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1 Thank you for downloading Agent 77 s STATE EMPLOYMENT REGULATIONS FOR MARYLAND. This form is provided to you as is. As provided, we believe it meets the requirements needed for state compliance, as applicable, at the time you download it. Any substantive change to the contents of this document may result in potential legal liability for you and your company. Agent 77, Inc. accepts no liability or responsibility for any of our documents that have had the contents altered beyond simply filling in the appropriate blanks and/or replacing place holder text and adding your company logo and information. This document is provided to you with the understanding it is not a legal or accounting opinion and should not be construed as such, and that Agent 77, Inc. is not engaged in the business of rendering legal or accounting services. If you need specific advice on any legal or accounting issue, the services of a competent professional should be sought. Please see for more information. This and all documents downloaded from our website are Copyright 2005, 2006, 2008, 2012, 2013, 2014 Agent 77, Inc. Reminder: Agent 77 s license prohibits you from copying and distributing this STATE EMPLOYMENT REGULATIONS FOR MARYLAND to anyone outside of your company. Doing so is a violation of this license and will result in the revocation of your subscription and/or prosecution under federal copyright laws as well as possible civil litigation. Please see for a copy of the current license agreement. Maryland_Regs

2 What s New Maryland law now prohibits employers from printing an employees Social Security Number (SSN) on any wage payment checks or related documents (attachments to the wage payment check, notice of direct deposit, notice of credit to a debit card or card account, etc.) Maryland minimum wage rose from $5.15 per hour to $6.15 per hour on February 16, Also, the minimum wage for tipped employees rose from $2.38 to $3.08 per hour on that date Maryland law now states that employees may not be required to use any annual, vacation or sick leave when attending jury duty or serving as a witness Most employees in Maryland must be paid the federal minimum wage that is $6.55 as of July 24, The minimum wage for tipped employees is 50% or $ Most employees in Maryland must be paid the federal minimum wage that is $7.25 as of July 24, The minimum wage for tipped employees is 50% or $ Changes were made to the following sections: Family Leave, Military Leave, Jury Duty, Work Hours and Breaks, Minimum Wage, Payment of Wages, Child Labor and Discrimination. The following sections were added: Breast Feeding, New Hire Reporting, Job Reference Liability, and Smoking Changes were made to the following section: State Continuation of Benefits Changes were made to the following sections: Minimum Wage, Military Leave and Payment of Wages Changes were made to the following section: Payment of Wages Changes were made to the following section: Discrimination. Maryland_Regs

3 Introduction Employment laws vary from state to state with some being more employee-friendly than others. Federal regulations set minimum standards of worker protections that all employers of a given size must meet. Individual states, however, are free to grant workers additional or expanded rights or protections above this federal minimum. Virtually all employers in the U.S. are subject to federal employment regulations. Only the smallest, strictly local employers are not subject to federal regulations. If an employer does any of the following, they are participating in interstate commerce and are subject to federal employment regulations: Production of goods for commerce, such as transportation or communication Use of mail over state lines Interstate communications using the telephone Use of the Internet over state lines Interstate communications using electronic mail Make purchases from out-of-state vendors Sell to customers in other states This summary of employment regulations does not include information for those few employers not subject to the federal minimum employment regulations. Many states have regulations for public employers that are different than those for employers in the private sector. This document also does not include information on regulations (federal and state) that apply only to public sector employers. In this document we summarize the workplace regulations and worker protections available in Maryland. Although not an exhaustive list, it covers the major topics small to mid-sized employers must deal with on a regular basis. Covered areas include: Wage, hour and overtime rules (including child labor and break rules); Leaves of absence (family leaves, voting time and jury duty); Discrimination and harassment regulations; and State rules on continuation of benefits. The federally mandated, but state run new-hire reporting requirements are covered under a separate document, available for download from Libretto or from the Agent 77 store. The following Quick View table summarizes these regulations. This is followed by a more detailed description of these regulations. Please be sure to read both carefully to understand your responsibilities under Maryland and federal law. Also, see the resources section below for reference websites and Libretto tools that can help you comply with these regulations. Maryland_Regs 1 of 10

4 QUICK VIEW OF STATE EMPLOYMENT REGULATIONS FOR MARYLAND Topic Minimum Wage Overtime Payment of Wages Work Hours and Breaks Child Labor Maryland Regulation $7.25 / hour Training wage for employees under 20 (first 90 days) is $4.25 / hour Tipped employees may be paid a minimum of $3.63 Some localities have a higher minimum Posting requirements apply Non-exempt employees must be paid at least 1.5 times their regular rate for hours worked over 40 in a given week Employees must be paid at least bi-weekly or semi-monthly Exempt employees may be paid less frequently by agreement Final paychecks must be delivered no later than the following payday Employers may not print employees Social Security Number (SSN) on any wage payment checks or related documents Certain provisions apply to vacation pay upon termination as listed below. Maryland has no break time rules, except for minors. Employers employing minors under 18 must keep an employment certificate on file (issued by Superintendent of Schools) Federal and Maryland law prohibit minors in certain occupations. See the U.S. Department of Labor and the Maryland Department of Labor, Licensing & Regulation for information on these prohibitions (contact information is in the reference section). Required 30-minute break for every 5 hours worked See the details section below for restrictions on hours minors may work Posting requirements apply. Maryland_Regs 2 of 10

