As we enter October 2024, both Maryland employers and employees should prepare for notable updates to the state’s employment laws. These changes will affect various aspects of workplace policies, including family leave programs, non-compete agreements, and pay transparency requirements. Below, we outline the most critical updates to help Maryland businesses stay compliant and workers understand their rights.
1. Family and Medical Leave Insurance (FAMLI) Program Updates
One of the most significant updates this October is the Family and Medical Leave Insurance (FAMLI) Program, which provides paid leave benefits to Maryland workers. This state-administered insurance program is funded by contributions from both employees and employers. However, not all businesses are required to contribute. If your company has 15 or more employees, contributions are mandatory. Smaller businesses are currently exempt from this requirement.
Key Updates:
- Remote Work Eligibility: The new regulations clarify that employees must have worked at least 680 hours in the past 12 months, with these hours specifically worked in Maryland to qualify for FAMLI benefits.
- Contribution Rates: Although contributions to the FAMLI program won’t start until July 2025, the Maryland Secretary of Labor will announce the contribution rates by February 2025.
2. Restrictions on Non-Compete Agreements for Healthcare Workers
Starting July 2025, non-compete agreements for Maryland healthcare workers will face new restrictions. These changes prohibit non-compete clauses for healthcare professionals earning less than $350,000 annually. This restriction also extends to veterinary professionals, who became subject to this law in June 2024. Non-compete agreements in healthcare fields can no longer last longer than one year and cannot prevent workers from being employed within 10 miles of their prior work location.
3. Pay Transparency Requirements
In a major move toward pay transparency, Maryland passed SB0525, which requires employers to disclose salary ranges and benefits in job postings. This law aims to promote fairness and transparency in compensation across industries.
Key Points:
- Employers must provide salary ranges and benefits information upon request and are prohibited from retaliating against employees who refuse to disclose past wages.
- This law applies to any job that includes in-person work in Maryland. Employers are also required to maintain records to prove compliance for at least three years.
4. Employee Rights: Written Notice of Pay
Beginning in October 2024, employers in Maryland must provide employees with written notices detailing their pay rate, regular paydays, and available leave benefits. This information must also appear on pay stubs, regardless of whether they are in physical or digital form.
Failure to comply with these requirements could lead to penalties, so businesses should take steps now to ensure that their payroll systems are updated to provide this information to employees.
5. Expanded Anti-Discrimination Laws
Maryland’s anti-discrimination protections are expanding. Military status is now a protected category, safeguarding current and former military members, reservists, and their dependents from workplace discrimination. Additionally, the state’s Equal Pay for Equal Work law now explicitly prohibits wage discrimination based on sexual orientation, broadening existing protections for gender and sex.
What This Means for Employers and Employees
With these sweeping changes, Maryland employers must take action to stay compliant, while employees should familiarize themselves with their updated rights. The focus on transparency, employee protections, and non-compete restrictions signals a shift toward more equitable workplace practices across the state.
As these laws come into effect, it’s critical for employers to review their current policies and ensure alignment with the new regulations. For employees, understanding these updates is equally important to ensure your rights are upheld in the workplace.
For more detailed guidance on how these laws may affect your business or employment situation, don’t hesitate to reach out to legal professionals or visit our Employment Law Resource Center.