GovCon Employer Alert: Maryland’s Wage Range Transparency and Pay Stub and Pay Statement Laws To Take Effect October 1, 2024

Beginning on October 1, 2024, Government contractors that employ workers in Maryland are going to have to comply with new rules under Maryland’s Wage Range Transparency law and Pay Stub and Pay Statement law.? These new rules require employers to provide wage range information to job applicants and in job postings and to provide pay stubs and certain pay statement information to their employees.

Job Applicant and Job Postings

? ? ?Maryland’s Wage Range Transparency law requires employers to provide certain information in internal or external job postings, including pay range, a general description of benefits, and any other compensation elements offered for the position.?

? ? ?The required wage range must include the minimum and maximum salary or hourly rate of compensation for the job, promotion, or transfer opportunity that the employer in good faith believes to be accurate at the time of posting.? The wage range does not include other forms of compensation or benefits such as potential tips, employer provided insurance, paid leave including vacation time or retirement savings.

? ? ?The required general description of benefits includes employer provided insurance such as health or life or other employer-provided insurance; paid or unpaid time off work such as paid sick or vacation days, or leaves of absence; retirement or savings funds such as 401(k) plans or employer-funded pension plans; and other forms of compensation such as the value of employer-provided meals or lodging.? Other compensation elements include any other earnings or monetary compensation an employee may receive as payment including overtime, premium pay, tips, commissions, bonuses, and stock options.

? ? ?If the employer’s posting on wage range, benefits and other compensation elements was not made available to a job applicant, the employer is required to disclose the posting when requested by the applicant and before any discussions of compensation with the applicant.

At Time of Hire

? ? ?Maryland’s Pay Stub and Pay Statement law requires employers to provide written notice to employees at the time of hire that provides rates of pay, paydays, and leave benefits.

On Pay Days

? ? ?In addition, the Pay Stub and Statement law requires employers to provide employees with a written or online pay statement every payday that must include the following information:

• Employer’s name (as registered with the State of Maryland), address, and telephone number
• Date of payment
• Beginning and ending dates of the pay period
• Number of hours worked during the pay period (unless the employee is exempt from federal and State overtime requirements)
• All rates of pay
• Additional bases and amounts of pay, including bonuses, commissions on sales or other bases
• Applicable piece rates of pay and the number of pieces completed at each piece rate for each employee paid at a piece rate
• Gross and net pay earned during the pay period
• Amount and description of each deduction made from pay

The Maryland Department of Labor’s webpage provides a link to a pay stub template that meets the pay statement requirements, as well as links to sample wage transparency forms.?

? ? ?Government contractors with Maryland employees should make sure that their job posting, hiring and onboarding documentation meets the new requirements and should make sure their payroll processing systems or providers meet the new pay statement requirements.