Payment of Wages: Maryland
The below content should be reviewed in conjunction with the in-depth federal coverage of this topic provided above.
Author: Vicki M. Lambert, The Payroll Advisor
- Maryland employers must pay wages in cash or by check. Direct deposit and electronic paycards are permitted, if the employer obtains the employee's permission. Penalties are imposed for violations. See Wage Payment Methods.
- Employees in Maryland must be paid at least biweekly or semimonthly. FLSA-exempt employees may be paid less frequently. Penalties are imposed for violations. See Pay Frequency.
- Maryland law prohibits wage deductions except in a few narrowly defined circumstances. Penalties are imposed for violations. See Permitted and Prohibited Wage Deductions.
- With each wage payment, employers are required to provide employees with a statement of earnings and deductions. Maryland law prohibits employers from putting the employee's Social Security Number on any wage-related document. Penalties are imposed for violations. See Pay Statement Requirements.
- Employers are required to pay terminated employees all wages on or before the next regular payday. Accrued leave time need not be paid if certain conditions are satisfied. Penalties are imposed for violations. See Termination Pay.
- Wages are considered abandoned property if they are unclaimed by an employee for three years. Maryland employers must report and remit the unclaimed amounts by October 31st of each year and notify affected employees within a certain time period. Penalties are imposed for violations. See Unclaimed Wages.