October 1, 2019

Equal Pay Penalties

Employers in Maryland are expected to provide employees with equal pay when they do equal work under equal circumstances. The state implemented House Bill 790 (HB790) to create penalties for employers who violate this law or take action against an employee who files a complaint related to this law.

Employers who are found to violate this law two or more times during a three-year period may be required to pay a civil penalty equal to 10% of the damages owed.

Enforcement of HB790 goes into effect on October 1, 2019.

Ban The Box

Maryland law SB0004 prohibits state employers from asking about arrests or criminal convictions on job application. They may inquire about criminal records after an interview is conducted or a conditional offer is extended.

Employers Cannot Consider Obsolete Information

Statue §14-1203 prohibits employers from reviewing data that is considered obsolete when considering hiring applicants. This includes:

  • Bankruptcies that are more than ten years old.
  • Arrests or convictions that are more than seven years old.
  • Paid tax liens that are more than seven years old.
  • Other adverse information that is more than seven years old.

Job Applicant Fairness Act – Credit Reports

Employers cannot use credit reports when making hiring decisions unless:

  • The employer is required to run credit reports by state or federal law or they are a financial institution (or affiliate) that accepts deposits that are insured by a federal agency.
  • There is a legitimate business job-related need.

Before running a credit report, the employer must extend a conditional offer and receive the person’s authorization. The report may not be used to deny employment to an applicant or terminate an existing employee.

Backgrounds Online provides details about State Laws for informational purposes only. We do not provide legal services. Nothing on these pages or our site should be considered as legal advice or opinion.