Recently, Maryland, Vermont, and Massachusetts joined the growing number of states that require covered employers to disclose the compensation or compensation range on job postings. This article reviews the Maryland and Vermont requirements. We cover the Massachusetts requirements in a separate blog.
Maryland
On April 25, 2024, Maryland Governor Wes Moore signed a new pay transparency requirement into law. The “Equal Pay for Equal Work- Wage Range Transparency” law requires covered employers to include the wage range and a general description of benefits on job postings. The law goes into effect on October 1, 2024.
Covered Employers
Employers that engage in “a business, industry, profession, trade, or other enterprise” in Maryland are subject to the disclosure requirement. Unlike other states’ pay transparency requirements, the Maryland law does not limit its application to employers that have a minimum number of employees.
Required Disclosures
Covered employers must disclose the wage range, a general description of benefits, and any other compensation offered for the position. The wage range is defined as “the minimum and maximum hourly rate or minimum and maximum salary for a position, set in good faith by reference to” any applicable pay scale, any previously determined range for the position or a comparable position, or the budgeted amount for the position.
The disclosure must be made on all public or internal job postings for positions that will be physically performed, at least in part, in Maryland. The law does not clearly address whether this applies to positions that can be remotely performed in Maryland.
If a posting for a position is not made available to an applicant, the covered employer must disclose to the applicant the same information required on a job posting before compensation is discussed and at the request of the applicant.
The Maryland Commissioner of Labor and Industry is charged with publishing a template that employers can include in job postings to comply with the law.
Recordkeeping and Penalties
Covered employers are required to keep records that show compliance with the law for at least 3 years after a position is filled, or if the position is not filled, 3 years from the posting date.
Covered employers are prohibited from retaliating against employees and applicants for exercising their rights under the law, including requesting the wage range for a position.
If the Commissioner determines that an employer has violated the law, the Commissioner, in its discretion can issue an order compelling compliance for the first violation, assess a penalty of up to $300 for each employee or applicant from whom the employer is not in compliance for the second violation, and assess a penalty of up to $600 for each employee or applicant from whom the employer is not in compliance for the third and any subsequent violation.
Vermont
On June 4, 2024, Vermont Governor Phil Scott signed into law “An Act Relating to Disclosure of Compensation in Job Advertisements.” The law requires employers with 5 or more employees to disclose the compensation on job postings. The law goes into effect on July 1, 2025.
Covered Employers
The law applies to employers that employ 5 or more employees.
Required Disclosures
The disclosures apply to jobs that are physically located in Vermont or performed remotely for an office or work location physically located in Vermont.
The disclosure applies to any advertisement, which includes any written notice, in any format, of a specific job opening available to internal or external candidates.
Disclosures are not required for:
- General announcements that notify potential applicants that employment opportunities may exist but do not identify specific job openings.
- Verbal announcements of employment opportunities made in person, on the radio, tv, or other electronic mediums.
The disclosure must include the compensation or range of compensation, which is defined as the minimum and maximum annual salary or hourly wage the employer expects in good faith to pay for the job at the time the ad is created. However, it is important to note that the law does not prevent an employer from hiring an employee for more or less of the compensation range contained in the advertisement due to circumstances outside of the employer’s control, such as the applicant’s qualification or labor market factors.
If a job is paid on a commission basis, whether whole or in part, an employer is required to disclose that fact but is not required to disclose the compensation. On the other hand, if a job is paid on a tipped basis, the ad must disclose that fact, along with the base wage or range of base wages for the job.
The Attorney General’s Office is now charged with publishing guidance for employers and employees on the new law.
Penalties
The Vermont Attorney General or a State Attorney has the power to restrain prohibited acts, seek civil penalties, and conduct civil investigations for violations of the law, including any claim by an employee or applicant of retaliation for exercising rights under the law.
Employer Action
The October 1, 2024, effective date for the Maryland requirements is quickly approaching. As such, any employer doing business in Maryland should determine how they will comply.
Though the Vermont requirements don’t go into effect until mid-2025, covered employers (or employers covered by multiple state laws) may want to consider adopting a more universal approach to job postings that complies with all state requirements for administrative ease.
Resources
- Maryland Equal Pay for Equal Work- Wage Range Transparency
- Vermont: An Act Relating to Disclosure of Compensation in Job Advertisements
Connect with a Sequoia consultant to learn how Sequoia’s compliance services are integrated in our benefits services and tailored solutions. And if you’re already a Sequoia client, stay on top of your employer obligations with your Compliance Checklist that highlights important compliance dates, action items, and resources.
The information and materials on this blog are provided for informational purposes only and are not intended to constitute legal or tax advice. Information provided in this blog may not reflect the most current legal developments and may vary by jurisdiction. The content on this blog is for general informational purposes only and does not apply to any particular facts or circumstances. The use of this blog does not in any way establish an attorney-client relationship, nor should any such relationship be implied, and the contents do not constitute legal or tax advice. If you require legal or tax advice, please consult with a licensed attorney or tax professional in your jurisdiction. The contributing authors expressly disclaim all liability to any persons or entities with respect to any action or inaction based on the contents of this blog. © 2024 Sequoia Consulting Group. All Rights Reserved.
