Maryland to require wage range and benefit disclosures in job postings 

September 23, 2024

On April 25, 2024, Maryland’s governor signed legislation (HB 649/SB 525) that will require employers to disclose certain wage and benefits information in job postings and to employees under amendments to its Equal Pay for Equal Work Law. The revisions take effect Oct. 1, 2024, and will make Maryland the seventh state (and Washington, DC) to require pay disclosures in job postings. The Maryland Department of Labor (MDOL) has issued guidance to help employers comply with these requirements.

Disclosure. Employers shall disclose — in public or internal job postings —the wage range and a general description of benefits and any other compensation offered for the position. If the posting is not available, employers must disclose this information to the applicant before a discussion of compensation is held — or upon request. The MDOL created a form employers can use to comply. Employers are not required to use the form, and the MDOL has provided examples of narrative formats that are also compliant under the law. Maryland currently requires the pay range for a role to be disclosed upon the applicant’s request.

Posting defined. A posting is a solicitation intended to recruit applicants for a specific available position, including recruitment done directly by an employer or indirectly through a third party. According to MDOL, solicitations may include:

• 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
• Advertisements published through any other medium

This includes postings done by or on behalf of the employer, such as job recruiters or job listing websites (e.g. Indeed, LinkedIn, 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.

The MDOL has also clarified that an employer must include the required disclosures when reposting a position. The employer may change the terms of the posting, if in good faith, such as to attract more applicants to the position.

Wage range defined. A wage range is the minimum and maximum hourly rate or salary for a position, set in good faith by reference to:

• Any applicable pay scale
• Any previously determined minimum and maximum hourly rate or salary for the position
• The minimum and maximum rate or salary of an individual holding a comparable position at the time of the posting
• The budgeted amount for the position

The MDOL has clarified that a separate range of pay must be provided for each location or opportunity, if the posting involves multiple locations or multiple opportunities at different levels of seniority.

If the employer is offering a fixed rate, and not a range, the posting must include the fixed rate.

Benefits. The MDOL says the following benefits must be listed:

• Employer-provided insurance such as health, life or other
• Paid or unpaid time off 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

“Any other compensation offered.” The MDOL provides examples of “any other compensation offered,” which includes overtime, compensatory time, differentials, premium pay, tips, commissions, bonuses, stock or stock options, and any portion of service charges.

Application. The wage range is only required to be provided for a position that will be physically performed at least in part in Maryland. The MDOL says that if the job is for remote work for a company headquartered in another state, but advertises seeking workers based in Maryland, the law applies. The MDOL has provided examples of occasional work that is not covered, such as attending meetings and conferences or communicating with Maryland employees.

Nondiscrimination protections. An employer may not retaliate against or refuse to interview, hire, or employ an applicant for employment or promote or transfer an employee because the applicant or employee:

• Did not provide wage history
• Requested the wage range for the position for which the applicant applied
• Exercised any rights under this law

If an employee or applicant believes that a prospective or current employer may have retaliated against them, they can contact the Wage and Labor Standards Enforcement Unit. The antiretaliation law provides that the MDOL 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.

Recordkeeping. Employers shall keep a record of disclosure compliance for each position for at least three years after the position is filled or, if the position is not filled, the position was initially posted.

Violations. An applicant or employee who believes that an employer has failed to comply with these requirements may file a complaint with the MDOL.

Penalties. For first violations, the MDOL will issue an order compelling compliance and may impose a civil penalty of up to $300 for each employee or applicant for second violations, and $600 for each employee or applicant for subsequent violations.

Maryland’s pay transparency requirements are not effective until Oct. 1, 2024, but several states have enacted legislation requiring the disclosure of salary ranges and pay data in recent years. For example, in New York an employer, employment agency, employee or agent thereof must include compensation or the compensation range when advertising a job, promotion or transfer opportunity that will physically (at least in part) be performed in New York. California, Connecticut, Hawaii, Illinois, Nevada, Rhode Island, Washington and Washington, DC also require employers to disclose — voluntarily or upon request — information about salary ranges for open positions or promotions. Other states, such as Massachusetts, are considering similar legislation.

In addition to states requiring disclosure of pay ranges, states such as Colorado are focused on increasing the visibility of job opportunities to employees and candidates. In addition to including pay information on postings, they want to ensure potential candidates are aware of such postings.

For more information, please refer to the Roundup: US employer resources on states’ recent equal pay laws.

Assess readiness: review the compensation foundation for the following

• Are jobs clearly defined?
• Is pay aligned to pay philosophy and market?
• Has the organization’s pay equity been analyzed?
• Are managers equipped to communicate pay ranges? 

Set your destination: address key questions around where you’re headed

• What will be shared (e.g., what elements of pay and total rewards)?
• Who will it be shared with — all employees, managers only, certain segments?
• How will it be shared?

Plan for the journey: address gaps and risks in your current environment

• Job structures
• Gaps in pay equity and competitiveness
• Talent acquisition and employee communication technology
• Manager education and resources

Share the story: address gaps and risks in the current environment

• Job structures
• Gaps in pay equity and competitiveness
• Talent acquisition and employee communication technology
• Manager education and resources

Measure the impact: assess success through data and insights

• Applicants per opening, time to fill, offer acceptance rates
• Candidate surveys
• Employee engagement and perceptions
• Statistical modeling around turnover and other outcomes

• SB 525 (Legislature) 
• Equal work for equal pay — Wage range transparency frequently asked questions — Employment Standards Service (MDOL)

• Roundup: US employer resources on states’ recent equal pay laws (regularly updated)
• Colorado amends equal pay requirements (Dec. 13, 2023)
• Illinois to require pay scale and benefits disclosure in job postings (Aug. 28, 2023)
• Hawaii to require pay disclosure in job listings, expands equal pay law (July 18, 2023)
• New York to require salary ranges in job postings (March 9, 2023) 
• California to impose more salary disclosure, pay data reporting (Oct. 3, 2022)
• Salary information will be required in New York City job postings (May 4, 2022)
• Washington regulator clarifies new pay disclosure requirements (Dec. 19, 2019)