Human Resources / Maryland Adopts Pay Transparency Requirements

Maryland Adopts Pay Transparency Requirements

Maryland has become the latest in a growing list of states to adopt pay transparency requirements, with our governor recently signing the Maryland Wage Range Transparency Act into law.

The revised legislation brings substantial changes to the Equal Pay for Equal Work Law. Under the new law, all employers, regardless of their size, are mandated to provide comprehensive information in their job postings for any work to be physically conducted, at least partially, within Maryland.

What does this mean for employers?
When writing a job description or posting, employers must now disclose:

  • A wage and salary range in good faith
  • A broad outline of available benefits
  • A general overview of any additional compensatory offerings

Even in the absence of a job posting, employers must give this information promptly upon request by an applicant or before initiating any discussion regarding compensation.

Employers must also keep in mind the recordkeeping obligations stipulated in the act. This means you should keep records demonstrating compliance with the new law for a duration of three years starting from either the date the position was filled or, if the position remains unfilled, from the initial posting date.

When does this go into effect?
The law will go into effect Oct. 1, 2024.

Violations will be subject to enforcement measures by Maryland’s Commissioner of Labor and Industry. First violations will be subject to a compliance order, while second violations may result in up to a $300 penalty for each applicant for whom the employer is not in compliance.

What else do employers need to know?
It’s not just Maryland. Following Washington, D.C.’s adoption of similar laws, along with President Biden’s recent announcement requiring pay transparency for federal contractors, Maryland’s adoption of pay transparency requirements suggests long-term interest in such legislation across the country. Other states including New Jersey, New York, California and West Virginia have adopted similar such laws.

How Can BlueStone Services Help
BlueStone Service’s human resources outsourcing team will be closely monitoring developments on this matter and are happy to discuss this new law and its required reporting with you further.

We are also ready to assist organizations with their job postings and notices. To learn more about our services, please contact us today!

 

 

 

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