Maryland Wage Payment Laws

Frequency of Wage Payments

An employer must set regular pay periods and pay employees other than administrative, executive and professional employees at least two (2) times per month on regularly scheduled paydays. An employer may pay administrative, executive and professional employees less frequently than two (2) times per month. If the regular payday falls on a non-work day, the employer must pay employees on the preceding workday. MD Statute, Labor and Employment 3-502

Manner of Wage Payments

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
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.

MD Statute, Labor and Employment 3-502

Direct Deposit

An employer may pay employees 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. MD Statute, Labor and Employment 3-502

Payroll Card

An employer may pay employees by payroll card, debit card or card account:

if the employee is able to access the funds through withdrawal, purchase, or transfer
if the employee has authorized the payment method, and
any fees applicable to the debit card or card account are disclosed to the employee in writing in at least 12 point font.

MD Statute, Labor and Employment 3-502

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. MD Statute, Labor and Employment 3-505

Employees who quit or resign

When an employee quits, 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. MD Statute, Labor and Employment 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. MD Statute, Labor and Employment 3-505

Wages in Dispute

Maryland does not have any laws requiring an employer to pay an employee’s wages conceded to be due when involved in a wage dispute with the employee.

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.

MD Statute, Labor and Employment 3-503; Maryland Department of Labor: 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 employee’s paycheck without the written consent of the employee. Maryland Department of Labor: Uniforms

Pre-hire Medical, Physical, or Drug Tests

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. Maryland Department of Labor: Drug Tests

Notice of Wage Reduction

An employer must give an employee at least one (1) pay period advanced notice of any change in a payday or wage. MD Statute, Labor and Employment 3-504

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. MD Statute, Labor and Employment 3-504

Record Keeping Requirements

An employer must keep, for at least three (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.

MD Statute, Labor and Employment 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.

MD Statute, Labor and Employment 3-504