Complete Guide to Maryland Pay Transparency and Wage Disclosure Laws

Maryland has been steadily stepping up its efforts to tackle wage inequities with stronger pay transparency and wage disclosure laws. These regulations aim to create fairer workplaces by ensuring employees have clear information about compensation before accepting a job or negotiating pay. For employers, the rules bring new requirements that demand attention to ensure compliance.

Recent changes to Maryland’s pay laws reflect a growing focus on accountability in hiring and compensation practices. Amendments that took effect in late 2024 now require employers to share wage ranges and details about benefits in all job postings. These updates build on previous legislation, adding new layers of transparency to hiring processes across the state.

Pay transparency laws in Maryland aren't just about compliance—they're about fostering equity. By requiring open communication about wages, the state is working to reduce pay gaps, particularly for women and underrepresented groups. Employers who embrace these practices can help build trust, support equitable hiring, and contribute to a more equitable workforce.

Understanding Maryland's Legal Landscape

Maryland’s Wage History and Wage Range law forms the backbone of the state’s pay transparency regulations. This law, an amendment to the Equal Pay for Equal Work Law, prohibits employers from asking job applicants about their salary history and requires them to provide wage ranges upon request. On October 1, 2024, the state expanded these requirements significantly. Employers must now include wage ranges, benefit descriptions, and details about additional compensation in all job postings, whether internal or external.

The 2024 amendments were designed to reduce wage disparities at the hiring stage by ensuring pay information is available upfront. Employers must determine the minimum and maximum wages for each role based on factors like pay scales, the wages of employees in similar positions, or budgeted amounts. The goal is to eliminate negotiation imbalances that can perpetuate pay inequities.

These regulations don't just set rules—they aim to change workplace culture. Openly sharing compensation details encourages fairness in hiring while helping to address systemic pay gaps. Maryland's focus on pay transparency also aligns with national trends, ensuring the state remains at the forefront of equitable employment practices.

Employers Who Must Comply

Maryland pay transparency and equity state laws cover nearly all employers conducting business within the state. This includes public and private organizations of any size. If you employ workers in Maryland, whether full-time, part-time, or remote, these regulations likely apply to you. Positions physically performed "at least in part" in Maryland are included, meaning even remote roles with ties to Maryland fall under the law's requirements.

Some exceptions exist. Positions governed by collective bargaining agreements may not need to meet all requirements. Similarly, jobs with unique, limited scopes may also fall outside the law's coverage. Employers must review each role carefully to ensure compliance with the specific obligations of Maryland's pay transparency laws.

Required Wage and Benefit Disclosures

Maryland pay transparency and equity state laws require employers to share specific pay and benefit details in job postings. Every job listing, both internal and external, must include clear information about compensation and additional benefits tied to the role. The goal is to ensure candidates have the information they need to make informed decisions before entering pay discussions.

Explaining the Wage Range

A wage range is the defined minimum and maximum salary or hourly rate an employer is prepared to pay for a position. This range cannot be arbitrary. Employers determine it using:

• Documented pay scales: Reference established salary structures for the role.

• Comparable employee pay: Look at what employees in similar roles are currently earning.

• Budget allocations: Use the financial amount set aside in the organization's budget for the position.

The wage range must be realistic and aligned with the job's responsibilities. Broad or unclear ranges can signal inconsistency, which may lead to compliance issues or distrust among candidates.

Other Compensation and Benefits

Employers must include more than just the wage range. Job postings also need details about other forms of compensation and a general overview of benefits. Here's what employers should disclose:

• Additional compensation: Bonuses, commissions, or profit-sharing plans tied to the role.

• Benefits overview: Health insurance, retirement savings options, paid time off (PTO), parental leave, and other perks offered by the organization.

This level of detail ensures candidates understand the full value of the role beyond the paycheck. It also promotes fairness and clarity during the hiring process.

When Pay Must Be Disclosed Without a Job Posting

Not every position comes with a formal job posting. For roles filled through referrals, internal promotions, or direct outreach, Maryland's laws still require the disclosure of pay information. In these cases, employers must share the wage range, benefits, and any additional compensation before entering compensation discussions. Applicants can also request this information at any time during the hiring process, and employers are obligated to provide it.

