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Payment upon Separation from Employment
Employees who are fired, discharged, terminated, or laid off
When an employer discharges or lays off an employee, the employer must pay the
employee all wages due by the payday on which the employee would have been paid the
wages if the employment had not been terminated. Maryland Wage Payment Law 3-505
Employees who quit or resign
When an employee quits, the employer must pay them employee all wages due by the
payday on which the employee would have been paid the wages if the employment had not
been terminated. Maryland Wage Payment Law 3-505
Employees who are suspended or resigns due to a labor dispute (strike)
When an employee resigns due to a labor dispute, the employer must pay the employee all
wages due by the payday on which the employee would have been paid the wages if the
employment had not been terminated. Maryland Wage Payment Law 3-505
Wages in Dispute
Maryland does not have any laws requiring an employer to pay an employee wages
conceded to be due when involved in a wage dispute with the employee.
Frequency of Wage Payments
An employer must pay employees at least twice per month on reqularly scheduled
paydays. An employer may pay administrative, executive and professional employees less
frequently than twice per month. If the regular payday falls on a non-work day, the employer
must pay employees on the preceding work day. Maryland Wage Payment Law 3-502
Manner of Payment
An employer may pay wages by
- cash,
- check payable on demand at face value without deduction,
- direct deposit, if consented to by the employee, into an account of the employees
choosing, or
- by credit to a debit card or card account from which the employee is able to access the
funds through withdrawal, purchase, or transfer, but only if authorized by the employee and
any fees applicable to the debit card or card account are disclosed to the employee in
writing in at least 12 point font.
Maryland Wage Payment Law 3-502
Direct Deposit
An employer may pay employee by direct deposit so long as the employee has consented
to payment of wages by direct deposit and the employee is permitted to choose the
financial institution with which the deposit is made. Maryland Wage Payment Law 3-502
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Your Employment and Labor Law Resource
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Deductions from Wages
An employer may not deduct the following from an employee's wages, unless the
employee has given separate and distinct written consent (the written consent must only
address the particular deduction to be made and nothing more):
- cash shortages,
- inventory shortages,
- dishonored checks,
- dishonored credit cards,
- damages to the employer's property in any form or
- any merchandise purchased by a customer.
An employer may not make a deduction or withdrawal from the wages of an employee
unless the deduction is:
- ordered by a court of competent jurisdiction;
- authorized expressly in writing by the employee;
- allowed by the Maryland Department of Labor because the employee has received full
consideration for the deduction; or
- otherwise made in accordance with any law or any rule or regulation issued by a
governmental unit.
Maryland Wage Payment Law 3-503; Division of Labor and Industry FAQ: Deductions
Uniforms, Tools, and Other Equipment Necessary for Employment
An employer may require an employee to buy a required uniform or required tools, but they
cannot deduct the cost of the items from the employees pay check without the written
consent of the employee. Division of Labor and Industry FAQ: Uniforms
Medical or Physical Exams, including Drug Tests, Required for Employment
Maryland does not have any laws prohibiting an employer from requiring an applicant or
employee to pay the cost of a medical examination or the cost of furnishing any records
required by the employer as a condition of employment. An employer should pay the cost
of any drug test required. Division of Labor and Industry FAQ: Drug Tests
Statement of Wages (Pay Stub)
For each pay period, an employer must provide employees with a statement of the gross
earnings of the employee and deductions from those gross earnings. Maryland Wage
Payment Law 3-504
Record Keeping Requirements
An employer must keep, for at least 3 years, in or about the place of employment, a record
of:
- the name, address, and occupation of each employee;
- the rate of pay of each employee;
- the amount that is paid each pay period to each employee; and
- the hours that each employee works each day and workweek.
Maryland Wage Payment Law 3-424
Notice Requirements
An employer must give to each employee at the time of hiring, notice of:
- the rate of pay of the employee;
- the regular paydays set by the employer; and
- leave benefits.
Maryland Wage Payment Law 3-504
Wage Payment Laws for Private Sector Employers
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Topics Covered:
- Frequency of Wage Payments
- Manner of Payments
- Payment upon Separation from Employment
- Employees who are fired, discharged, or terminated
- Employees who quit or resign
- Employees who is suspended or resigns due to a labor dispute (strike)
- Employees who are laid off
- Wages in Dispute
- Cash shortages
- Damage, loss or destruction of employer property
- Dishonored or returned checks
- Uniforms
- Tools and other items necessary for employment
- Pre-hire medical, physical, or drug tests
- Notice of Wage Reduction
- Statement of Wages (Pay Stub)
- Record Keeping Requirements
- Notice Requirements