What happened?

On April 25, 2024, Governor Wes Moore signed HB 385, known as the “Wage Payment and Collection – Pay Stubs and Pay Statements – Required Information,” which mandates employers to provide expanded information to their employees for each pay period.

What are the details?

Key Bites

• The notice required under current law of the employee’s rate of pay, regular paydays, and leave benefits that an employer must provide to a new employee at the time of hiring, now expressly (per the amendment) must be written.
• For each pay period, a written statement on the physical pay stub or online pay statement must include (unless exempt from overtime according to federal/state laws):
  • Employees name, address, and telephone number
  • The date of payment and beginning and ending dates of the pay per period for which the payment is made
  • Number of hours worked during the pay period
  • Rate of pay
  • Gross and net pay earned
  • Amount and name of deductions
  • List of additional bases of pay (bonuses, commissions, etc.)
  • For pay at a piece rate, applicable piece rates and the number of pieces completed at the rate
• The Commissioner of Labor and Industry must create and make freely available to employers a pay stub template that employers may use to comply.
• The bill specifies enforcement provisions, which include authorizing the Commissioner of Labor and Industry to issue orders to comply with the bill, impose an administrative penalty of up to $500 for each employee who was not provided a pay stub or online pay statement, and bring an action to enforce the orders under specified conditions.
• An employer may request an administrative hearing under specified conditions.
• The requirements can likely be absorbed within existing budgeted resources.
• The bill does not apply to local governments as employers

Business Considerations

• Employers should familiarize themselves with the details and understand what information they are required to provide to their employees in their pay stubs and written notice.
• Employers should update their pay subs and ensure that all new hires receive a written notice detailing their rate of pay, regular paydays, and leave benefits at the time of hiring.
• Employers should consider using the free pay stub template provided by the Commissioner of Labor and Industry to ensure compliance.
• Employers should be aware that the Commissioner of Labor and Industry can enforce compliance and impose penalties. Ensure your practices are in line with the bill to avoid penalties.
• Employers should know that they can request an administrative hearing under specified conditions if they disagree with a penalty or enforcement action.

Source References

• Maryland House Bill 385/SB 38

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