Maryland’s Wage Range Transparency Law
Over the past few years, multiple states and jurisdictions have passed pay transparency laws requiring employers to disclose salary ranges in job postings or upon request to employees or to the public. These laws are intended to promote fairness and reduce pay disparities based on factors such as race, gender and ethnicity.
The State of Maryland is among the states that have enacted pay transparency laws. On October 1, 2024, Maryland’s Equal Pay for Equal Work – Wage Range Transparency law went into effect. This law requires employers to disclose the minimum and maximum hourly or salary ranges for both internal and external job postings. The law applies to any full-time or part-time job that is physically performed in the State of Maryland. This means that employers operating in states without wage transparency laws but are seeking employees from states with wage transparency laws must ensure they are including the appropriate information in their postings.
Job Posting Requirements
For internal or external job postings published on or after October 1, 2024, the law requires employers to provide the following information:
- Pay range, including the minimum and maximum wage or fixed hourly rate
- A general description of benefits
- Other compensation elements offered with the position
These requirements apply whether the employer posts the position directly or through a third-party.
Job postings are classified as job openings promoted via social media posts, newspaper advertisements, flyers, emails and advertisements published through any print or digital medium. This also applies to job postings made by or on behalf of the employer, including job recruiters or job listing websites such as Indeed, LinkedIn and Monster.
Employers are required to keep a record of compliance for each position for at least three years after the position was filled, or, if the position was not filled, for at least three years from the date the position was posted.
What Benefits Are Required to Be Listed?
The wage transparency law requires job postings to include a general description of benefits. Some examples of benefits that are required to be listed include:
- Employer provided insurance – health, life or other provided insurance
- Paid or unpaid time off work – paid sick days, vacation days or leaves of absence
- Retirement or savings funds – 401(k) plans or employer-funded pension plans
What Does “Any Other Compensation Offered” Mean?
In addition to requiring wage range and benefits, the law also requires employers to include “any other compensation offered.” This requirement is meant to broadly cover any additional earnings or monetary compensation that an employee may receive as payment in return for work performed. Examples of this include:
- Overtime pay
- Compensatory time
- Differentials
- Premium pay
- Tips
- Commissions
- Bonuses
- Stock or stock options
- Any portion of service charges
If an employer has a question on whether something is considered “any other compensation,” they can email the Division of Labor and Industry’s Wage and Labor Standards Enforcement Unit at workright@maryland.gov.
Compliance and Penalties
If the Maryland Commissioner of Labor and Industry determines that an employer has violated the wage transparency law, the Commissioner has the authority to issue an order compelling compliance for the first violation. For a second violation, the Commissioner may assess a penalty up to $300 for each employee or applicant for whom the employer is not in compliance. For each subsequent violation occurring within three years of a previous violation, the penalty will increase up to $600 per affected employee.
Businesses with job openings that are physically performed in Maryland should review all regulations and requirements within Maryland’s Wage Range Transparency law in order to maintain compliance. If you have any questions regarding compliance with job postings under this new law, please reach out to the Brown Plus Human Resources Consulting Practice.