Arbitration Reform for State Employees Act of 2025

SB 288, the "Arbitration Reform for State Employees Act of 2025," alters how state employee collective bargaining agreements are negotiated and funded. It requires state agencies (including universities and Maryland Environmental Service) and employee representatives to use a neutral arbitrator selected from a specific panel if negotiations reach an impasse by September 15, with strict timelines for discussions starting July 1. The bill also mandates that each annual budget must include full funding for all terms in existing written agreements between the state and employee representatives. This directly affects all state employees covered by collective bargaining, as it changes the process for resolving disputes and ensures budgetary support for negotiated terms.