Maryland will have two significant laws go into effect on October 1, 2024. The Wage Range Transparency Act will require employers to provide employees with more upfront information about a job’s wages and benefits in job postings. The Pay Stubs and Pay Statements Law will require employers to provide a written or electronic pay statement each payday that includes specific information. Both laws are designed to increase transparency and ensure that employees and job applicants have access to important wage information.

Fortunately, the Maryland Department of Labor (MDOL) has provided several resources, including templates for each law, to assist employers with compliance when posting jobs and creating pay statements.

Wage Transparency Requirement

Maryland’s Equal Pay for Equal Work Act currently requires employers to provide the wage range for a job position in question only upon an applicant’s request. This new law imposes further requirements. Employers must include the wage range, description of benefits, and other applicable compensation when posting a job. Furthermore, if an applicant didn’t view this job posting, it must be provided to them before any compensation discussion occurs.

The following compliance resources have been provided by the MDOL:

• Wage Range Transparency FAQs (Website)
• Narrative Examples (Word Download)
• Compensation Disclosure Form (PDF)
• Compensation Disclosure Form Instructions (PDF)

If an employer uses the MDOL’s form, it will be deemed to be in compliance with its posting obligation under the law. However, an employer is not required to use the form and the MDOL also provides other narrative examples of postings which are also compliant under the law.

Paystub Notice Requirement

Currently, employers must give notice regarding the rate of pay, the regular paydays, and leave benefits at the time of hiring. They must also provide a statement of the employee’s gross earnings and any deductions for each pay period.

The new law clarifies that these notices must now be in writing. In the case of the pay period statements, the required information must be on the physical pay stub or the online pay statement. The new law also expands the information that must be provided each pay period.

The following compliance resources have been provided by the MDOL:

• Pay Statement FAQs (Website)
• Pay Stub Template (Excel Download)
• Pay Statement Template Instructions (PDF)

Similar to the Wage Transparency guidance, if the employer uses the MDOL’s template for the paystub notice, that will be considered compliance with the law.

Next Steps

Employers should review and update their onboarding procedures and paystubs to include the information required by the new laws, ensuring compliance by the October 1, 2024 deadline.  With proper preparation, employers can ensure they comply with Maryland’s new transparency measures and avoid potential penalties.