By: Morgane Barry, Law Clerk
Maryland Governor Wes Moore recently signed Senate Bill 525/House Bill 654 into law, amending and repealing parts of Maryland’s Equal Pay for Equal Work provisions under § 3-301 through § 3-308 of the Maryland Code. Effective October 1, 2024, the Wage Range Transparency Act mandates that all private and public employers must, in good faith, disclose a wage range for all external or internal position postings, whether such posting is made directly by the employer or indirectly by a third party. This requirement extends beyond just salary or hourly wages and includes any other forms of compensation or benefits related to the position, such as housing allowances.
Employers are required to base the disclosed wage range on the following factors:
· applicable pay scales;
· prior pay for the position;
· pay for comparable positions at the time of posting;
· or the budgeted amount allocated for the position.
The Act applies to positions physically performed entirely or partially within Maryland and provides protection against retaliation for both current employees and external applicants who inquire about wage ranges.
While the Act does prohibit the pursuit of legal actions by applicants or employees against noncompliant employers, the Commissioner of Labor and Industry may impose fines ranging from $300 to $600 per violation. Furthermore, the Commissioner will provide employers with a compliance form closer to October to help ensure adherence to the law. Employers must also establish and maintain a record-keeping system that retains postings for at least three (3) years from the date the position is filled or, if unfilled, from the date of posting.
Several states enacted similar legislation, including Colorado, California, and New York, with Vermont and Minnesota set to follow next year. However, Virginia’s governor vetoed a similar bill earlier this year. These legislative changes aim to narrow wage disparities for women and people of color during the job application process and salary negotiations. As a result, employers can expect a growing trend in the coming years, with both state governments and the federal government implementing broader wage transparency laws.
If you would like to speak to an attorney about the Wage Range Transparency Act and how it affects you or your business, please contact Batoff Associates, P.A. at 410-864-6211.
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