New Pay Transparency Law in Maryland
On October 1, 2024, Maryland’s Equal Pay for Equal Work – Wage Range Transparency law will go into effect. The law sets forth new compensation disclosure requirements for Maryland employers.
The new law, which applies to those employers “engaged in a business, industry, profession, trade, or other enterprise in” Maryland, expands upon the existing requirements of the Maryland Equal Pay for Equal Work Act.
Under the statute, for employment positions that will be physically performed in Maryland, employers must “disclose in each public or internal” job posting the “wage range and a general description of benefits and any other compensation offered for the position”.
“Wage range” is defined as the minimum and maximum hourly rate or salary for the position determined by the employer in “good faith reference” to:
1. any applicable pay scale;
2. any previously determined minimum and maximum hourly rate or minimum and maximum salary for the position;
3. the minimum and maximum hourly rate or minimum and maximum salary of an individual holding a comparable position at the time of the posting; or
4. the budgeted amount for the position.
If the employer’s public or internal posting for a position was not made available to an applicant, the employer must disclose to the applicant the required wage range, benefit and other compensation information prior to having any discussion with the applicant about compensation and at any other time on the request of the applicant.
Further, employers are prohibited from retaliating against an applicant or employee for not providing the employer with their wage history, requesting from the employer the wage range information, or exercising their rights under the law.
Covered employers must keep records demonstrating their compliance with the disclosure requirements for each position for at least 3 years following the date the position is filled or, if the position is not filled, the position was initially posted.
For additional information contact please employment law attorney Charles H. Henderson.
Disclaimer: Any opinions raised in this blog are solely those of the author. The information contained in this blog is general in nature and is not offered, and cannot be considered, as legal advice for any situation.