A Breakdown of Maryland’s New Pay Statement and Pay Transparency Laws Effective October 1, 2024
As of October 1, 2024, the Maryland Department of Labor will introduce new laws regarding pay and benefits job posting requirements. These laws expand the state’s Equal Pay for Equal Work Act (EPEQA) and add pay statement requirements.
Here is a breakdown of the new laws and how they could impact your organization.
Key Features of Maryland’s New Pay Statement and New Pay Transparency Laws
Pay and Benefits Required in Job Postings
All employers in Maryland, irrespective of their size, must:
include a wage or wage range and a general description of benefits and other compensation in all job postings, regardless of whether it’s an internal or external one or through third-party recruiting efforts.
provide wage information before discussing compensation if an applicant does not see the job posting.
keep records of compliance for at least three years.
Transparent Pay Information & More Pay Stub Details Required
Employers are now required to:
give new hires written notice of their pay rate, paydays, and leave benefits.
include the following additional details on pay stubs:
the employer’s business name
the pay period for which the wages are paid
the number of hours worked during the pay period
the specific rates of pay
gross wages
all deductions made from the gross wages
any allowances, if applicable, such as meal or lodging allowances
Expanded Equal Pay Act
Maryland’s EPEQA now includes equal opportunity and discrimination protections for sexual orientation, race, religion, and disability, in addition to sex and gender identity.
Employers are required to:
ensure equal pay for employees performing similar work unless a fair reason justifies a wage gap.
How This May Impact Maryland Organization
The purpose of Maryland’s new laws is for employers to increase pay transparency and pay equity across their hiring processes and workforces.
To prepare to comply with Maryland’s latest labor laws, review the following areas:
payroll
HR Policies.
Questions
Have questions about Maryland’s New Pay Statement and Pay Transparency Laws or how they may impact your organization? Our team of business advisory and HR experts is here to help. Contact Us.