by David HisleNew Maryland Family and Medical Leave Law Begins
New Maryland family and medical leave law begins with payroll contributions starting in 2027
Maryland employers and employees are preparing for one of the most significant changes to our state’s employment landscape in recent years: the Family and Medical Leave Insurance (FAMLI) program.
The FAMLI program was established under Maryland’s Time to Care Act, and is administered by the Maryland Department of Labor. Beginning January 1, 2028, eligible employees will generally be able to receive up to 12 weeks of paid leave per year, with benefits of up to $1,000 per week under the current program structure. The program is designed to provide workers with income while they take time away from work for qualifying family or medical circumstances.
FAMLI will provide eligible Maryland employees with paid, job-protected leave for qualifying family and medical reasons. This program is intended to help Maryland workers take necessary leave without having to choose between caring for themselves or a family member and receiving income.
Unlike the federal Family and Medical Leave Act (FMLA), which generally provides eligible employees with unpaid job-protected leave, FAMLI provides a partial wage replacement during qualifying leave. Although employees will not begin receiving FAMLI benefits until January 1, 2028, Maryland employers already have important responsibilities. Employer registration is underway, payroll contributions begin January 1, 2027, and employers will need to prepare their payroll, leave, employee-notice, and human-resources systems well before benefits become available.
Maryland employers with at least one employee working in Maryland must register with the FAMLI program – and there are no exceptions to the registration requirement based solely on the employer having only one employee. Maryland’s FAMLI program is broader than many small-business owners may realize.
FAMLI eligibility is based in part on the amount of time an employee has worked in Maryland.
Under the current program, an employee generally becomes eligible after working at least 680 hours in a position localized in Maryland during the four calendar quarters reported before the employee files a claim or begins leave, whichever is earlier. This is important because eligibility is not simply determined by whether someone has worked for an employer for a particular number of months. FAMLI generally provides up to 12 weeks of paid leave per year, subject to the statutory eligibility and benefit rules. The current maximum benefit is $1,000 per week.
It is important to understand the differences between FAMLI and the federal Family and Medical Leave Act (FMLA) – FMLA generally provides eligible employees with unpaid, job-protected leave for certain family and medical reasons – while FAMLI, by contrast, provides a paid benefit. The two programs can apply to the same absence. When an employee’s leave qualifies under both FMLA and FAMLI, the leave generally runs concurrently, meaning that an employee ordinarily does not receive an entirely separate 12 weeks of FMLA leave plus another 12 weeks of FAMLI leave for the same qualifying event. There can be circumstances in which FAMLI will apply, but FMLA will not apply.
by Steve LewickyWhen Foreclosure Proceedings Can be Stopped in Maryland Due to Fraud
On June 22, 2026, the Supreme Court of Maryland handed down a decision in the case of Hallam v. New Life Evangelical Baptist Church, Inc., which clarifies the process for challenging a foreclosure sale when there is an allegation of fraud.
The Maryland Rules of Civil Procedure provide a legal framework for foreclosing on loans secured by real property. Under these rules, a borrower may challenge a Maryland foreclosure proceeding at three points after a lienholder dockets a foreclosure action: (1) before a foreclosure sale, by filing a motion to stay the sale and dismiss the action; (2) after a sale, by filing exceptions to ratification of the sale; and (3) after ratification of the sale, by filing exceptions to the auditor’s statement of account.[1] Prior to a foreclosure sale, the borrower, a record owner, or certain other interested parties may file a motion to stay the sale of the property and dismiss the foreclosure action pursuant to Md. Rule 14-211(a)(1).[2] In an action not involving residential property, a borrower must file this motion no later than 15 days after first becoming aware of the action. Md. Rule 14-211(a)(2)(B); Md. Rule 14-209(a).[3] After a hearing on the merits, if the trial court finds that the borrower has established that the lien or the lien instrument is invalid, or that the plaintiff has no right to foreclose in the pending action, it is required to grant the motion and, unless it finds good cause to the contrary, dismiss the foreclosure action.” Md. Rule 14-211(e).
After a foreclosure sale, the person authorized to make the sale is required to file a report of the sale with the court. Md. Rule 14-305(a). The clerk then issues a notice stating that the sale will be ratified by the court unless cause to the contrary is shown within 30 days after the date of the notice. Md. Rule 14-305(d).To show “cause to the contrary,” a borrower may file written exceptions to the sale. Md. Rule 14-305(e)(1).
In earlier cases, the Supreme Court of Maryland directed that the time to raise known and ripe defenses to the right to foreclose on property is pre-sale (under Rule 14-211) – with the post-sale exceptions process under Rule 14-305 ordinarily limited to rising irregularities in the sale itself.[4] In the court’s new Hallam opinion, it addresses whether a borrower may assert a post-sale exception that the underlying debt was the product of fraud.
