In Maryland’s 2024 General Assembly Session, new laws passed that impact employers as of October 1, 2024: the Maryland Wage Range Transparency Act and the Pay Stub and Pay Statement Law. These laws have been passed in order to ensure accurate information and fairness in the workplace.

Pay Transparency Law

The “Equal Pay for Equal Work – Wage Range Transparency Law” requires employers to include details of a position’s wage and benefits in all job postings. This applies to jobs – including remote – at least partially performed in Maryland, but not those where work is occasionally in Maryland, such as only attending meetings.

To comply with this new requirement, employers must provide in every posting a minimum and maximum pay range based on existing pay scales, budgets, or wage determinations. If hiring for a role with multiple locations, employers must provide the wage ranges for each location.

Employers also must maintain a record of the wage ranges they include in their postings for at least three years after the position is filled. If a job posting was not available to an applicant, employers need to provide this information at the request of the applicant before any additional discussions about compensation.

Pay Stub and Pay Statement Law

This law expands Maryland’s wage payment requirements to enhance transparency and clarity for employees. Under Chapter 305, employers must give employees a written or online pay statement every payday beginning on October 1, 2024.

These pay statements must include:

• The employer’s name, address, and contact information
• Dates of payment and the entire pay period
• The amount of hours worked for non-exempt employees
• The included pay rates and methods of payment, such as commissions or tips
• Gross and net pay for the given pay period, including detailed deductions
• For piece-rate workers, the number of pieces completed and the related rate of pay

In addition, employees are now required to give new hires a written notice that outlines their pay rate, pay day schedule, and leave benefits. Employers also must communicate any change in pay dates or reductions in wages one full pay period in advance of the change taking effect. This does not include wage increases. Failure to comply with these new requirements could result in penalties of up to $500 per employee.

Steps for Employers

Employers should take the following steps to avoid penalties and make sure they are in compliance with these new laws:

• Records: Implement a process for keeping a record of all job postings and wage disclosures for at least three years in the event of an audit.
• Job Postings: Review all internal and external postings to confirm that wage disclosures are included.
• Payroll and Pay Stubs: Make sure your payroll system is updated to create pay statements that are in compliance with the new law.
• Training: Familiarize your HR and payroll staff with the new laws and the resulting changes they must make to their work.
• Access Resources: For more information, employers can access the Department of Labor’s website, featuring related instructions, FAQs and templates.

Dembo Jones frequently helps clients navigate new payroll requirements to ensure they are in compliance. Get in touch to see how we can help.