Payment of Wages: Maryland
Federal law and guidance on this subject should be reviewed together with this section.
Author: Vicki M. Lambert, The Payroll Advisor
- The term wages is broadly defined in the Maryland wage payment law. See Definition of Wages.
- 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.
- The Maryland Office of Financial Regulation (OFR) has provided guidance on Earned Wage Access (EWA) products. The guidance includes the OFR's view of EWA products and a description of the requirements entities offering these products must adhere to. The guidance may be helpful to employers that are considering offering EWA to their employees. See Earned Wage Access Guidance.
- Maryland law prohibits wage deductions except in a few narrowly defined circumstances. Penalties are imposed for violations. Employers covered by the MarylandSaves Small Business Retirement Savings Program are required to facilitate optional employee contributions, through payroll deductions, to individual retirement accounts run by the state. See Permitted and Prohibited Wage Deductions.
- With each wage payment, Maryland employers are required to provide employees with a statement of earnings and deductions. Maryland restaurant employers must provide a tip credit wage statement each pay period to each employee for whom they claim a minimum wage tip credit. Employers covered by the Maryland Healthy Working Families Act must provide employees with a written statement regarding the amount of available sick and safe leave they have available. Maryland law prohibits employers from including employees' Social Security numbers on any wage-related documents. Penalties are imposed for violations. See Pay Statement Requirements.
- A notice of pay rate, paydays and leave benefits entitlement must be provided to employees when they are hired. A notice must also be provided before any reduction in pay rate and/or any change in payday is made. See Employee Notification 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. Different conditions apply under the Maryland Healthy Working Families Act. Penalties are imposed for violations. See Final Pay.
- Maryland's general estates law may apply to an employer who owes wages or other property to a deceased employee. See Deceased Employee Wages.
- 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.
- Montgomery County has requirements pertaining to the payment of wages. See Local Requirements.