Effective October 1, 2024, employers in the State of Maryland must comply with recent changes to the Equal Pay for Equal Work Law and the Wage Payment and Collection Law. How can employers comply with new regulations? Below, we have summarized critical requirements, and recommended steps to take to minimize your risk.
What are the New Requirements?
Employers who are engaged in business in the State must provide wage ranges and other compensation information for all job postings in Maryland.
An employer must disclose the information listed below in public and internal job postings and repostings, or, when the job posting is not available, to applicants directly. Disclosures must occur before discussion of compensation or, at any time, upon request of the applicant. Employers must keep records of compliance with these requirements for at least three years either after the position is filled or, if unfilled, after the initial job posting.
- the specified wage range, as set by the employer in good faith;
- a general description of benefits; and
- a general description of any other compensation information, including, such as overtime, differentials, tips, commissions, bonuses, stock or stock options.
Employers are required to provide certain information for pay stubs and pay statements. This includes written notice to each new employee stating:
- the rate of pay for the employee;
- the regular paydays set by the employer; and
- leave benefits.
For each pay period, an employer must provide a written statement of the gross earnings of the employee and deductions from those gross earnings. Employers must also provide the following information in a physical pay stub or online pay statements:
- the employer’s name (registered with the State), address, and phone number;
- the date of payment and beginning and end dates of the pay period;
- total number of hours worked during the pay period (unless exempt from overtime under federal and state law);
- the rates of pay;
- the gross and net pay for the pay period;
- the amount and name of all deductions;
- a list of any additional bases of pay (commissions, bonuses, etc.); and
- for each employee paid at a piece rate, the applicable piece rate and number of pieces completed at each piece rate.
What Limitations Should Employers be Aware of?
This bill only applies to positions that include work physically performed at least in part in the State. The General Assembly has not yet defined “at least in part” in the State. Thus, it remains unclear whether the law applies to employers located outside of Maryland that employ remote workers in Maryland, or whether the law covers positions that are based in a different state but include remote work in Maryland on occasion.
What are the Penalties for Non-Compliance?
Failure to comply may result in a civil penalty of up to $600 for each employee or applicant.
What Next Steps Should Employers Take to Comply?
Maryland employers should review internal and public job postings to ensure compliance with new and current laws. Employers should also assess and adjust payroll processes in accordance with the new and current laws.
The Maryland Commissioner of Labor and Industry (CLI) has developed a form that employers may complete and make available to applicants – this form is voluntary; however, use of a properly completed template will satisfy the employer’s legal obligation to provide the required disclosures. The form is available on the CLI website here.
For more information about how wage transparency laws may impact you, your business, or your clients, please contact the Davis, Agnor, Rapaport & Skalny attorney with whom you typically work, or contact an attorney in our Labor & Employment Practice Group.
