Equal Work for Equal Pay - Wage Range Transparency Frequently Asked Questions - Employment Standards Service (ESS)

1. When does the Maryland Wage Range Transparency law take effect?
The law takes effect on October 1, 2024. Review the legislation enacted. 

2. 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:

1.  The pay range, including the minimum and maximum wage;
2.  general description of the benefits; and
3. Any other compensation elements offered for the position. The requirement applies whether the employer posts the position directly or through a third party.

3. What types of job postings does the law cover?
The law applies to all solicitations, internal and external.  This includes:

•  Newspaper advertisements and printed flyers that are distributed or displayed,
• social media posts,
• Emails sent to more than one applicant, or emails sent through an electronic mailing list, or
• Advertisements published through any other medium.

This includes postings done by or on behalf of the employer, including job recruiters or job listing websites such as Indeed, LinkedIn or Monster. An employer is not responsible for job postings that are reposted, aggregated, or “scraped” by a third party website without the employer’s consent. 

4. Does the posting have to be for a job that is performed in Maryland?
The law applies to a posting for any position where work will be physically performed, at least in part, in the State of Maryland. For example, if the job is for remote work for a company headquartered in Pennsylvania, but advertises seeking workers based in Maryland, this law applies.

5. What about a posting for a job where the work will only occasionally be performed in Maryland?
If the position will only occasionally perform work, such as attendance at a meeting or conference in the State or communicating with employees based in the State, the position would not be covered.

6. What about job listings at multiple locations?
An advertised range of pay must be for a single position and a single location.  If a posting involves multiple locations or multiple opportunities at different levels of seniority, a separate range of pay must be posted for each location or opportunity.

7. What is required to be listed in the wage range for the position?
The wage range must include the minimum and maximum salary or hourly rate of compensation for the job, promotion, or transfer opportunity that the employer in good faith believes to be accurate at the time of posting. This may include reference to any applicable pay scale, any previously determined range of wages for the position, the actual range of pay for current employees holding comparable positions or the amount budgeted by the employer for the position. The wage range does not include other forms of compensation or benefits such as potential tips, employer provided insurance, paid leave including vacation time or retirement savings.

8.  What benefits are required to be listed?
The law requires that the posting include a general description of benefits and any other compensation elements offered for the position. This includes but is not limited to:

•  Employer provided insurance such as health or life or other employer-provided insurance,
•  Paid or unpaid time off work such as paid sick or vacation days, or leaves of absence,
•  Retirement or savings funds such as 401(k) plans or employer-funded pension plans, or
•  Other forms of compensation such as the value of employer-provided meals or lodging.

9. What does  “any other compensation offered” mean and is it required to be included in the posting?
In addition to the wage range and benefits, the law requires that the job posting include “any other compensation offered.” This requirement is intended to broadly cover “any” other earnings or monetary  compensation that an employee may receive as payment in return for work performed, including, by way of example only:

• Overtime,
• Compensatory time,
• Differentials,
• Premium pay,
• Tips,
• Commissions,
• Bonuses,
• Stock or stock options, and
• Any portion of service charges.

If you have a question about whether something is considered “any other compensation,” please contact the Division of Labor and Industry Wage and Labor Standards Enforcement Unit at workrights@maryland.gov or call 410-767-2357 (410-767-2370 for Spanish).

10. What if the employer does not plan to offer a range but a fixed rate?
If the employer is offering a single fixed rate, the posting must include the fixed rate.  For example, an employer could list the pay as $30 an hour. However, an employer would not be permitted to list $30+ an hour.

11. Is an employer required to provide the required disclosure when reposting a position ?
Yes. The reposting of a position is considered a separate, new “posting” that carries the required disclosure obligations in the law. However, an employer is free to vary the terms (e.g., by adjusting wages and salaries) so long as it meets the good faith requirements of Section 3-304.2(a)(2) of the law.  For example, a range of pay can be increased if the employer finds that the existing posting is not attracting applicants.

12.  What if a posting was not made available to an applicant prior to the filing of their application, what should an employer do?
An employer is required to disclose the posting for the position before any discussions of compensation with the applicant and at any other time requested by the applicant.  

13. 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. 

14. Who can file a complaint?
An applicant or employee who believes that an employer has failed to comply with the requirements of this law may file a complaint with the Commissioner of Labor and Industry.

15. How can an applicant or employee file a complaint?
A complaint should be directed to the Wage and Labor Standards Enforcement Unit at workrights@maryland.gov or the hotline at 410-767-2357 ((410-767-2370 for Spanish) (8:00 a.m. - 4:30 p.m.). The complaint should include a statement setting forth the facts and any documentation to support the complaint. 

16. What if an employee believes they have been retaliated against for requesting the salary range information required by law?
The law prohibits an employer from taking or threatening to take adverse action against an employee or applicant for exercising their rights under this law. If an employee or applicant l believes that a prospective or current  employer may have retaliated against them, they can contact the Wage and Labor Standards Enforcement Unit at workrights@maryland.gov or the hotline at 410-767-2357 ((410-767-2370 for Spanish) (8:00 a.m. - 4:30 p.m.).

The anti-retaliation law provides that the Commissioner of Labor and Industry may seek relief on behalf of the worker, including reinstatement and backpay, and assess a civil penalty of up to $1,000 for each employee for whom an employer is found to have retaliated against. 

17. 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.

18. 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.

19.  Must employers use the template form?
No.  So long as all required information is included, employers may use any format they choose.  Examples of more narrative formats are available.

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