Effective October 1, 2024, Maryland Wage Transparency Law (SB 525/HB 649) requires employers to publish wage ranges, a general description of benefits, and any other compensation in all internal and external job postings.
Existing Maryland law requires disclosure of a wage range upon request and prevents employers from requesting an applicant’s wage history. The law applies to positions that are physically performed, at least in part, in Maryland or which report to a person or office located within Maryland. The Maryland Department of Labor is expected to issue guidance that may help clarify the applicability to remote and hybrid work.
Wage range means the minimum and maximum hourly or salary wage for a position based on any pay scale, a previously determined minimum and maximum hourly or salary wage, the minimum and maximum hourly or salary wage of current employees holding equivalent positions, or the budgeted amount for the position.
The wage range must be disclosed in any public or internal job postings. The job posting must also include a general description of the position, benefits, and any other compensation offered.
Employers must maintain records of wages, job classifications, and other employment conditions for three years after a position is filled or the job posting is made if the position remains unfilled.
In addition to claims brought by the individual authorized by the statute, Maryland’s labor commissioner may impose penalties for non-compliance:
- 1st violation: commissioner issues a compliance letter to the employer
- 2nd violation: assessed penalty of up to $300 for each affected employee or applicant
- Subsequent violations: if further violations occur within three years of a previous violation, the employer may face a civil penalty of up to $600 for each employee or applicant affected
Proactive steps for Maryland employers include:
- Review compensation to ensure internal equity and that wage rates are set consistently
- Review job posting to ensure they align with the requirements of the new law
- Maintain records of wages, job classifications and other relevant employment data