There has been an increase in jurisdictions adopting “salary history bans,” like the salary history bans we have discussed in New Jersey, New York, Philadelphia, Pennsylvania, and Cincinnati, Ohio. With recent legislation, the state of Maryland will soon join the list of jurisdictions with restrictions on an employer’s ability to ask about an applicant’s salary history.
Effective October 1, 2020, Maryland’s salary history ban:
- Requires an employer, at the applicant’s request, to “…provide to an applicant for employment the wage range for the position for which the applicant applied.”
- Prohibits an employer from “Retaliat[ing] against or refus[ing] to interview, hire, or employ an applicant for employment because the applicant: (1) Did not provide wage history; or (2) Requested the wage range… for the position for which the applicant applied.”
- With some exceptions, prohibits an employer from: “(1) Relying on the wage history of an applicant for employment in screening or considering the applicant for employment or in determining the wages for the applicant; or (2) Seeking the wage history of an applicant for employment orally, in writing, or through an employee or agent from a current or former employer.”
- Allows an applicant for employment to voluntarily share wage history with an employer.
- Allows an employer to, after making “an initial offer of employment with an offer of compensation to an applicant for employment”: (1) “Rely on the wage history voluntarily provided by the applicant for employment to support a wage offer higher than the initial wage offered by the employer,” as long as the “higher wage does not create an unlawful pay differential based on protected characteristics” under Maryland law; and (2) “Seek to confirm the wage history voluntarily provided by the applicant for employment to support a wage offer higher than the initial wage offered.”
An employer that violates Maryland’s new salary history ban may receive an order of compliance letter from the Maryland Commissioner of Labor and Industry for a first violation; a fine of $300 for second and each instance of non-compliance; and a fine of $600 for each subsequent non-compliance violation.
Your Part-Time HR Manager will continue to monitor and attempt to provide updates regarding Maryland’s salary history ban as they become available.
To learn how YPTHRM can keep you up to date and in compliance with upcoming changes, give us a call – 516-522-0078 or email – email@example.com. Today!
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Your Part-Time H.R. Manager provides advisory services to our clients and newsletter subscribers. None of the information contained herein should be construed as legal or financial advice, nor is Your Part-Time H.R. Manager engaged to provide legal or financial advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult your attorney, legal or financial advisor if you want assurance that our information, and your interpretation of it, is appropriate to your particular situation.