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
- 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. Employers covered by the Maryland Healthy Working Families Act or the Montgomery County Earned Sick and Safe Leave Law 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. Pay rate notices are required to be provided to employees when they are hired and when a change in pay or payday is made. 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. Different conditions apply under the Maryland Healthy Working Families Act and the Montgomery County Earned Sick and Safe Leave Law. 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.