The pay transparency landscape is advancing in Maryland with the introduction of the Wage Range Transparency Act. Starting October 1, 2024, this legislation will enhance pay transparency protections for workers, ensuring greater fairness and equity in the job market.
What Changed with Maryland Pay Transparency?
Maryland is joining many other jurisdictions that are enacting stronger pay transparency requirements with its amendments to Senate Bill 525 (SB525). (To learn more about pay transparency across the states, check out our Pay Transparency Cheat Sheet here.)
This legislation mandates that companies operating in or hiring in Maryland disclose wage ranges and a general description of benefits in all job postings, promotions, and transfers, both publicly and internally.
Previously, Maryland's law required companies to share wage information only upon request by applicants. SB525, which will go into effect on October 1, 2024, goes a step further, ensuring that this information is proactively provided in job postings. This transparency helps candidates make informed decisions and promotes equity in the hiring process.
Companies must include wage ranges in all job postings, covering new positions, promotions, and transfers. The law defines “wage range” as the minimum and maximum hourly rate or salary for a position, set in good faith. This good faith determination can be determined by utilizing any applicable pay scale, previously determined pay ranges, comparable positions' pay, or the budgeted amount for the position.
A general description of benefits and other compensation offered must also be disclosed in job postings. While the law does not provide parameters on what this specifically entails, the Maryland Department of Labor will be providing a form that companies can fill out and include with each posting to comply with the new requirements under the Wage Range Transparency Act.
The term “posting” includes any solicitation intended to recruit applicants for a specific available position, whether done directly by a company or indirectly through a third party.
The law protects applicants and workers from retaliation for exercising their rights under this legislation.
Companies are required to maintain records evidencing their compliance with these new posting requirements for at least three years after the job was filled or posted (if never filled).
For the law to apply, the position must be physically performed, at least in part, in Maryland. This ensures that the transparency measures impact the local job market directly.
Maryland’s amendments to SB525 signifies a significant step toward greater pay transparency, benefiting the workforce within the state. Compliance is key as this new law does come with potential civil penalties for each violation that occurs.
The new law does not provide a private right of action. Instead, it grants the Commissioner of Labor and Industry the authority to issue an order compelling compliance for the first violation. Following such an order, the Commissioner may, for a second violation, impose a civil penalty of up to $300 “for each employee or applicant for whom the employer is not in compliance,” escalating to a maximum $600 civil penalty for each subsequent violation that occurs “within 3 years after a previous determination that a violation had occurred.” (Md. Code Ann., Lab. & Empl. § 3-308(e).
This amendment is a win for both workers and companies. For workers, it promotes fairness and transparency, allowing them to evaluate job opportunities based on clear compensation expectations. For companies, it fosters trust and can help attract top talent by demonstrating a commitment to equitable practices.
While it can be difficult for companies to keep up with ever-changing pay transparency requirements, TCWGlobal is here to help! We are actively monitoring law changes, and we are here to assist you with your compliance and staffing needs.
We help you navigate employment contracts, tax compliance, workforce flexibility, and risk mitigation, all tailored to your unique business requirements. Contact us today at hello@tcwglobal.com to discover how we can help your organization thrive in today's dynamic work environment.