On October 1, 2024, Maryland’s Pay Transparency Law takes effect. The law broadly applies to essentially all employers “physically perform[ing]” work in some capacity in the state of Maryland regardless of their size.
The law is an attempt to expand the state’s Equal Pay for Equal Work Act, which prohibits discriminating against employees based on their gender or sex identity, usually almost without exception when women are paid less for doing the same job as their male counterparts.
Importantly, applicants for positions can “before a discussion of compensation is held” or “at any other time” request to know all the compensation for the positions for which they are applying, including the applicable low-to-high range of wages and benefits. The law specifically prohibits employers from retaliating in any way against applicants and current employees, who request such information, including by “refus[ing] to interview, hire, or employ an applicant for employment” or refusing to “promote or transfer” a current employee. Failure to follow these specific requirements of the Act during the applicable three-year period can result in a repeat offender-employer being fined up to $600 for each employee or applicant “for whom the employer is not in compliance[.]”
The law also contains certain recordkeeping requirements for employers for a three-year period after a position is filled or, if the position was not filled, from the date of the posting of the position. This recordkeeping includes keeping the wages of employees and job classifications and producing them to the Maryland Department of Labor’s Division of Labor and Industry upon request.
Notably, there is no private right action, meaning employees and applicants cannot file a lawsuit to exercise their rights under the law. Therefore, employees and applicants are reliant upon the already overburdened Maryland Department of Labor’s Division of Labor and Industry to fine employers and force compliance. Consequently, it remains to be seen whether the new law will put a dent in any Maryland employers’ sexist pay practices.
