State Law > Maryland > Maryland Wage Payment Law

Maryland Wage Payment Law

 

Maryland law concerning wage payment is located in the sections below of the Code of Maryland.

Maryland Wage Payment and Collection Law

Union dues
  • 4-401. Union dues; Employee benefits; Penalty for violations.

Maryland Wage Payment and Collection Law
3-501. Definitions.

(a) In general. In this subtitle the following words have the meanings indicated.

(b) Employer. "Employer" includes any person who employs an individual in the State or a successor of the person.

(c) Wage.

(1) "Wage" means all compensation that is due to an employee for employment.

(2) "Wage" includes:

(i) a bonus;

(ii) a commission;

(iii) a fringe benefit; or

(iv) any other remuneration promised for service.

3-502. Regular Pay Periods; Exceptions; No Social Security Number.

(a) (1) Each employer:
(i) shall set regular pay periods; and
(ii) except as provided in paragraph (2) of this subsection, shall pay each employee at least once in every 2 weeks or twice in each month.
(2) An employer may pay an administrative, executive, or professional employee less frequently than required under paragraph (1)(ii) of this subsection.
(b) If the regular payday of an employee is a nonworkday, an employer shall pay the employee on the preceding workday.
(c) Each employer shall pay a wage:
(1) in United States currency; or
(2) by a check that, on demand, is convertible at face value into United States currency.
(d) (1) In this subsection, “employer” includes a governmental unit.
(2) Social Security number on the employee’s wage payment check, an attachment to an employee’s wage payment check, a notice of direct deposit of an employee’s wage, or a notice of credit of an employee’s wage to a debit card or card account.
(e) This section does not prohibit the:
(1) direct deposit of the wage of an employee into a personal bank account of the employee in accordance with an authorization of the employee; or
(2) credit of the wage of an employee to a debit card or card account from which the employee is able to access the funds through withdrawal, purchase, or transfer if:
(i) authorized by the employee; and
(ii) any fees applicable to the debit card or card account are disclosed to the employee in writing in at least 12 point font.
(f) an agreement to work for less than the wage required under this subtitle is void.  (Effective 10/1/2011)

3-503. Deductions. An employer may not make a deduction from the wage of an employee unless the deduction is:

(1) ordered by a court of competent jurisdiction;

(2) authorized expressly in writing by the employee;

(3) allowed by the Commissioner because the employee has received full consideration for the deduction; or

(4) otherwise made in accordance with any law or any rule or regulation issued by a governmental unit.

3-504. Employer notice requirements; Statement of earnings and wage deductions; Notice of changes in paydays or wages.

(a) An employer shall give to each employee:
(1) at the time of hiring, notice of:
(i) the rate of pay of the employee;
(ii) the regular paydays that the employer sets; and
(iii) leave benefits;
(2) for each pay period, a statement of the gross earnings of the employee and deductions from those gross earnings; and
(3) at least 1 pay period in advance, notice of any change in a payday or wage.
(b) This section does not prohibit an employer from increasing a wage without advance notice.

3-505. Wage payment; Payment of wages following termination of employment.

(a) Except as provided in subsection (b) of this section, each employer shall pay an employee or the authorized representative of an employee all wages due for work that the employee performed before the termination of employment, on or before the day on which the employee would have been paid the wages if the employment had not been terminated.
(b) An employer is not required to pay accrued leave to an employee if:
(1) The employer has a written policy that limits the compensation of accrued leave to employees;
(2) The employer notified the employee of the employer's leave benefits in accordance with section 3-504(a)(1) of this subtitle; and
(3) The employee is not entitled to payment for accrued leave at termination under the terms of the employer's written policy.

3-507. Enforcement.

(a) In general. Whenever the Commissioner determines that this subtitle has been violated, the Commissioner:

(1) may try to resolve any issue involved in the violation informally by mediation;

(2) with the written consent of the employee, may ask the Attorney General to bring an action in accordance with this section on behalf of the employee; and

(3) may bring an action on behalf of an employee in the county where the violation allegedly occurred.

(b) Award.

(1) If, in an action under subsection (a) of this section, a court finds that an employer withheld the wage of an employee in violation of this subtitle and not as a result of a bona fide dispute, the court may award the employee an amount not exceeding 3 times the wage.

(2) If wages of an employee are recovered under this section. they shall be paid to the employee without cost to the employee.

3-508. Prohibited acts; penalties.

(a) Prohibited acts of employer. An employer may not willfully violate this subtitle.

(b) Prohibited acts of employee. An employee may not knowingly make to a governmental unit or official of a governmental unit a false statement with respect to any investigation or proceeding under this subtitle, with the intent that the governmental unit or official consider or otherwise act in connection with the statement.

(c) Penalties.

(1) An employer who violates subsection (a) of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000.

(2) An employee who violates subsection (b) of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $500.

Union dues

4-401. Union dues; Employee benefits; Penalty for violations.

(a) Union dues. Each employer who, under a collective bargaining agreement, deducts dues from an employee's pay for payment to a union shall make the payment within 30 days after it is required.

(b) Benefits. Each employer or union official who, under a collective bargaining or other agreement with an employee, agrees to make a payment into a health or welfare fund, a pension fund, a vacation plan, or any other similar fund or plan for employees shall make the payment within 30 days after it is required.

(c) Penalty.

(1) An employer or union official who knowingly fails to make a payment under subsection (a) or (b) of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding 1 year or both.

(2) If the employer is a corporation, each corporate officer who exercises executive functions is guilty of a misdemeanor.

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