Maryland DOL Adds to Its Guidance on the New Pay Transparency and Paystub Notice Obligations
As of October 1, 2024, employers with Maryland employees are subject to new wage range posting and paystub notice obligations, as detailed in our April 10, 2024 E-lert. In September, the Maryland Department of Labor issued FAQs and other resources to assist employers in complying with the new obligations, which we discussed in our September 11, 2024 E-lert. And now the MDOL has added to those FAQs.
Background on Wage Transparency Requirement. Maryland’s Equal Pay for Equal Work Act now imposes more expansive disclosure obligations on employers, including the following:
- Posting Requirement: Employers must include the following in any internal or external job posting:
- the wage range,
- a general description of benefits, and
- any other applicable compensation.
If the posting is not available to the applicant, it must be provided to the applicant before any discussion of compensation is held with the applicant and at any other time on request of the applicant.
- Record Retention Requirement: Employers must retain records of compliance for at least three (3) years.
“Wage range” is defined as the minimum and maximum hourly rate or salary, set in good faith by reference to one of the following:
- any applicable pay scale;
- any previously determined minimum and maximum hourly rate or salary for the position;
- the minimum and maximum hourly rate or salary for an individual holding a comparable position at the time of the posting; or
- the budgeted amount for the position.
The Wage Transparency Guidance: The MDOL has updated its FAQs to make the following points:
- The law applies only to postings made on or after October 1, 2024, but employers must comply with the law for any reposted positions after October 1.
- All solicitations, whether internal or external, are covered, including but not limited to the following: newspaper ads and printed flyers; social media posts; and e-mails sent to multiple applicants or through an electronic mailing list.
- The law does not require employers to post all job opportunities; it only requires employers to comply with the law if they post an opening.
- Employers may use a “Help Wanted” sign on a vehicle or building as long as applicants are subsequently provided with or can readily access the required information. A sign could have a website address or QR code that links to the required information. Employers can email the information to online applicants or hand a document with the information to walk-in applicants.
- If the employer is offering a single fixed rate, the posting would include the fixed rate.
- Employers may have a link in a posting to the wage range and benefits, as long as all required information is included in the link and it is easily accessible.
Background on the Paystub Notice Requirement. The physical paystub or the online pay statement must now contain extensive and specific required information, to include the following:
- The employer’s name as registered with the State, address and telephone number;
- The date of payment and the beginning and ending dates of the pay period for which the payment is made;
- For non-exempt employees, the number of hours worked in the pay period;
- The rates of pay;
- The gross and net pay earned during the pay period;
- A list of additional bases of pay, including bonuses, sales commissions, or anything else; and
- For piece-rate employees, the applicable piece rates of pay and number of pieces completed at each rate.
The Paystub Notice Guidance: The MDOL has added the following information of significance to its FAQs on the paystub or pay statement notice:
- The law applies to workers subject to a collective bargaining agreement.
- The notice does not need to list the hours worked for employees who are overtime-exempt under federal and state law.
- The paystub law does not require leave balances to be included on the notice, but the Maryland sick and safe leave (SSL) law separately requires employers to provide a written statement of each employee’s SSL balance with each paycheck. According to the MDOL, the best practice would be to include the SSL balance on the notice.
- No notice is required if the employee worked no hours during the pay period and will not receive any wages (as paid time off or otherwise).
- A notice generated by a third-party processing company must still include the name of the actual employer.
- In cases involving joint employers or parent-subsidiary companies, employers should consult with legal counsel about which employer(s)’s name should be listed on the notice.