Maryland soon will join five other states and the Washington, DC, in requiring employers to disclose salary or wage ranges upfront in job listings. Maryland’s requirement goes into effect Oct. 1.
The states of California, Colorado, Hawaii, New York and Washington have similar laws in place, with the requirement expected to go into effect in the nation’s capital, on June 30.
“These proliferating pay transparency requirements demonstrate the need for employers to continue focusing on achieving pay equity throughout the workforce,” according to Polsinelli attorneys Jack Blum and Caitlyn Stollings.
The Maryland Wage Transparency Law will apply to all employers within the state, regardless of size. Additionally, the requirement will apply to any position that will be physically performed, at least in part, in the Old Line State.
“It remains to be seen how ‘in part’ will be defined, given the prevalence of remote and hybrid work. The Maryland Department of Labor is expected to issue guidance that may help clarify the new law,” the National Law Review reported.
After a first violation, the employer will receive a warning. Fines for noncompliance range then will range from $300 for the second violation to $600 for subsequent violations.
“If a job posting was not made available to an applicant for the position, the employer must disclose to the applicant the required information before holding compensation discussions with the applicant and at any other time upon the applicant’s request,” according to the National Law Review.
In addition to imposing penalties for violations, the new law includes anti-retaliation measures and recordkeeping obligations for employers.
“The proposed clause applies to recruitment for any position that works ‘on or in connection with’ a federal contract — an established standard covering not just the employees who perform the direct services called for under the contract, but also support services that are necessary for the contract’s performance,” according to Polsinelli. “The proposed clause would also impose compensation disclosure requirements for contractors’ job advertisements. The clause requires that all advertisements for positions that work on or in connection with a federal contract must disclose the range of salary or wages the contractor believes in good faith that it will pay for the position.”
Maryland’s new law follows a federal proposal to amend the Federal Acquisition Regulation to implement a new pay equity clause for federal jobs. The FAR Council includes the administrator for federal procurement policy and the heads of the Defense Department, NASA and the General Services Administration.
Source: McKnights Seniorliving