Read World Impact: Maryland recently enacted the Wage Range Transparency law, which went into effect on October 1, 2024. We previously provided a Legal Alert on this topic, however, the Maryland Department Labor has since provided more helpful insight here.
As a brief overview of the key topics, the Wage Range Transparency law requires employers to provide the following for all job postings:
1. the pay range, including minimum and maximum;
2. a general description of the benefits (i.e.: employer provided insurance, retirement funds, and PTO policies);
3. any other compensation elements offered for the position (i.e.: compensatory overtime, bonuses, stock or stock options, and tips).
Importantly, employers are required to comply with these requirements for both internal and external job postings and the requirements apply whether the employer posts the position via a third party or directly.
The Maryland DOL provides a sample template employers can rely on in drafting their compensation disclosures. Using this template will ensure compliance with the new law, however, employers may craft their own narrative-form compensation disclosures as part of job postings, so long as all required information is included. The Maryland DOL also provided helpful examples of narrative disclosures in their updated materials.
If an employer fails to comply with the law, the Commissioner of Labor and Industry has the authority to assess civil penalties, which range from an order compelling compliance to a fee of $600 per applicant for whom the employer is not in compliance.
NEXT STEPS:
All employers should consider conducting the following due diligence:
- Review job postings and advertisements to ensure compliance;
- Consider conducting a pay equity audit to ensure that pay setting practices are compliant with all federal and state equal pay laws;
- Evaluate your interviewing and hiring material;
- Train all relevant personnel on the updated requirements.
