Arbitration Reform for State Employees Act of 2026

HB 604, the Arbitration Reform for State Employees Act of 2026, changes how state employees negotiate contracts at institutions like the University System of Maryland and the Maryland Environmental Service. It requires a neutral arbitrator to help resolve bargaining impasses if negotiations stall by September 1, with the arbitrator chosen from a national panel by September 15; the arbitrator’s recommendations would be advisory, not binding. The bill also mandates that each annual budget must include full funding for all terms in existing labor agreements, such as written contracts between the state and employee representatives. This directly affects state employees covered by collective bargaining and their representatives in negotiations.