Maryland Releases FAQs in Relation to Wage Range Transparency Act

Quick Hits

• The Maryland Department of Labor released FAQs regarding the state’s Wage Range Transparency Act, which took effect on October 1, 2024.
• The law applies to remote jobs for companies headquartered elsewhere if the employer seeks workers based in Maryland.
• Employers that do not handle their own job postings are still required to comply with the law.

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

Concerning which jobs the act applies to, 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, a conference, or speaking with employees based in Maryland.

The act requires internal and external job postings to have:

1. “The pay range, including the minimum and maximum wage;
2. [A] general description of the benefits; and
3. Any other compensation elements offered for the position.”

The FAQs make clear that a certain pay range is required for a single position and a single location. For instance, if there are multiple locations or opportunities at different levels of seniority, according to the Maryland DOL, 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 (not an exhaustive list) must be included in any posting:

(a) employer-provided health or life insurance, as well as any other employer-provided insurance;

(b) “[p]aid or unpaid time off work such as paid sick or vacation days, or leaves of absence”;

(c) “[r]etirement or savings funds such as 401(k) plans or employer-funded pension plans”; and

(d) “[o]ther 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 may offer and list them on the posting.

The last category—other compensation—is now more defined. Indeed, 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 includes the following (again, a nonexhaustive list):

• “Overtime,
• Compensatory time,
• Differentials,
• Premium pay,
• Tips,
• Commissions,
• Bonuses,
• Stock or stock options, and
• 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 flyers, 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. If an applicant applies before a position is posted, the employer must disclose the posting before having discussions regarding compensation with the applicant when the applicant requests the posting.

The Commissioner of Labor and Industry also provides compensation disclosure templates and examples of other narratives to ensure compliance. However, employers are not required to use these standard forms.

Ogletree Deakins’ Washington, D.C., office will continue monitoring developments and publish updates on the Maryland, Pay Equity, and Wage and Hour blogs as additional information becomes available.

Additionally, the Ogletree Deakins Client Portal provides subscribers with timely updates on pay equity and hiring laws, including pay transparency requirements and salary history restrictions. Our Pay Transparency/Job Posting and Salary History Bans subtopics contain updated summaries of state and significant locality laws, including those in Maryland and D.C. (Full law summaries are available for Premium-level subscribers; Snapshots and Updates are available for all registered client-users.) For more information on the Client Portal or a Client Portal subscription, please reach out to clientportal@ogletree.com.