The Maryland Department of Labor released frequently asked questions (FAQs) for employers on the Wage Range Transparency Act.
Maryland’s Wage Range Transparency Act took effect on October 1, 2024. The Act adds significant new requirements to the state’s Equal Pay for Equal Work laws. Public sector employers must understand these new rules to stay compliant.
A recent Ogletree Deakins article discusses the Wage Range Transparency Act. The Act mandates that employers disclose certain information in job postings, including a clear pay range, available benefits, and additional compensation details. This law intends to promote greater pay transparency, help job applicants make more informed decisions, and aim to close wage gaps.
The Maryland Department of Labor recently issued a set of Frequently Asked Questions (FAQs) to help understand the details of the Act.
From the Department:
B.8. Does the law apply to postings by public sector employers?
Yes. The law applies to State, county, and local governments.
C.1. What does the Wage Range Transparency law require? The law requires that an employer provide certain information in an internal or external job posting including:
- The pay range, including the minimum and maximum wage;
- General description of the benefits; and
- Any other compensation elements offered for the position. The requirement applies whether the employer posts the position directly or through a third party.
C.6. Is there a sample form that employers can use to ensure they are satisfying the requirements of the law?
Yes, the Commissioner of Labor and Industry has created a template that employers may choose to utilize. See the compensation disclosure template. The use of the template is completely voluntary. However, use of a properly completed template will satisfy the employer’s legal obligation to provide the required disclosures.
C.12. How long is an employer required to keep a record of compliance with this law?
An employer is required to keep a copy of record of compliance for each position for at least 3 years after the position was filled, or if the position is not filled, for at least three years from the date that the position was posted.
D.4. What are the penalties for a violation of the wage range transparency law?
If the Commissioner of Labor and Industry determines that an employer has violated the law, the Commissioner has the authority for a first violation to issue an order compelling compliance for the first violation. For a second violation, the Commissioner may assess a civil penalty for up to $300 for each employee or applicant for whom the employer is not in compliance.
For each subsequent violation, the Commissioner may assess a civil penalty of up to $600 for each employee or applicant for whom the employer is not in compliance if the violation has occurred within 3 years after a previous determination that a violation has occurred.
Read the Maryland Department of Labor’s frequently asked questions.
