Nobody ever said running a business was a walk in the park. As an employer, you have a lot of balls in the air, and compliance is just one of them. One really, really important one that, if dropped, could cost you a whole lot of money.
In addition to federal regulations, each state has their own share of employment laws that business owners need to be aware of. Here, we’re highlighting some of these key state-specific requirements and laws, and offering guidance to help you keep up.
Bear in mind, this list is not comprehensive, and there may be local or industry-specific employment requirements that your business needs to comply with. It’s best to consult with counsel to ensure compliance with all applicable laws, as Justworks does not provide legal advice.
Payroll Tax Accounts
Because Justworks reports state unemployment taxes on behalf of customers who utilize Justworks’ PEO services, employers will need to close their Maryland unemployment and withholding accounts prior to joining the Justworks platform. Linked here are the steps you’ll need to take: Maryland - State Unemployment Insurance.
Maryland employers can find the most up-to-date minimum wage requirements from the Maryland Department of Labor.
The localities in Maryland, listed below, have a higher minimum wage than at the state level. Where both laws apply to an employee based on worksite, the law that favors the employee should be followed. Minimum wages in these localities are always changing, and this list is always growing. The very best way to ensure compliance with all applicable laws is to consult with legal counsel.
State Retirement Program
MarylandSaves is the state of Maryland's program designed to give employees access to a retirement savings plan when their employer does not offer a private plan meeting the minimum standards. You can read more about state retirement programs at the link below.
Parental Leave Act
Under the Parental Leave Act (PLA), an employer with 15 to 49 employees must allow eligible employees to take six weeks of unpaid leave in a 12-month period for the birth or adoption of the employee's child.
An employee is eligible if he or she requested parental leave and has worked:
- For the employer for at least 12 months
- For 1,250 hours during the previous 12 months
- At a worksite where at least 15 employees work within a 75-mile radius
Maryland Department of Labor: Parental Leave - Important Guidelines
Maryland employers with 15 or more employees must permit employees to use existing accrued paid leave (e.g. sick leave, vacation time, paid time off, compensatory time) for bereavement purposes related to an “immediate family member,” which is defined as an employee’s spouse, parent, or child, under the Flexible Leave Act. The Flexible
Maryland's Reasonable Accommodations for Disabilities Due to Pregnancy Act
Maryland law requires employers with 15 or more employees to provide reasonable accommodation to an employee temporarily disabled due to pregnancy unless the accommodation would impose an undue hardship on the employer’s business. Covered employers are also required to post notice to employees of their rights under the law, and to include information regarding such rights in an employee handbook.
Maryland and Montgomery County Earned Sick and Safe Leave Laws
Employers with employees in Maryland and in Montgomery County have specific paid/unpaid sick leave requirements. Employers must comply with both county and state requirements for employees in Montgomery County, while only the state law impacts employees in the rest of the state.
Maryland employers should familiarize themselves with specific compliance issues and certain key considerations for separating employees.
In Maryland, the final paycheck may be issued on the next regularly scheduled payday.
Find guidance on pay equity for employers in Maryland from the Department of Labor.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.