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 can soon be added to 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 the 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 a letter compelling compliance from the Maryland Commissioner of Labor and Industry for a first violation, a fine of $300 for each instance of non-compliance for a second violation, and a fine of $600 for each instance of non-compliance for subsequent violations.
Verified Credentials will continue to monitor and attempt to provide updates regarding Maryland’s salary history ban as they become available. Remember, it’s never a bad idea to discuss these upcoming changes with your legal counsel to ensure your hiring complies with applicable law.