SB 834
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
Senate Bill 834 (Senator Smith)
Judicial Proceedings Economic Matters
Harassment and Sexual Harassment – Definitions – Employment Discrimination
and Sexual Harassment Prevention Training
This bill alters the statutory definition of “harassment” relating to employment
discrimination. The bill explicitly includes sexual harassment within the definition of
harassment, and expands the definition of harassment to include conduct under certain
circumstances, as specified, which need not be severe or pervasive. The bill also alters the
definition of “sexual harassment” in statutory provisions relating to the requirement that
each State employee, as specified, complete mandatory sexual harassment prevention
training.
Fiscal Summary
State Effect: Potential general and special fund expenditures associated with increased
liability for the State, as discussed below. No material effect on revenues is anticipated.
Local Effect: Potential local government expenditures, as discussed below. Revenues are
not affected.
Small Business Effect: Potential meaningful.
 Analysis
Bill Summary:
Employment Discrimination
The bill alters the State Government Article’s definition of harassment relating to
employment discrimination. Under the bill, “harassment” includes unwelcome and
offensive conduct, which need not be severe or pervasive, when (1) the conduct is based
on race, color, religion, ancestry or national origin, sex, age, marital status, sexual
orientation, gender identity, or disability and (2) submission to the conduct is made either
explicitly or implicitly a term or condition of employment of an individual; submission to
or rejection of the conduct is used as a basis for employment decisions affecting the
individual; or, based on the totality of the circumstances, the conduct unreasonably creates
a working environment that a reasonable person would perceive to be abusive or hostile.
The bill also specifies that the definition of harassment in the context of employment
discrimination includes sexual harassment. Under the bill, “sexual harassment” includes
conduct, which need not be severe or pervasive, that consists of unwelcome sexual
advances, requests for sexual favors, or other conduct of a sexual nature when
(1) submission to the conduct is made either explicitly or implicitly a term or condition of
employment of an individual; (2) submission to or rejection of the conduct is used as a
basis for employment decisions affecting the individual; or (3) based on the totality of the
circumstances, the conduct unreasonably creates a working environment that a reasonable
person would perceive to be abusive or hostile.
Sexual Harassment Prevention Training
The bill makes conforming changes to statutory provisions addressing mandatory sexual
harassment prevention training for State employees by establishing that “sexual
harassment” has the same meaning as it does in the context of employment discrimination,
as described above.
Current Law:
Employment Discrimination
An employer may not engage in harassment of an employee. Under § 20-601 of the State
Government Article, “harassment” includes harassment based on race, color, religion,
ancestry or national origin, sex, age, marital status, sexual orientation, gender identity, or
disability, and retains its judicially determined meaning, except to the extent it is expressly
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or impliedly changed in the applicable statutory provisions. Section 20-601 contains no
separate definition for “sexual harassment.”
Enforcing Employment Discrimination
An individual alleging employment discrimination may file a complaint with the Maryland
Commission on Civil Rights (MCCR). If a complaint is filed with MCCR and an agreement
to remedy and eliminate the discrimination cannot be reached, the matter may be heard
before an administrative law judge. Remedies available on a finding that the respondent is
engaging or has engaged in an unlawful employment practice include (1) enjoining the
respondent from engaging in the discriminatory act; (2) ordering appropriate affirmative
relief; (3) awarding compensatory damages for pecuniary and nonpecuniary losses; and
(4) ordering any other equitable relief that the administrative law judge considers
appropriate.
A complainant or a respondent may elect to have the claims asserted in a complaint alleging
an unlawful employment practice determined in a civil action brought by MCCR on the
complainant’s behalf if (1) MCCR has found probable cause to believe the respondent has
engaged or is engaging in an unlawful employment practice and (2) there is a failure to
reach an agreement to remedy and eliminate the practice. MCCR may also elect to have
the claims asserted within the complaint determined in a civil action brought on its own
behalf under the same conditions. On a finding that discrimination occurred, the court may
provide the remedies specified above.
A complainant may file a private civil action against the respondent under specified
circumstances. In addition to the remedies specified above, the court may award punitive
damages in specified circumstances. Any party may demand a jury trial if a complainant
seeks compensatory or punitive damages. Pursuant to § 20-1015 of the State Government
Article, a court may award the prevailing party in a civil action reasonable attorney’s fees,
expert witness fees, and costs.
