Arbitration Reform for State Employees Act of 2025

HB 159 requires state agencies, universities, and Maryland Environmental Service to use a neutral arbitrator when collective bargaining for state employees reaches an impasse. If negotiations aren't resolved by September 1, the parties must select one arbitrator from a list of 15 nationally recognized labor arbitrators provided by the American Arbitration Association. The bill mandates that all agreements reached through this process become binding terms of employment, with budget bills required to include full funding for these agreements. This reform directly affects state employees, their bargaining representatives, and all state entities covered under collective bargaining agreements.