Effective October 1, 2024, Maryland will become the sixth state (and the District of Columbia) to require employers to proactively disclose the wage or salary range for open positions in job postings. The new law follows a recently proposed rule that would also require federal contractors to disclose salary information in job postings. This proliferation of pay transparency requirements demonstrates the need for employers to continue to focus on achieving pay equity across the workforce.
Maryland law applies to all employers in the state, regardless of size, and applies to any job that is performed, at least in part, physically in Maryland. As with transparency laws enacted by other states, this leaves uncertainty about the law’s application to completely remote positions that could conceivably be exercised from anywhere.
Under the new law, an employer’s job postings, whether posted directly or through a third party such as a recruitment agency, must include the wage and salary range and information provided for the position. You are required to include a general description of your benefits. Wages or salary ranges must be established in good faith with reference to:
(1) Applicable salary structure.
(2) Predetermined minimum and maximum hourly wages or minimum and maximum salaries for the position.
(3) Minimum and maximum hourly wages or minimum and maximum salaries for individuals in comparable positions at the time of posting.or
(4) Budget amount for the position. This law also applies to internal posts for promotion and transfer.
If this information is not included in the job posting, it must be provided to applicants before compensation discussions occur or sooner upon applicant’s request.
In particular, the factors that need to be referenced when setting pay ranges can potentially be inconsistent. For example, an employer may have a budget for hiring $100,000 even though a comparable employee’s annual salary ranges from her $80,000 to her $120,000. The law does not provide guidance on how employers should deal with such discrepancies.
In addition to job posting requirements, the law establishes anti-retaliation and record-keeping obligations for employers.
Fines for violations of the new law range from $300 to $600 and only apply for second and subsequent violations, as the law states that employers will receive a compliance warning for the first violation. This law is enforced only by the Maryland Department of Labor and does not include a private right of action.
Employers whose jobs are at least partially available in Maryland should review their pay equity and transparency practices in light of this new law.