Providing clear pay and benefit information early in the process supports transparency and reduces misunderstandings. It also helps organizations build trust with candidates and employees alike.

Prohibited Actions and Wage History Protections

Maryland pay transparency and equity state laws take significant steps to prevent pay discrimination during hiring. Employers are not allowed to ask candidates about their previous salaries at any point in the hiring process. This includes direct questions on applications, during interviews, or through third-party recruiters. The law ensures that past earnings cannot influence how an employer determines starting pay.

Compensation decisions must rely on factors such as the wage range for the position, qualifications, and relevant experience. Using salary history to set pay perpetuates inequities, and Maryland's regulations aim to end this practice entirely.

Protection Against Retaliation

Job applicants and employees are safeguarded from retaliation under Maryland's wage transparency rules. Requesting a wage range, declining to provide salary history, or reporting concerns cannot result in penalties. Employers cannot deny opportunities, reduce hours, or take adverse action in response to these lawful actions.

Retaliation protections ensure that workers can advocate for fair pay without fear. Employers who ignore these rules risk legal and financial consequences, as well as damage to workplace trust.

Supporting Equal Pay

The state’s wage transparency measures work alongside equal pay laws to address disparities. Employers must base pay exclusively on factors like skills, responsibilities, and experience. This combination of laws reduces the risk of pay gaps linked to gender, race, or other protected characteristics.

Regular pay audits can help employers verify compliance and identify potential disparities. Reviewing internal wage practices ensures that employees performing comparable work receive consistent compensation.

Reporting Violations

If an employer violates Maryland’s pay transparency or wage history rules, applicants and employees can file a complaint with the Maryland Division of Labor and Industry. The division reviews cases and issues penalties when necessary.

To strengthen a complaint, workers should keep detailed records of job postings, wage discussions, or retaliatory incidents. Clear documentation supports thorough investigations and ensures accountability.

Employers have a responsibility to comply with Maryland law. Following the rules not only avoids fines but also promotes fairness and strengthens workplace equity.

Recordkeeping and Enforcement

Maryland pay transparency and equity state laws require employers to maintain specific records for compliance. Employers must keep job postings, compensation data, and related notices for three years. These documents are not optional—they serve as proof that wage and benefit disclosures align with legal standards.

The required records include:

• Copies of job postings: Internal and external postings must include wage ranges, benefits, and other compensation details.

• Compensation documentation: Employers need to retain wage ranges, pay scales, and any adjustments made for specific roles.

• Notices provided to applicants or employees: Any communication related to pay disclosures, such as wage ranges shared during interviews or compensation discussions.

Organizing and storing these records properly is non-negotiable. Missing or incomplete documentation can lead to enforcement actions.

How Enforcement Works

The Maryland Commissioner of Labor and Industry enforces compliance through a structured process. Each step escalates penalties based on the severity and frequency of violations.

• First violation: Employers receive a compliance letter. The letter identifies the issue and requires corrective action.

• Second violation: A fine of up to $300 per affected employee or applicant is issued if the employer fails to comply after the first warning.

• Subsequent violations: Repeat offenses within three years result in fines of up to $600 per affected individual.

The Commissioner considers several factors when determining penalties. These include the employer's history of violations, the seriousness of the noncompliance, and whether the employer acted in good faith. Employers with larger workforces may face higher scrutiny.

To avoid penalties, employers should prioritize accuracy in job postings and consistency in recordkeeping. Regularly auditing wage ranges, benefits, and pay practices reduces the risk of enforcement actions and ensures compliance with Maryland's evolving transparency laws.

Practical Steps to Ensure Compliance

For employers navigating Maryland pay transparency and equity state laws, compliance starts with clear, actionable steps. The goal is straightforward: align your practices with the legal requirements while fostering a fair and equitable workplace. Here's how to approach it effectively:

Review and Update Compensation Policies

Audit current compensation policies to ensure wage ranges are both accurate and well-documented. Each range must reflect realistic pay based on concrete criteria, including:

• Industry standards: Compare salaries for similar roles in your sector and region.