5 QUICK VIEW OF STATE EMPLOYMENT REGULATIONS FOR MARYLAND Family Leave/Civil Air Patrol Leave Military Leave The Federal Law is outlined below: Employers with 50 or more employees must grant up to 12 weeks of unpaid family medical leave to employees who have completed a year of service or 1250 hours Leave must be granted for birth or adoption of a child, serious medical condition of the employee, to care for a family member with a serious medical condition, qualifying exigency for military leave and serious illness/injury of covered service member for military leave. Employee must be reinstated to same or equivalent position after completion of leave Benefits must be maintained during leave. Maryland has a separate Flexible Leave Act that applies to employers with more than 15 employees. Certain benefits apply to those who adopt a child and also for disabilities related to pregnancy and childbirth. Employers with more than 15 employees must grant Civil Air Patrol leave. Maryland has no separate Military Leave law aside from the Federal Law outline below Employers must grant up to 5 years of military leave Employee must be reinstated to same or equivalent position after completion of military leave Employers may not terminate or threaten to terminate any employee called to military service Special benefit rules apply for military leave Jury Duty Voting Time Breast Feeding New Hire Reporting Leave is required, but is unpaid Employees may not be required to use annual, vacation or sick leave when attending jury duty or serving as a witness Employee must be reinstated to same position after completion of jury duty Crime victims must be able to attend court proceedings 2 hours for any election where employee is qualified to vote, provided employees do not have 2 hours of unscheduled time when polls are open Employer may require proof of having voted A woman may breast feed her child in any location where she is authorized to be present. Employers are required to report certain information for new hires/rehires within 20 days of such hire/rehire. Maryland_Regs 3 of 10

6 QUICK VIEW OF STATE EMPLOYMENT REGULATIONS FOR MARYLAND Job Reference Liability Smoking in the Workplace Employers are generally immune for liability if providing truthful information in good faith. Smoking is prohibited in places of employment and employers must establish and post a written policy on smoking effects. Discrimination and Harassment Continuation of Benefits Maryland prohibits employers from discriminating based on ancestry or national origin, race or color, religion, age, physical or mental disability, marital status, sexual orientation or sex (including sexual harassment, pregnancy, childbirth, and other pregnancy-related conditions) Employers who offer health coverage must offer continuation of hospital, surgical and major medical benefits to their employees and their dependents Employees must have been covered for 3 months prior to termination Up to 18 months of continuation available as long as premiums paid in a timely fashion Coverage can be denied if employee was terminated for cause Notice of rights must be included with certificates of coverage Employees must notify employer within 45 days of termination that they wish to elect continuation Employers then have 14 days to notify employees and dependants of cost of coverage and how to elect Coverage may be terminated if covered person remarries Premiums may not exceed group rates plus an administrative fee approved by the Commissioner of Insurance Maryland_Regs 4 of 10

7 Wage, Hour and Overtime Rules Employers are subject to the federal minimum wage, hour and overtime rules through the Fair Labor Standards Act. This act specifies that businesses that do at least $500,000 in gross revenue, as well as all health care facilities and schools are subject to the federal rules. Also, employers involved in interstate commerce are subject to the federal rules. Minimum Wage Maryland minimum wage is $7.25 per hour. A special minimum wage of $4.25 per hour may be used for employees under 20 years old for the first 90 days. Employers may pay tipped employees a minimum of $3.63 per hour, provided that the total wages plus tips come to at least the minimum of $7.25 per hour. Employers of tipped employees are prohibited from making any wage deductions from employee wages for an amount equivalent to a customer's charge for food or beverages if a customer leaves without paying. Be aware that certain local governments in Maryland have a higher minimum wage for employees in their jurisdictions. Be sure to contact your city or county government to see if there are any local minimum wage rules for your business. Employers must keep a summary of Maryland's minimum wage and overtime law posted conspicuously in each place of employment in a form required by the labor commissioner. Finally, both federal and Maryland regulations allow employers to apply for licenses to pay sub-minimum wages to certain disabled persons. Please contact the U.S. Department of Labor or the Maryland Department of Labor, Licensing & Regulation for more information on applying for these licenses. (Contact information for both are listed in the reference section below.) Overtime Maryland has the same overtime rules as the federal government. That is, for any hours worked over 40 in a given week, non-exempt employees must be paid at least one and onehalf times their regular pay. Like the federal rules Maryland exempts certain employees from minimum wage and overtime rules. Excluded employee classes include: executive, administrative, professional, outside salespeople and computer professionals. (Use Libretto s FLSA Resource Package for help in determining whether a given employee is exempt). Maryland also permits exemptions for certain small employers not involved in interstate commerce. See the Maryland Department of Labor, Licensing & Regulation web site for a list of these exemptions. Payment of Wages Maryland law requires that non-exempt employees be paid at least bi-weekly or semimonthly. Exempt employees may be paid less frequently by agreement. These regular pay periods must be established and published for all employees. Final paychecks must be delivered no later than the payday following termination. Deductions from the final paycheck may not be made without the employee's written consent, unless required by law. Employers may not require employees to be paid electronically. Maryland_Regs 5 of 10

