Several Employment Law Changes Are Coming to Maryland

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September 16, 2024

On April 25, 2024, Maryland Governor Wes Moore approved several bills that amend existing Maryland laws.  These amendments are scheduled to go into effect on October 1, 2024.

• Pay Stub Requirements (SB0038/HB0385): At the time of hire, employers are required to provide specific information, in writing, to new employees, including the employee’s rate of pay, regular paydays, and leave benefits.  In addition, employers are required to provide certain information on an employee’s physical or online pay stub, including:
  • The employer’s state-registered name, address, and telephone number
  • The date of the payment
  • The beginning and ending dates of the pay period
  • The number of hours worked during the pay period (unless exempt from overtime)
  • The 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
  • For employees paid at a piece rate, the applicable piece rates of pay and the number of pieces completed at each piece rate

Maryland’s Department of Labor will make available to employers a pay stub template that may be used to comply with the Wage Payment and Collection Law.  Maryland’s Department of Labor may issue orders to employers who are not in compliance with the law, impose a penalty of up to $500 for each employee who was not provided a pay stub or online pay statement in accordance with the law, and bring an action to enforce the orders.

• Salary and Benefits Posting Requirements (SB0525/HB0649): In any “public or internal” job posting, employers must include the wage range, a general description of the benefits, and any other compensation offered for a position.  This requirement applies to remote positions that will be “physically performed at least in part in the state.”  In the event the applicant did not see the posting with the required disclosures, the employer is required to give the posting or requisite information to the applicant before a discussion of compensation can be held and at any other time upon request of the applicant.  Maryland’s Department of Labor will develop a form that employers may use to comply with the law.  A “posting” means a solicitation intended to recruit applicants for a specific available position, including recruitment done directly by an employer or indirectly through a third party.  “Wage range” means the minimum/maximum hourly rate/salary for the position that an employer must set in good faith and reference (1) any applicable pay scale for the position; (2) any previously determined minimum/maximum hourly rate/salary; (3) the minimum/maximum hourly rate/salary of an individual holding a comparable position; or (4) the budgeted amount for the position.

Employers are required to keep a record of job postings for at least three years after the position is filled, or in the event the position is not filled, three years after the date the position was initially posted.  Penalties for noncompliance may be issued by the Maryland Department of Labor in the amount of $300 for each employee or applicant for whom the employer is not in compliance or, if there are multiple violations within a three-year period, $600 for each employee or applicant.

• Employment Discrimination – Military Status (SB0413/HB0598): Military status is now a protected characteristic under Maryland’s anti-discrimination law.  “Military status” means the status of being a member of the uniformed services, a member of the military reserves, or a dependent of a member of the uniformed services.
• Employment Discrimination – Sexual Orientation (HB0602 and HB1397): In addition to the preexisting protections for sex and gender identity under the Equal Pay for Equal Work Act, employers are now prohibited from offering less pay or providing less favorable employment opportunities based on sexual orientation.  The amendment (HB0602) directly nullifies the Maryland Supreme Court’s August 2023 decision in Doe v. Catholic Relief Services wherein the court determined that the State’s prohibition against “sex” discrimination does not include sexual orientation.  HB1397 further expands protections under the Equal Pay for Equal Work Act by adding to the list of protected characteristics.  Specifically, employers may not pay different wages or offer less favorable employment opportunities based on race, religious beliefs, sex, gender identity, or sexual orientation.

Maryland Employer Takeaways

These amendments impact all employers engaged in business in Maryland.  Employers should ensure compliance with the requirements of each amendment, including, but not limited to:

• Review new hire documents and employee pay stubs for compliance.
• Prepare a written notice to issue to new employees at the time of hire enclosing the employee’s rate of pay, regular paydays, and leave benefits.
• Update current policies and procedures for hiring new employees to include the required written notice and to maintain that notice for at least three years. Consider having each new employee sign the notice for record keeping.
• Work with payroll teams to update employee pay stubs to provide the required information.
• Provide training to hiring managers and other personnel on compliance with new notice and job posting requirements.
• Update all job postings, including for remote positions, to include the wage range, general description of benefits, and any other compensation offered for a position.
• Update any anti-discrimination policies to cover military status and sexual orientation.
• Provide training to managers on wage laws and the company’s policies.

This article is designed to provide one perspective regarding recent legal developments, and is not intended to serve as legal advice.  Always consult an attorney with specific legal issues.