12 Citations
Are you a business owner in Maryland? Have you been thinking about starting a business in Maryland?
If that’s the case, this guide can help you ensure you remain fully compliant with the state’s labor laws.
Labor laws in the Free State, as Maryland is sometimes called, can create a steep landscape with winding passages, through which a wrong turn can lead you straight into civil lawsuits, big-money fines, or even imprisonment. As such, it’s important to become familiar with at least some of the many different state-specific employment regulations the Maryland state government uses to oversee its labor force.
The objective for this article is a simple one: to provide you with everything you need to understand labor laws in Maryland, ensuring a healthy, conducive, and productive work environment. If you’re looking for the laws of another state, this is just one of our 50-part guide to U.S. labor laws from all the states.
Let’s get started and explore Maryland’s labor laws.
Meals and Breaks in Maryland
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💡Did You Know?
Maryland has no specific state regulation concerning employee breaks. However, there is special mention of a law that protects employed minors. This law states that minors must be provided a 30-minute break for every five consecutive hours worked.
Without a state-specific law governing worker break times in Maryland, the federal Fair Labor Standards Act (FLSA) reigns supreme. Per the federal law on break time, employers must abide by two rules:
- If an employee works through their meal break, they must be paid because they spent their time working
- If an employee doesn’t perform work duties during their break and are allowed to spend their time as they choose, their breaks may be considered unpaid Under the FLSA, employee breaks may range from 5-20 minutes.
Employers must be aware of federal regulations and any industry-specific standards that may impact break policies. Additionally, individual employment contracts or collective bargaining agreements may address break requirements, so employers and employees should review applicable documents for any specific provisions.
Maryland also abides by the Healthy Retail Employee Act, which specifies that an employer must provide (un)paid breaks if they own a retail establishment that:
- Primarily sells goods to customers on-premises (physical retail);
- Has 50 or more retail employees; and
- Has been open and operational for the past 20 or more calendar weeks
The breaks must adhere to the following rules:
- If a work shift is between 4 and 6 non-consecutive hours, no break is required
- If a work shift is between 4 and 6 consecutive hours, a 15-minute break is required
- If a work shift is more than 6 consecutive hours, a 30-minute break is required
- If a work shift is 8 or more consecutive hours, a 30-minute break is required, with 15 additional minutes for every 4 additional consecutive hours worked
Leave and Paid Time Off in Maryland
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💡Did You Know?
Leave and PTO laws in Maryland follow federal leave laws and The Maryland Healthy Working Families Act (MHWFA), which took effect on February 11, 2018.
The MHWFA requires all employers with employees whose primary work location is in Maryland to provide earned sick and safe leave, regardless of where the employer is located in the state.
According to the MHWFA:
- Employers with more than 15 employees are required to provide paid earned safe and sick leave (those with less must provide unpaid earned safe sick leave)
- All employees in Maryland are entitled to accrue sick and safe leave unless exempt from coverage under the law
- Leave accrues at the rate of one hour for every thirty hours an employee works
- Employees are not entitled to accrue sick and safe leave during any 2-week pay period in which the employee worked fewer than 24 total hours, any 1-week pay period in which the employee worked fewer than a combined total of 24 hours between the current and immediately preceding pay periods, or any pay period in which the employee is paid twice per month but in which they worked fewer than 26 hours
- The leave hours provided for under the law are the minimum number of hours an employee is entitled to earn and accrue. However, employers may provide more leave for their employees as they see fit.
Maryland Required Leave
In Maryland, the leaves an employer is expected to provide are categorized into required leave and non-required leave.
Required leave in Maryland includes:
Sick and Family Leave
A sick and family leave is one that an employee can request for:
- Healing from an injury, whether mental or physical,
- Caring for a family member with an injury or condition, whether mental or physical,
- Obtaining preventative medical care for themselves or a family member, and
- Parental leave for the birth or adoption of a child.
Employers in Maryland must provide for sick leave accrual where non-exempt workers can earn 1 hour of sick or family leave for every 30 hours worked. This amounts to up to 40 hours of sick leave per year.
