New Pay Stub Requirements Go Into Effect October 1

September 30, 2024

The Maryland Department of Labor has rolled out a new Pay Stub and Pay Statement law (S.B. 38) which goes into effect October 1, 2024, for Maryland employers. This law was enacted to ensure employees are provided with specific information regarding their pay each pay period, as well as an initial written notice (at time of hire) of rates of pay, paydays, and leave benefits.

To comply with the new law, employers must ensure that they are including the right information on pay stubs/statements to all Maryland employees, either physically or electronically, before or on their actual pay date (for every pay period).

What information must be on pay statements moving forward?

Per the Maryland Department of Labor, the pay statement must include the following:

Employer’s name (as registered with the State of Maryland), address, and telephone number;
Date of payment;
Beginning and ending dates of the pay period;
Number of hours worked during the pay period (unless the employee is exempt from federal and State overtime requirements);
All rates of pay;
Additional bases and amounts of pay, including bonuses, commissions on sales or other bases; and
Applicable piece rates of pay and the number of pieces completed at each piece rate for each employee paid at a piece rate;
Gross and net pay earned during the pay period; and the
Amount and description of each deduction made from pay

Who is considered an employee under this new MD law?

Any person who receives a W-2 from an organization or individual is considered an employee (including household employees). That means that any person that receives a paycheck for work completed for an employer in the state of Maryland, should be receiving some form of a pay stub/statement on each pay day.

The Maryland Department of Labor recognizes that most household employees are paid by personal check without the use of payroll software which could generate pay stubs/statements. Therefore, the Department of Labor has created a template that can be used to comply with the new law in lieu of payroll software. This statement would need to be completed every pay day and delivered to the employee, either physically or electronically, on or before the actual pay date.

Pay Stub and Pay Statement Law Enforcement

Although it is unclear whether enforcement measures like audits will be implemented, the Maryland Department of Labor has announced that there may be a penalty imposed of up to $500 (per employee that does not receive a compliant pay stub/statement) to the employers not in compliance.

Job Posting Transparency (S.B. 525)

Another change posed by the new Maryland wage laws requires Maryland employers to disclose wage/salary range and “general description” of benefits, and “any other compensation offered” in internal or external job postings.