Maryland Releases FAQs on Wage Range Transparency Act

The Maryland Department of Labor recently released key questions and answers regarding the state’s Wage Range Transparency Act, which took effect on Oct. 1, amending the prior Equal Pay for Equal Work laws found in Sections 3-301, 3-304.2, 3-305, and 3-308(e) of the Maryland Labor and Employment Article. 

Here are some of the key points concerning the act for businesses in Maryland, as provided in the agency’s frequently asked questions (FAQs).

The act applies to jobs “that will be physically performed, at least in part in the State of Maryland.” The FAQs have now clarified that this applies to remote jobs for companies headquartered elsewhere if the employer seeks workers based in Maryland. The act, however, does not apply to jobs that only occasionally require work in Maryland, such as attending a meeting or a conference or speaking with employees based in Maryland.

The act requires internal and external job postings to have:

• The pay range, including the minimum and maximum wage.
• A general description of the benefits.
• Any other compensation elements offered for the position.

The FAQs clarify that a pay range is required for every position and location. For instance, if there are multiple locations or opportunities at different levels of seniority, according to the Maryland Department of Labor, employers must have a separate range of pay for each location or opportunity. Further, for positions that do not have a range, the employer must list the hourly or fixed rate and cannot use, for example, “$30+ an hour.”

The following benefits must be included in any posting:

• Employer-provided health or life insurance, as well as any 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.
• Other forms of compensation such as the value of employer-provided meals or lodging.

Given that the list is nonexhaustive, employers may want to determine what other similar benefits of employment they offer and list them on the posting.

The last category—other compensation—is now more defined. The FAQs indicate that it “is intended to broadly cover ‘any’ other earnings or monetary compensation that an employee may receive as payment in return for work performed.” This nonexhaustive list includes the following:

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

Further, employers that do not handle their own job postings are still required to comply with the law. The act covers all types of job postings, including newspaper ads, displayed or distributed printed fliers, social media posts, emails to multiple recipients, and advertisements through any medium. It applies to “postings done by or on behalf of the employer, including job recruiters or job listing websites.”

Additionally, the same disclosure requirements apply when reposting a position. The employer can adjust the wage ranges when reposting, as long as it does so with a good-faith belief that the wage range is accurate. 

The Maryland Division of Labor and Industry also provides compensation disclosure templates and examples of other narratives to ensure compliance. Employers are not required to use these standard forms.

D’Ontae D. Sylvertooth and Matthew W. Brown are attorneys with Ogletree Deakins in Washington, D.C. © 2024 Ogletree Deakins. All rights reserved. Reposted with permission.