• Internal consistency: Match pay ranges to what employees in comparable positions already earn.

• Budget allocations: Base minimum and maximum pay on approved financial plans for the position.

Organize these determinations into a consistent format. Clear documentation ensures transparency and can safeguard against compliance issues during audits.

Revise Job Posting Processes

Job postings must include all required compensation details. This applies to both public advertisements and internal notices. Make sure each posting includes:

• Defined wage ranges: Clearly state the lowest and highest pay for the role.

• Benefit summaries: Highlight offerings like health insurance, retirement plans, and PTO.

• Additional compensation details: Include bonuses, commissions, or other monetary incentives.

If you're filling a position through direct outreach or referrals, share wage ranges and compensation details before discussing pay. Transparency at the outset reduces misunderstandings and protects compliance.

Maintain Thorough Employment Records

Accurate records are mandatory under Maryland's laws. Employers must retain documentation for a minimum of three years. Keep the following organized and accessible:

• Copies of all job postings, both internal and external.

• Records of wage range calculations and supporting data.

• Documentation of pay disclosures shared during interviews or promotions.

A structured filing system minimizes risk during audits and ensures quick access to records when needed.

Train HR Teams and Leadership

Equip managers and HR professionals with the knowledge to handle pay transparency obligations confidently. Training should cover:

• Legal requirements for job postings and pay disclosures.

• Appropriate protocols for discussing compensation with candidates and employees.

• Protections against retaliation for wage inquiries or complaints.

Well-informed teams reduce the risk of errors and help maintain consistent practices across all levels of the organization.

Conduct Internal Pay Audits

Although not required, an internal pay audit can be a proactive way to identify and address pay disparities. Focus on:

• Reviewing pay data for inconsistencies across similar roles.

• Comparing salaries by factors like job responsibility, experience, and qualifications.

• Adjusting any inequities uncovered during the audit.

Documenting these efforts demonstrates good faith compliance and supports equitable pay practices.

Automate Compliance with HR Systems

Leverage HR platforms to simplify compliance-related tasks. Use systems that can:

• Automatically embed wage ranges and benefit summaries into job postings.

• Archive job advertisements and pay-related data securely.

• Generate reports to identify trends and gaps in pay equity.

A streamlined approach saves time, reduces administrative errors, and keeps your processes aligned with Maryland's pay transparency requirements.

Frequently Asked Questions (Optional Section)

Understanding Maryland pay transparency and equity state laws can feel complex, but breaking it down into straightforward answers makes compliance and clarity manageable. Below are the most common questions answered directly, with no fluff.

1. Does Maryland have salary transparency laws?

Yes. Maryland law requires employers to include wage ranges and a general description of benefits in all job postings for positions performed at least partially within the state. This applies to both internal and external postings, covering roles tied to Maryland, even if remote.

2. What is the pay equity law in Maryland?

The Equal Pay for Equal Work law addresses pay discrimination by ensuring equal pay for employees performing substantially similar work, regardless of gender or other protected statuses. Wage transparency regulations enhance this law by requiring employers to disclose salary ranges upfront, promoting fairness during hiring and reducing hidden pay inequities.

3. What states require pay transparency laws?

States like California, Colorado, and Washington have implemented laws requiring employers to share salary ranges in job postings. Maryland follows this trend, adding its unique requirements to the growing list of state-level pay transparency mandates. Employers hiring nationwide must stay informed about each state's specific rules to remain compliant.

4. What is the new pay stub law in Maryland?

Maryland's updated wage transparency regulations complement existing requirements for accurate pay stubs. Employers must clearly outline hourly or salary rates, total hours worked, and all deductions on employee pay stubs. While separate from job posting rules, clear pay documentation supports transparency throughout the employment process.

Navigating Maryland's pay transparency and equity laws can be complex, but with the right strategies and tools, you can create a more equitable workplace while maintaining compliance. We're here to support you every step of the way, from understanding legal requirements to implementing best practices that promote fairness and trust. Book a demo with us today to learn how our platform can help you streamline compliance and build a stronger, more transparent organization.