Maryland Adopts Pay Transparency Requirements

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

The new law significantly amends Maryland's Equal Pay for Equal Work Law and will now require employers, regardless of size, to disclose a 1) good faith wage and salary range, 2) a general description of any benefits, and 3) a general description of any other compensation that might be offered in job postings for any work “that will be physically performed, at least in part,” in Maryland. If no posting is created, employers must still disclose this information to an applicant upon request, or at any time before a discussion of compensation is had with an applicant. 

The law does not specify what qualifies as an appropriate “general description of benefits and any other compensation offered.” 

Employers should also be mindful of the recordkeeping requirements of the act, which requires employers to maintain records of compliance with the new law for a period of three years from the date the position was filled (or if the position is ultimately not filled, from the date the position was initially posted). 

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. For each subsequent violation within a three-year period, such penalties escalate to up to $600 per instance of non-compliance.

Following Washington, D.C.'s adoption of similar requirements, along with President Biden's recent announcement requiring pay transparency for federal contractors, Maryland's adoption of pay transparency requirements signals the continuing interest in such legislation across the country. As more states continue to consider and adopt these measures, employers must continue to be attentive to this evolving patchwork of pay transparency requirements.