With targeted rules on pay transparency, earned sick and safe leave, and non-compete limits, Maryland establishes clear baseline expectations for employers within the state. Complementary requirements governing hiring, separation, and workplace conduct promote predictable compliance across various industries.
When it comes to talent and workforce management, Maryland-based employers need to comply with the following state employment laws:
The below information was last updated September 9, 2025. It is not intended as legal advice. Also, unless otherwise noted below, the following laws predominantly apply to the private sector.
A subset of employment law, labor law focuses on the relationships between employers, employees, and labor unions, particularly in the context of collective bargaining and workplace rights.
Central to US labor law is the National Labor Relations Act (NLRA), which protects employees’ rights to organize, join unions, and negotiate working conditions while restricting unfair labor practices. Still, states can enact additional laws, such as Right-to-Work statutes, that influence union membership and dues requirements.
Right-to-work states prohibit employers from requiring union membership or dues as a condition of employment (a.k.a. union security agreements).
Maryland currently has no right-to-work laws or regulations. Although, under section 14(b) of the National Labor Relations Act (NLRA), Maryland can pass a right-to-work law in the future if it chooses.
Employment law governs the individual rights of employees and their professional relationship with their employers, such as working hours, fair wages, anti-discrimination protections, and workplace safety.
| Maryland Minimum Wage | The state of Maryland uses its own minimum wage rate of $15.00 per hour, including a tipped minimum wage rate of $3.63 per hour for employees who earn tips with their base pay. Note: Maryland also has local minimum wage rates. |
|
Maryland Overtime Pay Laws |
According to state law, overtime pay in Maryland is calculated at 1.5 times the employee’s regular pay rate when working over 40 hours a week. Note: Additional daily overtime requirements apply to certain workers working within Baltimore city limits. |
| Maryland Pay Equity Law | Under the Equal Pay for Equal Work Act, no employer in Maryland may discriminate between employees in any occupation by paying a wage to employees of one sex or gender identity at a rate less than the rate paid to employees of another sex or gender identity if both employees work in the same establishment and perform work of comparable character or work on the same operation, in the same business, or of the same type. Furthermore, employers may not provide less favorable employment opportunities based on sex or gender identity. |
|
Maryland Pay Transparency Law |
In October 2024, Maryland passed the Wage Range Transparency Act and became one of 15 states (plus Washington D.C.) to have pay transparency laws. Employers must publish the wage range for the position, a general description of benefits, and any other compensation offered for the position in their public or internal job advertisement(s). |
|
Maryland Final Paycheck Law |
In Maryland, employees who voluntarily resign from a job or are involuntarily terminated must receive their final paycheck by the next regular payday. |
|
Maryland PTO Payout Laws |
Maryland currently doesn’t require employers to make PTO payouts if they state this fact in a written policy and notify employees in writing at the time of hire that unused vacation time is forfeited. It also does not have any regulations regarding the use of "use-it-or-lose-it" policies. |
| Maryland Paid Sick Leave (PSL) | Maryland currently requires employers with 15 or more employees to provide eligible employees with up to 64 hours of paid, protected sick leave under its Earned Sick and Safe Leave Policy. Employers with 14 or fewer employees must provide unpaid sick and safe leave for certain employees. Earned sick and safe leave accrues at a rate of one hour for every 30 hours worked. |
|
Maryland Paid Family and Medical Leave (PFML) |
In January of 2027, Maryland will be one of over a dozen states with a PFML program. Employers and employees will co-fund the program through equal payroll deductions. Eligible employees will be able to take up to 12 weeks of paid, job-protected leave. Contribution payments begin January 1, 2027, with benefits beginning on January 1, 2028. |
| Maryland Maternity Leave | Maryland doesn't have a maternity leave law, as this type of leave is an employer-provided benefit. Employees typically rely on a separate type of employer-provided leave, the federal Family and Medical Leave Act (FMLA), or a state-mandated PFML program to obtain maternity leave. |
|
Maryland Voting Leave Law |
Under Maryland statute §10-315, Maryland-based employers must provide employees with up to two hours of paid leave to vote in an election. Furthermore, employees must provide their employer with proof that the employee voted or attempted to vote. The proof shall be on a form from the State Board. |
All states must comply with federal health and safety standards overseen by the Occupational Safety and Health Administration (OSHA).
Maryland, however, also adopted and imposes additional, OSHA-approved regulations that are identical to those federal standards. Maryland’s State OSHA Plan is overseen by the Maryland Department of Labor and Industry.
Maryland currently has no work break laws or regulations.
As described by the Fair Employment Practices Act, and enforced by the Maryland Commission on Civil Rights, employers in Maryland are prohibited from discriminating against employees based on:
|
|
Maryland also requires employers to comply with specific anti-harassment mandates, as outlined in Senate Bill 450. Employers cannot, for example, make employment decisions on the basis of exposure to or rejection of sexual harassment.
The state doesn't, however, require employees to complete any harassment or discrimination training courses.
| Maryland Non-Compete Agreement Laws | Maryland is one of several states that limit the use of non-compete agreements. Maryland statute §3-716 restricts non-compete agreements for all employees earning less than or equal to 150% of the state minimum wage, earning equal to or less than $350,000 in annual compensation, employed in certain healthcare positions, or who are licensed veterinarians or veterinary technicians. State law does, however, permit agreements that limit an employee’s ability to take or use client or patient lists, or other proprietary client-related or patient-related information. |
|
Maryland Retirement Plan Laws |
Maryland is one of a handful of states with a mandatory retirement plan law. The MarylandSaves program requires employers of all sizes that do not already offer a workplace retirement plan to register or certify their exemption. |
| Maryland Pre-Employment Inquiries Laws | Under Maryland's Ban the Box law, employers with 15 or more full-time employees in the state are prohibited from asking a job candidate about conviction history before an in-person interview. |
| Maryland Layoff Laws | As regulated by the state’s Department of Labor, Maryland's Worker Adjustment and Retraining Notification (WARN) Act requires employers to provide notice of a mass layoff trigger that differs from the federal WARN Act. |
This information is provided as a courtesy and may be updated at any time. It is not intended as legal guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified employment or labor attorney or advisor.
Between constantly changing employment laws and updates to the Affordable Care Act (ACA), keeping your workplace compliant can be a time-consuming and costly challenge. Eliminate the stress and stay up to date with our Compliance Dashboard. View compliance alerts and get a bird’s eye view of what you need to do to avoid fines and penalties.
