the thresholds for reporting and potential discrepancies in workforce changes not directly attributable to automation.