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Maryland Amends Pay Statement and New Hire Pay Rate Notice Requirements

Effective October 1, 2024, Maryland will implement significant amendments to its pay statement and new hire pay rate notice requirements under House Bill 385 (MD H.B. 385). These changes aim to enhance transparency and ensure that employees are fully informed about their compensation. Employers need to understand these new requirements, their implications, and the necessary steps to ensure compliance.  

Key provisions of MD H.B. 385 include requiring more detailed pay statements to employees for each pay period which must include the following: 

  • The employer’s name registered with the state, address, and telephone number; 
  • The beginning and ending dates of the pay period for which, the payment is made; 
  • The number of hours worked during the pay period (unless the employee is exempt from overtime); 
  • The rates of pay; 
  • The gross and net pay earned during the pay period; 
  • The amount and a description explaining the reason for all deductions; 
  • A list of additional bases of pay, including bonuses, commissions, or other bases; and 
  • For each employee paid at a piece rate, the applicable piece rates of pay and the number of pieces completed at each piece rate. 

Employers must also provide notice of at least one pay period in advance of any change in a payday or wage (except for wage increases only). 

The labor commissioner is required to create and make available to employers at no charge a pay stub template that may be used to comply with these requirements. Employers are permitted to deliver pay statements and new hire notices electronically, provided that employees can easily access and print these documents. 

In addition to the pay statement requirements, employers are required to provide new hires with written notice of the rate and basis of pay, regular paydays, and leave benefits entitlements. 

Next Steps 

Employers must take proactive steps to update their payroll systems to ensure they can generate detailed pay statements that include all required information; develop a compliant standardized template for new hire pay rate notices that all required details; train payroll and human resources staff; and maintain accurate records to comply with the new law and Maryland’s wage and hour record retention requirements. 

HR Works, headquartered in Upstate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States for over thirty years. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.