Every worker in Maryland depends on the income they earn at their jobs, which is why it is crucial for employers to be in compliance with strict wage and hours laws. Failure to properly compensate workers can turn into a very messy legal battle that can take a lot of time and money to resolve.
In previous blog posts, we have explored the importance of understanding minimum wage laws, overtime rules and even child labor restrictions. In this post, we will look at some of the more general limitations and freedoms employers have when it comes to wage standards in Maryland.
In terms of the limitations in place, the Maryland Department of Labor, Licensing and Regulation notes that employers must:
- Pay employees on time
- Pay employees twice per month, or at least once during every two-week period
- Not make deductions from a person’s paycheck without sufficient reason or permission
- Pay employees for all hours worked
Employers do have freedoms when it comes to certain wage practices. For example, an employer can:
- Choose whether to compensate employees for unused vacation or sick time upon termination
- Set wages as they see fit, as long as they are in compliance with state and federal laws
- Set company-specific policies that allow for or deny severance pay
- Choose whether to pay employees during lunch or other breaks
This is just a small sampling of what employers can choose to do and what they must do, according to the DLLR. There are many more standards in place and not all of them are relevant to every company or employee.
Of course there are exceptions and unique circumstances that can challenge each of these, so it is important to speak with an attorney before making any wage-related decisions. Employees and employers should know that wage disputes are taken very seriously, and it is important for employers to understand what rights they have and the laws with which they must comply.