Additionally, employers with 15 or more employees must provide paid sick leave, while employers with 14 or fewer employees aren’t required to pay for sick leave.
Starting in 2026, the new Time To Care Act recently passed by Maryland empowers the Maryland Division of Family and Medical Leave Insurance (FAMLI) system to provide workers with the opportunity to take time away from work to care for themselves or a family member and still receive up to $1,000 a week for up to 12 weeks. FAMLI was established through the Time To Care Act.
Jury Duty Leave
The Maryland Code under Court and Judicial Proceedings states that employees summoned for jury duty have full legal protection and coverage in case of employer retaliation.
As such, an employer cannot:
- Discharge, threaten, or coerce an employee if they lost work time because jury duty conflicts with their work hours
- Cannot require an employer to work certain hours if it conflicts with jury duty hours.
- Require an individual who is summoned and appears for jury service for 4 or more hours, including traveling time, to work an employment shift that begins either on or after 5 p.m. on the day of the individual's appearance for jury service or before 3 a.m. on the day following the individual's appearance for jury service
- Require an employee to use their annual, sick, or vacation leave to respond to a summons under this title for jury service
Voting Time Leave
Maryland election law requires employers to provide employees who are registered voters with 2 hours of paid voting time off. However, employees are required to provide proof of voting on a form as determined by the State Board.
Domestic Violence or Sexual Assault Leave
The Maryland Healthy Working Family Act offers coverage for employees who have been victims of domestic abuse or whose family members have been victims of domestic abuse.
As a result, employers are required to provide earned sick leave after an employee or their family member has suffered domestic violence, sexual violence, or stalking.
This leave is provided for employees to seek medical attention, pursue legal proceedings, obtain services from a protective organization, or address other issues that may have arisen due to the assault, such as settling temporary relocation.
Emergency Response Leave
Employees who are members (volunteers or not) of The Civil Air Patrol, any Civil Defense Organization, a volunteer fire department, or a rescue squad are entitled to adequate time off to respond to emergency events declared by the Governor. Consequently, employers are not allowed to discharge, demote, or punish in any form an employee who is eligible for this leave.
Any eligible employee is permitted to receive up to 15 days off per year under this leave as long as they meet two conditions:
- The employee is certified by the American Red Cross as a volunteer; and
- The said organization requests their services in case of a Level 2 or higher-level disaster
Organ and Bone Donation Leave
Employees employed by private organizations are allowed up to 60 days of unpaid leave when undergoing organ donation, and up to 30 days of unpaid leave when undergoing bone marrow donation.
For state employees, the leave counts to 30 days for organ donation and up to 7 days for bone marrow donation.
Military Leave
Employers must provide up to 15 days of paid leave for employees who are members of a reserve unit of the armed forces or organized state militias. However, other days of deployment or military training after this 15 days of leave may remain unpaid.
The state of Maryland also recognizes Deployment Leave for families of armed forces members.
Additionally, for businesses with 50+ employees, any employee who has worked full-time or part-time for at least 1,250 hours in the past 12 months is entitled to a day off work on the day of their immediate family member’s deployment.
Maryland Non-Required Leave
Non-required leave in Maryland are those an employer is not required to provide, although they may choose to provide them as a sign of goodwill to create a healthy work environment.
Bereavement Leave
In the case of death in the family:
- A maximum of 5 working days may be charged to sick leave in the event of a death of a member of the employee or spouse’s immediate family
- An employee may elect to receive up to 3 days of bereavement leave instead of using 3 of the 5 sick days that an employee is allowed to use upon the death of members of the employee’s immediate family
- A maximum of 1 working day may be charged to sick leave for other designated family members
Employers with 15 or more employees must provide paid bereavement leave. Employees can only use earned leave (accrued days) for these instances.
Vacation Time
Employers are not obligated to provide paid leave for vacation time. However, if they do, it should be in line with the established policies of the company.
Holiday Leave
Private employers are not required to provide (un)paid holiday leave for employees, while individuals employed by the state of Maryland have the right to 11 paid holidays per year.
