Does maryland have pay transparency laws?
Yes. The Maryland Pay Transparency Law (SB 525/HB 649) took effect on October 1, 2024.
Under the Maryland Pay Transparency Law, employers must disclose in both internal and external job postings, including those posted through third parties:
- Wage/salary ranges (including the minimum and maximum wage);
- A “general description” of benefits; and
- “Any other compensation” offered for a posted position (g., bonuses, commissions).
If a job posting does not initially include this information, employers must provide it to applicants before any discussions about compensation and upon request at any time during the hiring process.
Who Must Comply with the Maryland Pay Transparency Law 2024?
The MD pay transparency law applies to “any position for work that will be physically performed, at least in part” in Maryland. This includes remote roles performed by Maryland-based employees, even if the employer is located outside of the state.
Recordkeeping Obligations
Employers are required to retain records demonstrating compliance for three years from either:
- The date the position is filled; or
- If unfilled, the date the job was first posted.
These records must include details such as wages, job classifications, and employment terms.
Pay Transparency Maryland State Resources and Tools
The Maryland Department of Labor (MDDOL) has issued FAQs regarding the interpretation of the MD pay transparency law. In addition, the MDDOL released a model wage disclosure form and related instructions. Use of the form is optional, but the MDDOL will consider its use as compliant with the law’s disclosure requirements.
What Steps Should Employers Take to Comply with the Maryland Pay Transparency Law?
To comply with this new law on pay transparency, Maryland employers, as well as those with Maryland-based employees should:
- Audit job postings to ensure wage ranges, benefits, and other compensation details are disclosed in good faith.
- Train recruiters and hiring managers on the law’s requirements and how to write compliant postings.
- Review and update recordkeeping policies to ensure they meet the law’s three-year retention requirement.
- Consider using the MDDOL’s model wage disclosure form to streamline compliance.
Employers should consult with experienced human resources professionals and/or labor and employment counsel with any questions regarding the Maryland pay transparency law. For all MEA members, the Hotline is available to provide this assistance. For MEA Essential and Premier members, a Member Legal Services attorney is available for additional consultation.