Employer Liability
In an action alleging harassment, an employer is liable for the acts or omissions toward an
employee or applicant for employment committed by an individual who (1) undertakes or
recommends tangible employment actions affecting another employee or an applicant,
including hiring, firing, promoting, demoting, and reassigning another employee or an
applicant or (2) directs, supervises, or evaluates the work activities of another employee.
An employer is also liable if the employer’s negligence led to the harassment or
continuation of harassment.
SB 834/ Page 3
Sexual Harassment Prevention Training
All State employees in the Executive, Judicial, and Legislative branches generally must
complete at least two hours of in-person or virtual interactive training on sexual harassment
prevention within six months after the employee’s initial appointment and every two-year
period thereafter. Among other requirements, the training must include information on the
laws concerning the prohibition of sexual harassment, best practices in prevention and
correction of sexual harassment, and remedies and procedures available to victims of
sexual harassment in employment.
Each covered unit of State government must designate a representative to coordinate with
MCCR to implement the required training. MCCR must train each representative in the
prevention of sexual harassment, discrimination, and retaliation, and best practices in
sexual harassment prevention. Representatives are encouraged to use U.S. Equal
Employment Opportunity Commission materials to prevent sexual harassment in the
workplace.
With respect to this required training, “sexual harassment” is defined as including
unwelcome sexual advances, requests for sexual favors, and other verbal, nonverbal, or
physical contact of a sexual nature when (1) submission to the conduct is made either
explicitly or implicitly a term or condition of an individual’s employment; (2) submission
to or rejection of the conduct by an individual is used as a basis for employment decisions
affecting the individual; or (3) the conduct has the purpose or effect of unreasonably
interfering with an individual’s work performance or creating an intimidating or offensive
working environment that is perceived by the victim to be abusive or hostile.
State Fiscal Effect:
Maryland Commission on Civil Rights
MCCR advises that although the bill expands the definitions of harassment/sexual
harassment beyond existing precedent, thereby potentially increasing the number of claims
filed, MCCR anticipates being able to absorb any potential increase in the number of
harassment complaints it receives and investigates with existing resources.
Increased Caseloads Generally
Any increase in complaints to MCCR may subsequently lead to an increase in
administrative appeals and civil actions filed in the circuit courts. Nonetheless, any increase
in caseloads is not anticipated to materially affect the finances or operations of the Judiciary
or the Office of Administrative Hearings.
SB 834/ Page 4
Sexual Harassment Prevention Training
To the extent that the bill’s expanded definitions of harassment/sexual harassment affect
State employee training programs, expenditures potentially increase in connection with
updating or revising relevant aspects of a governmental unit’s curriculum or training
materials. Specific costs that might be associated with such curriculum or program updates
are not readily available. It is assumed, however, that any potential expenditures associated
with updating employee training programs and procedures do not materially affect State
finances.
State as Employer
State expenditures (general/special funds) may increase to the extent that the State, as an
employer, is subject to additional employment discrimination complaints under the bill,
thereby potentially increasing liability risks and other costs associated with the litigation
and resolution of such claims. According to the State Treasurer’s Office (STO), if an
employment discrimination claim against the State is filed in circuit court, once STO
receives the suit, it is subject to review by the Office of the Attorney General to determine
if there are torts involved and whether the claim remains under Maryland Tort Claims Act
(MTCA)/STO or with the State agency involved in the claim. If the claim falls under
MTCA, special funds from the State Insurance Trust Fund may be used to pay for
subsequent litigation costs and judgment awards. If claims do not involve a tort, any
resulting costs are generally paid by the impacted agency or as otherwise directed by the
Board of Public Works.
Local Fiscal Effect: Local governments may be subject to additional employment
discrimination complaints under the bill, potentially increasing liability risks and other
expenditures associated with such claims.
Small Business Effect: Small business owners may be subject to an increased risk of
liability based on the bill’s expanded definition of harassment.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Maryland Commission on Civil Rights; Judiciary
(Administrative Office of the Courts); Department of Budget and Management;
Department of Legislative Services
SB 834/ Page 5
Fiscal Note History: First Reader - February 24, 2021
rh/jkb Third Reader - March 29, 2021
Revised - Amendment(s) - March 29, 2021
Analysis by: Tyler Allard Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 834/ Page 6


Statutes affected:
Text - First - Harassment and Sexual Harassment – Definitions – Employment Discrimination and Sexual Harassment Prevention Training: 20-601 State Government, 2-203.1 State Personnel and Pensions
Text - Third - Harassment and Sexual Harassment – Definitions – Employment Discrimination and Sexual Harassment Prevention Training: 20-601 State Government, 2-203.1 State Personnel and Pensions