Overtime Regulations in Maryland
Maryland mandates that employees must be paid 1.5 times their usual hourly rate for work over 40 hours. This is under the federal Fair Labor Standards Act (FLSA).
For some occupations in Maryland, overtime is calculated based on a different period of time. Certain farm workers, for example, receive overtime for hours worked over 60 a week.
According to the FLSA, any time worked over 40 weekly hours is considered overtime. However, it’s important to note that working over 8 hours per day does not necessarily count as overtime – it’s only the hours totaling over 40 hours per week that count.
Since employers must calculate overtime pay at 1.5 times the employee’s usual hourly rate, an employee earning the state minimum wage of $13.25 can receive overtime wages of $19.87 per hour.
Some exceptions to Maryland’s overtime laws include:
- Immediate family member of the employer
- Certain agricultural employees
- Executives, administrative, and professional employees
- Volunteers for educational, charitable, religious, and non-profit organizations
- Employees under 16 working less than 20 hours per week
- Outside salespersons
- Commissioned employees
- Employees enrolled as a trainee as part of a public school special education program
- Non-administrative employees of organized camps
- Certain establishments selling food and drink for consumption on the premises grossing less than $400,000 annually
- Drive-in theaters
- Establishments engaged in the first canning, packing or freezing of fruits, vegetables, poultry, or seafood
- Bowling establishments, and institutions providing on-premise care (other than hospitals) to sick, aged, or individuals with disabilities for all work over 48 hours per week
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Wages and Benefits in Maryland
Minimum wage (15+ employees)
$13.25
Minimum wage (<15 employees)
$12.80
Minimum wage (tipped employees)
$3.63
By January 1, 2024, the minimum wage in Maryland is set to increase to $15 per hour regardless of business size.
For tipped employees (who regularly receive tips amounting to $30 or more monthly, the minimum wage is $3.63 as long as the employee earns at least the minimum wage of $13.25 every hour with tips included in this total.
It is important to note that minimum wages can differ by county in Maryland.
For example:
In Montgomery County, the hourly minimum wage is…
- For businesses with 51+ employees: $16.70
- For businesses with 11-50 employees: $15.00
- For businesses with less 10 or fewer employees: $14.50
In Howard County, the hourly minimum wage is…
- For businesses with 15+ employees: $15.00
- For businesses with <15 employees: $13.25
Frequency of Pay
Employees in Maryland must be paid at least once every two weeks or twice in a month. However, executive, professional, and administrative employees may be paid less frequently
Additionally, employers are required to provide employees with a statement of earnings, including hours worked, rates of pay, and deductions.
Final Paycheck
As stipulated by the Maryland Department of Labor, employers must pay all final wages to employees by their next scheduled payday, regardless of the cause of termination.
Employee Benefits
Maryland does not mandate employers to provide specific benefits beyond what federal law requires. However, many employers in the state offer benefits such as health insurance, retirement plans, and paid time off to attract and retain employees.
Many employees working with the state of Maryland are eligible for various benefits such as:
- A maximum of 5 working days may be charged to sick leave in the event of a death of a member of the employee or spouse’s immediate family
- An employee may elect to receive up to 3 days of bereavement leave instead of using 3 of the 5 sick days that an employee is allowed to use upon the death of members of the employee’s immediate family
- A maximum of 1 working day may be charged to sick leave for other designated family members
Prevailing Wages in Maryland
Prevailing wage assists prime contractors and subcontractors who perform work on state or political subdivision construction contracts including school construction where the contract value is \$250,000 or greater with state funding of 25% or more. It regulates the hours of labor, rates of pay, conditions of employment, obligations of employers, and duties of certain public officials under contracts and subcontracts for public works in Maryland.
For the prevailing wage law to be applied:
- The contracting public body is a unit of State Government or an instrumentality of the State, and there is any State funding for the project; or
- The contracting public body is a political subdivision, agency, person, or entity (such as a county), and the State funds 25% or more of the project, including school construction
The law requires employees on a public works contract to be paid overtime for any time over 10 hours worked in a single day, and for work performed on a Sunday or any legal holiday.