8 Note that employers may not print an employee's Social Security Number (SSN) on any wage payment checks or related documents (attachments to the wage payment check, notice of direct deposit, notice of credit to a debit card or card account, etc.). If an employer informs employees in writing at the time of hire that unused vacation leave will be lost or forfeited upon termination, then an employee is not entitled to it. Where employers do not have a written policy that limits the compensation for accrued leave to a terminated employee, that employee is entitled to the cash value of unused warned vacation leave that was left, provided it was otherwise usable. Employers must provide each employee at the time of hire a notice of: 1) the rate of pay; 2) the regular paydays; and 3) leave benefits. Effective October 1, 2013, a new law is enacted setting procedures for employees to seek a lien against employers for unpaid wages owed. Work Hours and Breaks Maryland has break time rules for minors (see below). Child Labor Maryland child labor law requires all employers employing minors under the age of 18 to have employment certificates on file (issued by a city or county superintendent of schools). Both federal and Maryland law prohibits minors from working in hazardous or certain other occupations. Please contact the U.S. Department of Labor or the Maryland Department of Labor, Licensing & Regulation for more information on restricted occupations for minors. Employers who employ minors less than 16 years of age are subject to strict limits for hours worked per day and per week for their minor employees: 1. When school is in session, children 14 and 15 years of age may NOT work: During school hours, unless employment is part of a vocational training program; More than 4 hours per day, and More than 23 hours per week. 2. When school is NOT in session (including summer vacations and holidays), children under the age of 16 may NOT work. More than 8 hours per day; nor More than 40 hours per week. 3. Daily hours of work may not be before 7:00 AM or after 8:00 PM except between June 1st and Labor Day when working hours may be extended to 9:00 PM. Employers who employ minors 16 and 17 years of age are subject to the following limits for hours worked per day. These minors must: Not spend more than 12 hours on a combination of school and work hours in a 24- hour period, and Be allowed at least 8 consecutive hours of non-school, non-work time in a 24-hour period. Maryland law also requires that any minor working 5 or more continuous hours in a day be given a 30-minute break. Maryland_Regs 6 of 10

9 Employers must keep posted conspicuously in each place where a minor is employed, a printed notice of the provisions of the child labor law in a form provided by the Commissioner of Labor and Industry. Leaves of Absence Family Leave Federal law provides that employers with 50 or more employees must grant up to 12 weeks of unpaid family medical leave to employees who have completed a year of service or 1250 hours. This leave must be granted for the birth or adoption of a child, serious medical condition of the employee, to care for a family member with a serious medical condition qualifying exigency for military leave and serious illness/injury of covered service member for military leave. After completion of the leave the employee must be reinstated to the same or an equivalent position (as regards to salary, benefits and seniority). Also, benefits, such as health care coverage and retirement benefits, must be maintained during leave. The Maryland Flexible Leave Act (MFLA) applies to employers of 15 or more employees that already provide leave with pay under the terms of their employment policy or collective bargaining agreement. Employees who have accrued leave with pay may use such leave for the illness of their child, parent or spouse. Employees with more than one type of paid leave may elect the type and amount of leave to use. Employers are prohibited from discharging, demoting, suspending, disciplining or otherwise discriminate or threaten to take such action against an employee because the employee has taken authorized leave under the MFLA or participates in an investigation, proceeding or hearing under the MFLA. Employees who adopt a child are eligible for paid leave if they work for an employer who employs more than 15 employees, that provides paid leave following the birth of a child or for the illness of the employee's immediate family. Disabilities caused or contributed to by pregnancy or childbirth are temporary disabilities for job-related purposes and shall be treated as such under any health or temporary disability insurance or sick leave plan in connection with employment. Employers with more than 15 employees must provide employees who are members of the Maryland Wing of the Civil Air Patrol with no less than 15 days per calendar year of unpaid leave in order to respond to an emergency mission. Employees must give their employers as much notice as possible. Leave may not be concurrent with other forms of leave and employees cannot be required to exhaust all other available leave before using Civil Air Patrol leave. Military Leave Federal law requires that employees must be granted up to 5 years of military leave and must be restored to their position (or an equivalent position) within the company as if they had been on furlough. Also, employers may not terminate or threaten to terminate any employee called to military service, Please see Libretto s White Paper on USERRA for more details on military leave. Maryland provides that officers and enlisted members of the organized militia who are ordered to active duty or training are protected in their employment during periods of active duty or training, if the position left is not temporary and application for reemployment is made within 30 days after being relieved from duty or training. Maryland_Regs 7 of 10

