Sophia Serrao
Tues., October 15, 2024
Effective October 1, 2024, the State of Maryland updated its wage range transparency law. The law applies to all employers in, or doing business in, the State, and requires employers to be more transparent about wages, benefits, and compensation in job postings and paychecks. The updates come on the heels of other states (including California, Washington, and Colorado) and municipalities like New York City which are also requiring employers to post realistic compensation information in their job postings. These laws give job applicants a more realistic picture of the employment opportunities and a better understanding of their prospective earnings.
The “Equal Pay for Equal Work – Wage Range Transparency” law now requires employers to include wage ranges in internal and external job postings. The wage range must be in “good faith” and include the minimum and maximum hourly or salary rate for the posting or the budgeted amount for the position. Employers are also required to disclose a general description of benefits, such as health insurance, retirement, and paid time off, within the job postings. Lastly, the job posting must also include any other compensation offered for the position such as overtime, compensatory time, commissions, or bonuses. The wage range and compensation rules apply to any job openings that do all or some part of the work in Maryland. These requirements also apply whether the job posting is done directly by the employer or through a third party.
The Maryland Department of Labor’s website provides sample templates for employers to comply with the new disclosure requirements, which can also inform prospective employees of the law’s requirements. If an employer fails to comply with the new wage transparency laws, they can face civil penalties which could include a fee per applicant.
McGillivary Steele Elkin LLP represents workers across the country in wage disputes. If you think a prospective employer violated Maryland’s pay transparency law, contact us.