For prevailing wage determination, A wage determination issued for a project specifies the wage and fringe benefit rates for each classification of worker determined to prevail in that locality for that type of construction.
Employers, particularly construction companies looking to comply with prevailing wage laws, can find current prevailing wage rates in Maryland by consulting the Maryland Department of Labor, Licensing and Regulation (DLLR).
The DLLR website typically provides up-to-date information on prevailing wage rates for various trades and occupations involved in public works projects.
Hiring Practices in Maryland
Hiring laws in Maryland follow the same federal regulations as in the rest of the US. They operate with the fundamentals of anti-discrimination laws, ensuring every job applicant is granted an environment free of bias.
An employer cannot discriminate against
- Race
- Religion
- Nationality
- Sex
- Age
- Marital status
- Sexual orientation
- Gender identity
- Genetic information
- Disability
As such, an employer cannot publish job advertisements with discriminatory information/conditions or ask discriminatory questions during job application, or circulate information that could affect potential employment. This guarantees equal employment opportunities.
Maryland also follows The Job Applicant Fairness Act, which prohibits employers from asking an applicant for their credit report to decide whether to hire, discharge, or change their pay rate.
Background Checks
Maryland follows the Ban the Box law, which states an employer is not allowed to ask about or look into an applicant’s criminal history until their first-person interview. This legislation applies to businesses with 15 or more employees regardless of employment type.
The only exception to this law applies to occupations or hires involving schools, security, and financial institutions.
Drug Testing
Unless the employee falls into a safety-sensitive position, such as a bus driver subject to regular and random testing, all other employees can be tested upon reasonable suspicion.
Drug testing in Maryland operates with the following regulations:
- Marijuana is legal in Maryland – however, employers are allowed to discipline an employee who is also a medical marijuana patient should they test positive in the workplace and run afoul of company testing regulations
- Bodily samples such as blood, urine, hair, and saliva are legal, but breath testing is not — especially for breath alcohol testing
- Employers are allowed to test for any controlled dangerous substance, as long as the samples are collected and processed by a licensed laboratory and the reasons for the testing are justifiable
- Employers must use either licensed laboratories or those certified by the Substance Abuse and Mental Health Service Administration
Health and Safety Standards in Maryland
Maryland requires its employers to act per the Occupational Safety and Health Act (OSHA), and its secondary legislation titled Maryland Occupational Safety and Health (MOSH).
Employers are required to provide a safe working environment and comply with MOSH standards.
To report unsafe working conditions in Maryland, employers and employees can contact MOSH directly or submit a complaint through the Maryland Department of Labor website. MOSH investigates complaints and conducts inspections to maintain workplace safety and health standards.
Employers and employees can find additional resources and information on workplace safety regulations on the Maryland Department of Labor website and the MOSH’s website.
Regular training and communication about safety protocols are essential for maintaining a secure work environment in compliance with Maryland’s workplace safety standards.
Child Labor Laws in Maryland
In Maryland, minors under 14 are not allowed to work in any capacity or form. While minors between the ages of 14 and 17 are allowed to work, they need a signed and approved work permit issued by the Maryland Department of Labor.
Labor Laws for Minors Aged 14 and 15
For minors aged 14 and 15, work hours are restricted as follows:
- On a school day: 3 hours
- On a non-school day: 8 hours
- On a school week: up to 18 hours
- On a non-school week: 40 hours
- Working hours: between 7:00 a.m. and 7:00 p.m. (except from June 1st through Labor Day, when they can work until 9:00 p.m.)
Labor Laws for Minors Aged 16 and 17
For minors aged 16 and 17, the rules guiding work hours are more flexible – the main difference is they cannot spend more than 12 hours per day at school and work combined. This is because they must get at least 8 consecutive hours of rest per day while not at work or school.
