Pay Stub and Pay Statement - Required Information Frequently Asked Questions - Employment Standards Service (ESS)

When do the new requirements for pay stubs and pay statements go into effect?
The Pay Stub and Pay Statement law, Chapter 305 of the laws of 2023 (SB 38) goes into effect October 1, 2024. View the enacted legislation.

What does the new law require?
Prior to the enactment of the Pay Stub and Pay Statement law, employers were required to provide notice to employees at the time of hire of certain information related to rate of pay, paydays and leave benefits, and for each pay period a statement of the gross earnings of the employee and deductions from those gross earnings.

The new law builds upon both of these requirements:

1. Notice:  Under the new law, the notice of rates of pay, paydays, and leave benefits must be in writing.

2. Pay Statements:   The new law requires that employers provide employees with a written or online pay statement each payday. The law also prescribes the information that an employer is required to provide on that pay statement. 

What information is required on the written statement or online pay statement?
The written statement or the online pay statement must include the following information:

• Employer’s name (as registered with the State of Maryland), address, and telephone number;
• Date of payment;
• Beginning and ending dates of the pay period;
• Number of hours worked during the pay period (unless the employee is exempt from federal and State overtime requirements);
• All rates of pay;
• Additional bases and amounts of pay, including bonuses, commissions on sales or other bases; and
• Applicable piece rates of pay and the number of pieces completed at each piece rate for each employee paid at a piece rate;
• Gross and net pay earned during the pay period; and the
• Amount and description of each deduction made from pay;

Is there a pay stub template that employers can use?
Yes, the Commissioner of Labor and Industry has created a pay stub template. 

Are employers required to use the template provided?
No, the use of the template is voluntary.  However, use of a properly completed template will satisfy the employer’s obligation to provide the information required by this law.

Does the Tip Credit Wage Statement Required by §3-419(d) of the Labor and Employment Article satisfy the Pay Stub and Pay Statement law?
No.  The tip credit wage statement requirements include an obligation for restaurant employers to show an employee’s effective hourly rate of pay including cash wages and tips. The Pay Stub and Pay Statement law includes additional requirements that are not required to be part of a tip credit wage statement.

Can the Tip Credit Wage Statement be included in a pay stub that meets the requirements of the law?
Yes. The elements required to be included in a tip credit wage statement may also be included in a pay stub that is compliant with the Pay Stub and Pay Statement law.

What are the penalties for not complying with this law?
The Commissioner of Labor and Industry may impose an administrative penalty of up to $500 for each employee who is not provided a pay statement, or was not provided a pay statement that complies with this law. 

Can an employee waive the written notice requirements?
No, the requirements cannot be waived.

How long should employers keep written notice at time of hire?
The Maryland Wage and Hour law provides that an employer shall keep a record of an employee’s name, address and occupation, employee’s rate of pay, amount that the employee is paid, the hours that the employee works each day and workweek for at least 3 years.

Does an employer have to give a new notice every time the wage rate changes?
Yes. The law requires that an employer provide at least one pay period advance notice of any decrease in rate of wage. The law does not prohibit an employer from increasing a wage without advance notice.

What if an employee receives different pay rates, or is paid on multiple bases?
All rates of pay or bases of pay must be reported on the pay statement.  If an employee receives multiple rates of pay, an employer is required to disclose pay stub or online pay statement of all rates of pay and all hours paid at each rate, including hours worked at straight time and any overtime hours.

Do the written notice requirements apply to workers who are subject to a collective bargaining agreement?
Yes. An employer is required to provide employees subject to a collective bargaining agreement with written notice of the requirements set forth in the law.  

Who can I contact if I have more questions or would like more information?
Contact the Wage and Labor Standards Enforcement Unit at workrights@maryland.gov or call the hotline at 410-767-2357 (410-767-2370 for Spanish) (8:00 a.m. - 4:30 p.m.).

What should an employee  do if an  employer does not provide the required information?
An employee may file a complaint with the Wage and Labor Standards Enforcement unit at  workrights@maryland.gov or call the hotline at 410-767-2357 (410-767-2370 for Spanish) (8:00 a.m. - 4:30 p.m.).