On April 25, 2024, Maryland's Governor Wes Moore signed into law The Wage Pay Transparency Act ("Act") which takes effect on October 1, 2024. The Act requires Maryland employers to provide written notice to employees at the time of hiring that includes the rate of pay, the regular paydays (i.e. the date the employee gets paid) and leave benefits.
The Act also requires employers to include specific information on the paystub or the online pay statement of each employee.
Paystub Requirements:
- The employer's registered name, address and telephone number
- The date of payment and the start and end dates of the pay period
- The number of hours worked during the pay period (for non-exempt employees)
- The pay rate
- The gross and net pay earned during the pay period
- A list of additional bases of pay, such as bonuses, sales commissions or other forms of compensation
- For piece-rate employees, the applicable piece rates of pay and the number of pieces completed at each rate.
The Maryland Department of Labor has announced that it will create a paystub template for employers to comply with the Act's new requirements.
Enforcement:
The Act will be enforced by the Maryland Labor Commissioner which will have discretion to impose penalties and fines. There is no private right of action for employees under the Act to sue an employer for violating the Act. However, employees may file a complaint with the Maryland Labor Commissioner for any alleged violation of the Act.
If an employer fails to comply with the Act's requirements, the Maryland Labor Commissioner can issue an order to compel the employer to provide the required information and can impose an administrative penalty of up to $500 per employee who did not receive the required notice or information. Employers can appeal an order issued by the commissioner by requesting an administrative hearing within 15 days after receiving the order. If an employer fails to comply with the order within 30 days after it is issued, the commissioner can sue the employer for enforcement.
Takeaway:
Employers should review and update their onboarding procedures and paystubs to include the information required by the Act, ensuring compliance by the October 1, 2024 deadline. We also recommended that employers notify and train HR and payroll staff on the new requirements.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.