Some legislation passed during the Maryland General Assembly’s (MGA) most recent session is set to take effect on October 1, 2024. Employers should be aware of a handful of these laws that may impact their business.
Last year, the Maryland Supreme Court held, in Doe v. Catholic Relief Services, discrimination “on the basis of sex” did not include sexual orientation under the then-current Maryland Equal Pay for Equal Work Act.
The MGA responded to the Maryland Supreme Court’s ruling by passing H.B. 602. The bill amends the Maryland Equal Pay for Equal Work Act to expressly incorporate the prohibition of sexual orientation discrimination.
Employers cannot discriminate or engage in harassment, based on military status. Discrimination includes a failure or refusal to hire, discharge, or otherwise discriminate in compensation or terms, conditions, and privileges of employment.
Harassment includes unwelcome and offensive conduct based on a protected characteristic, and:
- Submission to the conduct is made either explicitly or implicitly a term or condition of employment;
- Submission to or rejection of the conduct is used as a basis for employment decisions affecting the individual; or
- Based on the totality of the circumstances, the conduct unreasonably creates a working environment that a reasonable person would perceive to be abusive or hostile.
Beginning October 1, 2024, employers will be required to include additional information on employee’s pay stubs and pay statements. Employers will be required to include:
- Employers name (as registered with the State), address, and telephone number;
- Date of payment;
- Pay period start and end dates;
- Number of hours worked during pay period (unless employee is exempt from overtime pay);
- Rate of pay;
- Bases of pay (including bonuses, commissions on sales, etc.);
- Piece rates of pay and the number of pieces completed at each rate (for each employee paid at a piece rate);
- Gross and net pay earned during pay period;
- Amount and name of all wage deductions.
Employers that fail to comply with the requirements of the law are subject to an administrative penalty of up to $500 per affected employee.
In public and internal position postings, employers must provide a good faith wage range and general description of benefits, and any other compensation offered. A wage range is defined as “[t]he minimum and maximum hourly rate or minimum and maximum salary of an individual holding a comparable position at the time of the posting; or the budgeted amount for the position.”
If the position was not made available to an applicant, the information must be disclosed before a discussion of compensation is held or upon request of the applicant. Employers may not refuse to interview, hire, or employ an individual because they inquired about information in accordance with this law.
Written by Christina Charikofsky. Christina is a legal intern at Kollman & Saucier and a third-year student at the University of Baltimore School of Law.