Articles

October 4th, 2024

New Maryland Wage Disclosure Law Takes Effect: What Employers Need to Know

Posted in: Business Law  Featured    Tagged: Darla J. McClure

Author: Darla J. McClure

As of October 1, 2024, Maryland’s new wage transparency law, the Wage Range Transparency Act, is officially in effect. This legislation is designed to promote transparency and ensure equal pay for equal work across the state. Here’s a breakdown of the law’s key provisions and its implications for employers.

1. Requires Employers to Disclose Wage Information. Both public and private sector employers are now required to disclose key compensation details in multiple ways:

• In Job Postings: When advertising a position, employers must include:
  • The wage range for the role.
  • A general description of benefits offered.
  • Information on any other compensation available for the position, such as bonuses or stock options.
• To Employees: Current employees must be provided with wage information upon request, including wage ranges relevant to their position.

The wage information provided must reflect the actual range an employer is willing to pay for the position.

2. Mandates Record-Keeping for Job Postings. Employers must archive records of job postings to demonstrate compliance with the law. Specifically, employers must retain these records for at least three years after the position is filled. If the position remains unfilled, the record must be kept for three years from the date the job was posted.

3. Prohibits Retaliation. Employers are prohibited from retaliating against applicants or employees who exercise their rights under this law, such as requesting wage information or filing a complaint.

4. Introduces Penalties for Non-Compliance. The Commissioner of Labor and Industry is now authorized to impose civil penalties on employers who fail to comply with the new wage disclosure requirements. Penalty amounts will depend on a variety of factors.

Compliance Tips for Employers

To ensure compliance with this new law, employers should take the following steps:

• Review and update job postings to include the wage range, a description of benefits, and details on other forms of compensation.
• Develop a system to archive job postings and keep records for at least three years.
• Familiarize HR teams with the new requirements.
• Train managers in compliance requirements.

If you have any questions about what is required under the new law, contact Stein Sperling’s employment law department.

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