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Maryland Pay Transparency Act 

16 Apr

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Update Applicable to:Effective date
All employers with at least 1 worker performing physical work, at least in part, in MarylandOctober 1, 2024


What happened?

On April 1, 2024, the Maryland legislature passed HB 649 which, if signed by Governor Wes Moore, will mandate pay information in job postings as a transparency measure aimed at reducing pay inequity. 


What are the details? 

If approved, employers would be required to:

  • Disclose in each public or internal posting for each job position:
    • Wage information range (in minimum and maximum salary or hourly rate).
    • Any other compensation offered for the position.
  • If the public or internal posting was not made available to an applicant for the position, the above information must be made available to the candidate (applicant or current employee):
    • Before a discussion of compensation is held.
    • Any other time on request of the applicant.
  • Post in each public or internal posting the required information in the law.
  • Prohibits taking a retaliatory action against the candidate for exercising any rights under the act.
  • Recordkeeping for at least 3 years.


The Maryland Division of Labor and Industry must develop a form that employers could use to communicate the required pay and benefits information to comply, and employers would be able to comply by including the completed form in each public or internal job posting and otherwise making it available to applicants as required. 

If an employer is non-compliant, after a notice to cure, fines can be imposed for each employee or applicant ranging from $300 to $600. 


Business Considerations 

  • Be proactive and update (or create) your policies and practices regarding onboarding. 
  • Update or develop a job posting that complies with the requirements. 
  • Although penalties for non-compliance seem low, they can quickly add up. 


Resources


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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