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Maryland Amends Employment Labor Requirements in Several Instances

18 Jun

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Update Applicable to:Effective date
All employers with at least 1 worker who performs work, at least in part, in the stateOctober 1, 2024


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

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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