Employment Law Update: Maryland’s New Pay Transparency Law Becomes Effective October 1, 2024
Date: May 8, 2024
By:
Randi K. Hyatt
With the new law, effective October 1, 2024, all Maryland employers (regardless of size, sector, or industry) will need to provide, for all public or internal job postings, and for any position that will be physically performed, in part, in Maryland: (1) the wage range for the position, and (2) a general description of benefits and any other compensation offered for the position.
The Act defines “wage range” as the minimum and maximum rate or salary for the position which must be set in good faith by using: (i) any applicable pay scale; (ii) any previously determined wage range; (iii) the wage range of an individual holding the same or comparable position; or (iv) the budgeted amount for the position. The Act does not define “a general description of benefits and any other compensation offered.”
A “posting” is defined as “a solicitation intended to recruit applicants for a specific available position” and includes recruiting done directly by the employer or indirectly by a third party. If there is no posting created for a position, employers must still disclose the information upon request, or at any time before a discussion on compensation is had.
The Maryland Commissioner of Labor and Industry has stated it will publish a form that employers may use to comply with the law, which should also help with the extent of information to be disclosed for the benefits and any other compensation offered. Employers need to retain these records for at least three (3) years after a position is filled or initially posted.
The Act does not permit employees to file their own lawsuit for violations of the law. Instead, employees and applicants may file complaints with the Commissioner, who is empowered to issue an order compelling compliance and imposing civil penalties up to $300 for each employee or applicant for whom the employer is not in compliance, with escalation penalties for repeat offenders.
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.