Maryland has expanded its pay transparency law, set to take effect on October 1, 2024. Employers will now be required to proactively disclose the wage range, benefits, and any other compensation for each open position in their internal and external job postings. The law applies to recruiters and third parties soliciting applicants on behalf of an employer as well.
The wage range should be set in good faith, referencing an applicable pay scale, previously determined minimum and maximum rates, comparable positions, or the budgeted amount for the position. The law only covers positions where the work will be physically performed in Maryland at least in part.
Employers must maintain a record of compliance with the law’s requirements for each position for at least three years after the position is filled or posted. There is no private right of action, but an applicant or employee may file a complaint with the Commissioner.
Employers should begin planning to comply with the law’s requirements, including whether they will use the Commissioner’s form. They should also determine which of their positions may be performed in Maryland at least in part, to ensure they are including the required information in the appropriate job postings.
Maryland employers have already been providing wage ranges to applicants upon request, but they must now be ready to publicize that wage range, along with a summary of benefits and any other compensation, in all job postings for positions for which work may be performed in Maryland. Mintz’s Employment practice is available to assist employers with pay transparency practices going forward.
