A slew of new employment laws take effect Tuesday in Maryland related to job postings, wage statements, discrimination, prevailing wages and workplace fraud, among other topics. Notably, Maryland employers should be apprised of the following:
Salary Transparency in Job Postings
As discussed in greater depth earlier this year, Maryland employers are now required to include the “wage range” for all open and posted job positions. “Wage range” is defined as the minimum and maximum hourly rate or salary for a position, set in good faith by the employer based on:
(1) any applicable pay scale;
(2) any previously determined minimum and maximum hourly rate or salary for the position;
(3) the minimum and maximum hourly rate or salary of an individual holding a comparable position at the time of the posting; or
(4) the budgeted amount for the position.
Employers are also required to provide a general description of benefits and other compensation offered for the position. What constitutes a sufficient “general description of benefits and other compensation offered” remains to be seen. However, employers may satisfy their obligations under the law by including the form developed by the Maryland Commissioner of Labor & Industry in public and internal job postings and making the completed form available to employees and applicants for review.
Pay Stub Requirements
As a result of recent amendments to the Maryland Wage Payment and Collection Act, employers must now provide certain information to employees at the end of each pay period in their paystub/wage statements, either in print or online:
- The employer’s name, as registered with the state, address, and telephone number;
- The date of payment and the beginning and ending dates of the pay period;
- The number of hours worked during the pay period, unless the employee is classified as exempt under federal/state law;
- The employee’s rates of pay;
- The gross and net pay earned during the pay period;
- The amount and name of all deductions;
- A list of additional bases of pay, including bonuses, commissions on sales or other bases; and
- For each employee paid at a piece rate, the applicable piece rates of pay and the number of pieces completed at each piece rate.
Employers also still must provide at least one pay period’s notice of any change in an employee’s payday or wage. Similarly, employers remain obligated, at the time of hire, to provide employees with a written notice outlining: (1) the employee’s rate of pay; (2) the regular paydays that the employer sets; and (3) any leave benefits that may be available.
Paid Family and Medical Leave
Several modifications have been enacted to Maryland’s Paid Family and Medical Leave Program. Most notably, employers are now required to begin making contributions to the program on July 1, 2025 (rather than Oct. 1, 2024). Additionally, employees are eligible to begin utilizing leave beginning July 1, 2026 (pushed back from Jan. 1, 2026). The definition of “covered employee” has also been amended to include those who have worked at least 680 hours in a position based in Maryland over the four most recently completed calendar quarters for which quarterly reports have been required immediately preceding the date on which an employee’s leave is to begin.
Increased Penalties for Workplace Fraud & Prevailing Wage Violations
Pursuant to recent amendments to the Maryland Workplace Fraud Act, employers who knowingly misclassify an employee as an independent contractor may face an increased penalty of $10,000 (up from $5,000) for each employee who was not properly classified by the employer.
Similarly, contractors who fail to pay the prevailing wage rate on a public work contract will have their matters automatically referred to the Maryland comptroller and the state's attorney upon a showing of clear and convincing evidence that a violation has occurred, in addition to the federal departments of Justice, Labor and Treasury.
Employment Discrimination
Maryland’s Equal Pay for Equal Work Act has been amended to prohibit employment discrimination in compensation based on an employee’s race, religious beliefs, sex, gender identity or sexual orientation. The statute previously prohibited such discrimination only based on sex and gender identity.
Similarly, the Maryland Fair Employment Practices Act has been amended to include military status as a category by which an employee is protected from unlawful discrimination.
Employers with employees in Maryland should be mindful of these significant changes to the legal landscape in the state and consult with counsel regarding recommended practices for coming into compliance with these laws.
Opinions and conclusions in this post are solely those of the author unless otherwise indicated. The information contained in this blog is general in nature and is not offered and cannot be considered as legal advice for any particular situation. The author has provided the links referenced above for information purposes only and by doing so, does not adopt or incorporate the contents. Any federal tax advice provided in this communication is not intended or written by the author to be used, and cannot be used by the recipient, for the purpose of avoiding penalties which may be imposed on the recipient by the IRS. Please contact the author if you would like to receive written advice in a format which complies with IRS rules and may be relied upon to avoid penalties.
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