10 If the applicant for reemployment is still qualified to perform the duties, the employee must be restored to the former position or a position of like seniority, status and pay. Effective October 1, 2013, employees will be able to take a leave of absence from work on the day that an immediate family member is leaving for, or returning from, active duty outside the United States as a member of the armed forces of the United States. Employers are prohibited from requiring employees to use compensatory, sick or vacation leave when taking such leave. This law applies to employers with 50 or more employees and to both part-time and full-time employees who have worked for the employer for at least hours during the last 12 months. Jury Duty Employers must provide leave for jury duty or to act as a witness in a trial, but need not pay for the leave. Employees may not be required to use any annual, vacation or sick leave when attending jury duty or serving as a witness. Also, employers may not terminate or threaten to terminate any employee called to jury duty, and employees must be restored to their position within the company as if they had been on furlough. Employers are prohibited from requiring employees who have been summoned for jury duty for at least four (4) hours, including travel time, to work shifts that begin on or after 5:00 PM on the day they appear for jury duty, or before 3:00 AM on the day following their appearance for jury duty. Employers may not terminate or threaten to terminate an employee who is the victim of a crime for taking leave to attend any court proceeding that they have a right to attend. Employees covered by FLSA exemptions serving on a jury must be paid their full salary (minus jury stipend) or risk losing their exemption status. Voting Time Employees must be granted up to two hours of paid leave for any election in which they are eligible to vote if the employee does not have 2 hours of unscheduled time when polls are open. Employers may require proof of having voted. Other Employment Regulations Breast Feeding A woman may breast feed her child in any location where she and the child are authorized to be present. New Hire Reporting Employers must provide, within 20 days of hire/rehire, the employee's name, address, SSN, first date of work, availability of health benefits, salary and pay frequency as well as employer's name, address, FEIN and state UC number on federal form W-4 or equivalent. The reports are sent to the Maryland directory of new hires. Job Reference Liability An employer acting in good faith is generally immune from civil liability for disclosing information about the job performance about a current/former employee or about the reasons that the former employee was terminated. Disclosure must be made to a prospective employer at the request of the employee or prospective employer. Maryland_Regs 8 of 10

11 Smoking Smoking is prohibited in all enclosed workspaces where an employer/employee relationship exists. Discrimination and Harassment Maryland prohibits discrimination or harassment based on: Ancestry or national origin Race or color Religion Age Mental or physical disability Marital status Genetic testing results Military Service Sexual orientation, or Sex (including sexual harassment, pregnancy, childbirth, and other pregnancyrelated conditions) AIDS or AIDS-related virus Employers with 15 or more employees are also covered by GINA, which prohibits discrimination based on genetic testing. Although Maryland has not specific law regarding sexual harassment for private employers, employers with more than 15 employees are subject to Title VII of the Civil Rights Act, as amended, which prohibits sexual harassment. Effective December 31, 2013, employers must keep each record that the Commissioner of Labor and Industry requires on 1) wages of employees; 2) job classifications of employees; and 3) other conditions of employment. State Continuation of Benefits Benefits change frequently. Currently continuation coverage requirements generally apply to employers that provide group health insurance coverage to employees; employers with fewer than 20 employees must comply. Eligible employees have the right to continue coverage for up to eighteen (18) months. The following link will provide further information: Resources Maryland Department of Labor, Licensing & Regulation United States Department of Labor Maryland State Directory of New Hires Maryland_Regs 9 of 10

12 Maryland Human Rights Commission Related Libretto Products FLSA Resource Package (for help in determining overtime exempt / non-exempt status of employees) Overtime Guidelines Break Period Guidelines Family Medical Leave of Absence Policy Military Leave of Absence Policy Jury Duty-Witness Leave Policy Voting Time Policy Prohibited Harassment and Nondiscrimination Policy & Employee Acknowledgement COBRA Continuation Coverage Policy General Notice of COBRA Continuation Coverage Rights COBRA Continuation Coverage Election Information. Notice And Form New Hire Reporting for Maryland Maryland_Regs 10 of 10

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