The court in Hallam held that, if a borrower knows or reasonably should know of a defense to the right to foreclose in advance of the sale, the borrower must raise that defense in a pre-sale motion to stay the sale and dismiss the action.[5] This includes a claim that the lien is invalid for any reason, including satisfaction of the debt, forgery, or other fraud.[6] A borrower may not raise as a post-sale exception a defense to foreclosure that it included or should have included in a pre-sale motion.[7] This rule applies regardless of who purchases the property at the foreclosure sale.[8]
Lewicky, O’Connor, Hunt & Meiser has experience litigating claims that a foreclosure proceeding should be dismissed on account of fraud. The new Hallam case makes clear that a person wishing to stop a foreclosure proceeding because of a claim of fraud must take action quickly, within a limited period of time after learning of or suspecting fraud.
[1] Hallam v. New Life Evangelical Baptist Church, Inc., 2026 Md. LEXIS 283, Slip Op. pp. 3-4.
[2] Id., Slip Op. p. 7.
[3] Id.
[4] Id., Slip Op. p. 4.
[5] Id., Slip Op. pp. 6, 37, 42-45.
[6] Id., Slip Op. pp. 6.
[7] Id.
[8] Id.
by Steve LewickyUsing Artificial Intelligence in litigation and legal disputes
Artificial intelligence is becoming a big part of everyone’s business and professional life, including when legal disputes arise. When my clients become involved in business or real estate disputes, or other litigation or arbitration, they often now consult AI agents before talking to an attorney. This desire by clients to empower themselves with knowledge and avoid unnecessary legal expense is understandable. AI can be very useful when you have questions about the law or are in a dispute – but while AI is useful and time-saving for some tasks, it can be very unreliable for others. Knowledgeable clients get the best results when they treat AI as a powerful organizational and analytical tool, but not as a substitute for an experienced attorney.
Business disputes can generate enormous amounts of information, such as contracts, emails, text messages, invoices, spreadsheets, accounting records, photographs, correspondence, deposition transcripts, and other documents. One of AI’s greatest strengths is its ability to process and organize large amounts of information quickly. A business might have several years of invoices and payment records, for example, and AI can sometimes help identify payment patterns, total up amounts paid, compare two sets of financial records, or identify transactions that appear to be missing from a set of records. AI may also be useful in reviewing a collection of emails and identifying communications concerning a particular subject, person, transaction, or period of time. Sometimes my clients use AI to summarize a lengthy contract, organize a chronology of events, extract dates from correspondence, identify the principal subjects discussed in a group of documents, or create a table comparing different versions of an agreement. These tasks can be valuable because they allow a lawyer and his or her client to spend less time performing labor-intensive review work, and more time analyzing what the documentary information means. In many cases, thoughtful use of AI can reduce overall legal expense.
AI also can be helpful to a client in preparing for meetings with counsel. A client that organizes the history of a dispute into a concise timeline, identifies important documents, and lists the major questions that need to be addressed, will usually make better use of the time spent with an attorney.
AI is considerably more problematic, and potentially harmful, when a client goes from using it to organize information, to providing legal opinions, strategy or conclusions. AI agents might, in some circumstances, provide a useful starting point for identifying legal issues or suggesting subjects that should be researched – but they frequently make mistakes when describing statutes, court rules, and judicial decisions. There are many examples in published court decisions and other public sources of AI providing incorrect quotations, misunderstanding court decisions, relying upon outdated law, and sometimes giving citation to court opinions that do not even exist. A person using AI for any form of legal-related work should never assume that a legal proposition is correct simply because an AI system states it confidently, or provides what appears to be a legal citation. Every significant legal authority as to be independently checked against a reliable legal research source.
This problem is particularly important in litigation. The outcome of a lawsuit or arbitration may depend upon relatively subtle distinctions – for example, which court issued a particular decision, whether that decision is binding or merely persuasive, whether the case has subsequently been limited or overruled, or whether a statute or court rule has recently been amended. AI does not consistently make those distinctions correctly.
AI can generate language very quickly, but that does not mean it is particularly good at drafting pleadings, motions, briefs, or other papers to be filed with a court. Effective legal writing requires more than professional-sounding prose. A good lawyer decides which facts should be alleged, which facts should be emphasized or omitted, which causes of action or defenses are legally available, what must be preserved for later proceedings or appeal, what evidence can actually be proven, and what arguments are strategically wise. A seemingly minor sentence in a complaint or motion may have consequences later in the case, and an allegation may constitute an admission. Unnecessary legal theories may complicate the litigation discovery process. An argument made too broadly may undermine another position. In addition, pleadings and papers filed with a court must comply with the procedural requirements of the particular court in which the case is pending. At the most basic level, AI is not really capable of creating, evaluating or pursuing a well-considered litigation strategy. It can produce a document that looks like a good legal pleading, but it cannot tell you with any reliability what pleading should be filed. AI can be a tool for brainstorming, checking consistency, working through large quantities of information, etc., but the judgment exercised in preparing the final court filing remains fundamentally the lawyer’s responsibility.
