On April 25, 2024, Governor Wes Moore signed a bill requiring Maryland employers to include wage ranges and benefit information in external and internal job postings.
The new law, which takes effect October 1, 2024, will apply to all employers, regardless of size, as well as third-party recruiters. Employers will now be required to disclose in any job posting the wage range, defined as the minimum and maximum hourly rate, or the minimum and maximum salary. In addition, employers will be required to disclose a general description of benefits and any other compensation offered for the position.
In a catch-all, if any job posting was not made available to an applicant, the employer must disclose the wage range, benefits and compensation information before a discussion of compensation is held with the applicant, and at any other time upon the request of the applicant.
The Maryland Department of Labor will be providing employers with a standard form that can be used to satisfy the requirements of the new transparency law.
The new law also includes a records-retention provision that requires employers to maintain a record of compliance with the pay transparency law for at least three years after the position is filled. If the position is not filled, employers still must maintain records of compliance for three years after the position was initially posted.
Fortunately, the pay transparency law does not provide applicants with a private right of action. Enforcement will be left to the State. In the event of a violation, employers can expect the following action:
- For a first violation, the issuance of a compliance letter.
- For a second violation, a civil penalty of up to $300 for each employee or applicant for employment for whom the employer is not in compliance; or
- For each subsequent violation, a civil penalty of up to $600 for each employee or applicant for employment for whom the employer is not in compliance if the violation occurred within 3 years after a previous determination that a violation had occurred.
Because the penalties are assessed based upon the number of applicants, it will be critical for employers to keep disclosure records for each applicant who applied to a position, regardless of whether that person was selected for the job.
In assessing penalties, the Department of Labor is required to consider the following factors:
- the gravity of the violation;
- the size of the employer’s business;
- the employer’s good faith; and
- the employer’s history of violations under this subtitle.
The transparency requirement will only apply to a position or work that will be physically performed, at least in part, in Maryland.