Clients get the greatest benefit from AI by using it to help organize and understand their own information. For example, if you have a complicated payment dispute, AI might be useful in organizing invoices and payments into a spreadsheet. If you have a lengthy chain of correspondence, it may help identify the primary communications. The resulting work should then be reviewed with counsel. Your lawyer can determine which facts actually matter legally, whether additional documents are needed, what information may be privileged or confidential, and how the information fits into the overall strategy of the case.
Finally, it is very important to exercise caution before uploading confidential, privileged, proprietary, or personally identifiable information into any AI service. The many AI platforms have different policies concerning storage, retention, and use of information. Before providing sensitive materials to any AI system, a you must understand how that information will be handled by the AI service. Once you upload documents or data, the information will be subject to use and sharing consistent with whatever terms and policies apply to the particular AI service – and may also be dependent upon what level of service you have selected. As a rule of thumb, you should not upload to a “free” AI tool any data or information that is in any way confidential or contains personal information. Whether a “paid” service or participation level will adequately protect your information depends on the nature of that service’s user agreement and policies. It would be safest to discuss these matters with counsel before uploading any confidential or personal information to an AI system.
Properly used and with sufficient privacy and confidentiality safeguards, AI can be an excellent assistant. It is fast at organizing information, can be useful for analyzing data, and sometimes is remarkably effective at summarizing complicated records. AI remains capable of significant factual and legal errors, however, and its apparent confidence should never be mistaken for reliability. The best approach is to assign AI the work it does well and reserve legal judgment, litigation strategy, legal research verification, and final court filings for the attorney responsible for the case.
by Elizabeth BoweryStarting a New Business: What Is a Resident Agent and Do You Need One?
A resident agent serves as an entity’s point of contact for receiving service of process, including lawsuits, subpoenas, and notices. Upon receipt, the resident agent must promptly forward these legal documents to the business owner. Under Maryland law, service of process on a business’ resident agent generally constitutes effective service on the business itself. As a result, legal deadlines begin running when the resident agent is properly served, not when the business owner receives the paperwork.
To qualify as a resident agent in Maryland, an individual must reside in Maryland, or a business must be authorized to provide registered agent services. The resident agent’s name and address is a matter of public record maintained by the State Department of Assessments and Taxation (SDAT), and any changes must be updated with the agency promptly.
Whether your business needs a resident agent depends on its legal structure. Maryland generally requires limited liability companies (LLCs), corporations, and certain other statutory business entities to designate and maintain a resident agent. Sole proprietorships, by contrast, are generally not subject to this requirement because they lack a separate legal identity. For more details on each entity type and their requirements, see my previous article, “Starting a New Business: Deciding the Type of Business Entity to Establish.”
Consult a Business Lawyer About Your Business’ Compliance Requirements
Selecting and maintaining a resident agent is one of many legal requirements involved in forming and operating a Maryland business. As business lawyers, we assist business owners at every stage of ownership, offering guidance in selecting the best entity, meeting statutory requirements, and providing ongoing business counsel. We can help you navigate legal complexities so you can focus on growing your business.
by Samantha ChanBefore You Sign a Contract, Consider Which State’s Law Will Apply to Its Interpretation
When people review a contract, they understandably focus on the central terms, such as price, payment schedule, deadlines, and what each side is required to do.
One provision that often gets overlooked, however, is the choice-of-law provision. You will often find this item covered toward the end of a written contract, sometimes buried under a heading like “Miscellaneous.” It may not be the most exciting part of the contract, but it is important to review and consider.
Just because a company is doing business with you in Maryland, that does not necessarily mean that Maryland law will apply if a dispute arises. Some contracts provide that the terms are governed by the laws of another state. Others may require disputes to be resolved through arbitration, or through a lawsuit to be brought in another state.
These provisions may not seem important when you are signing the contract, or thereafter while things are going well. But if a dispute comes up later, these can have a real impact on where you can bring a claim, where you can be sued, what law applies, and what options you have.
The time to identify these issues is before the contract is signed, not after a dispute develops. By the time there is a problem, the contract has already been signed, and the parties have to abide by the provisions they agreed to.
Before signing an important contract, take a few minutes to look for the less exciting terms, such as those dealing with choice of law, where disputes must be adjudicated, and arbitration. If you are unsure what those provisions mean, it may be worth having a Maryland attorney review the contract before you sign it.
The attorneys at Lewicky O’Connor Hunt & Meiser, LLC have experience reviewing, negotiating, and drafting a wide range of agreements, including commercial and business contracts and residential and commercial leases. While every agreement is different, many of the same issues come up again and again. Whether you need help understanding an agreement before you sign it, negotiating its terms, or dealing with a dispute after the fact, we are happy to help.