Prohibited Occupations for Minors in Maryland
Regardless of age group, all minors have the same prohibited occupations. These occupations include:
- Working in or about factories or manufacturing related to explosives or items with explosive components;
- Working in logging, mining, or any occupation with power-driven machinery (metalwork, wood processing, etc);
- Operating lifts, elevators, and other hoisting apparatuses;
- Cleaning, oiling, or any other form of machinery maintenance;
- Working around blast furnaces;
- Working at docks or wharves;
- Working at railroads;
- Driving motor vehicles;
- Erection and repair of electrical wires or components; and
- Working in distilleries or other alcoholic beverage production facilities
The exemptions to child labor laws include situations in which the minor’s occupation isn’t considered employment, and the activities are performed outside a school day and don’t involve any hazardous work.
These include:
- Minors employed by family members or relatives, so long as the minor is not 15 or under and/or working in mining or manufacturing;
- Minors caddying on a golf course;
- Minors manufacturing evergreen wreaths in or about a home;
- Minors working on newspaper delivery;
- Minors working on an instructional sailboat as an instructor;
- Minors working as performers or entertainers (TV, radio, online, etc); or
- Minors working as counselors or assistant counselors in certified youth camps
Employee Termination and Resignation in Maryland
Maryland follows the employment-at-will doctrine, allowing employers to terminate employees at any time and for any reason, unless there’s a contract specifying otherwise. Similarly, employees can resign without notice for any reason.
However, exceptions exist, such as anti-discrimination laws prohibiting termination based on bias or retaliation.
Maryland does not have specific state laws mandating notice requirements for termination. Employers and employees may have contractual agreements specifying notice periods. Additionally, state law does not mandate severance pay unless specified in an employment contract.
Right-to-Work Law
Maryland is not a right-to-work state – employees cannot be required to join or support a union as a condition of their employment. They also can’t be barred from joining one if they want to, and can’t be required to end their union membership to obtain employment, either.
Unemployment Benefits in Maryland
Unemployment insurance benefits range from a minimum weekly benefit amount (WBA) of $50 per week to a maximum WBA of $430 per week. The employee’s WBA is determined by their wages during a base period.
An unemployment benefit claim is effective on the Sunday immediately before the date that the claim is filed and will remain in effect for one year. The law offers up to 26 weeks of total unemployment insurance benefits if all requirements of the Maryland Unemployment Insurance Law are met.
To qualify:
- The individual must have a recent work history;
- They must have earned a certain amount during their base period; and
- They must be unemployed through no fault of their own
Eligibility for unemployment insurance cannot be determined without filing a claim.
Unemployment Benefit Application
Unemployment applications in Maryland may be submitted by telephone or by internet. Claims can be filed by telephone through a claim center Monday through Friday from 8:00 a.m. to 3:00 p.m., in English or Spanish, or online 24 hours a day 7 days per week at http://www.mdunemployment.com/.
The regional claim centers and their phone numbers are as follows:
- Baltimore Metro South (410-368-5300, 1-877-293-4125)
- College Park (301-313-8000, 1-877-293-4152)
- Cumberland (301-723-2000, 1-877-293-4125)
- Salisbury (410-334-6800)
- Somerset County (1-877-293-4125)
- Towson (410-853-1600, 1-877-293-4125)
Penalties for Noncompliance in Maryland
Violations of Maryland labor laws can result in various penalties and fines, depending on the nature and severity of the infraction. Penalties may include fines, back wages, and other corrective actions. Repeated or willful violations may lead to more severe penalties such as imprisonment.
Enforcement of labor laws in Maryland is carried out by various agencies, including the Maryland Department of Labor. Inspections and audits may be conducted to ensure compliance with wage and hour laws, workplace safety standards, and other regulations.
Violations can be reported through channels provided by the Maryland Department of Labor, including through online complaint forms.
Other Essential Information About Labor Laws in Maryland
Whistleblower Protection Laws
Maryland protects employees who report violations of state laws, ensuring they are shielded from retaliation. Maryland Whistleblower law differentiates between whistleblowers in the public and the private sector.
In the public sector, an employer is not allowed to fire, threaten, or discriminate against an employee if they report:
- A violation of the law;
- A substantial and specific danger to public health and safety;
- Mismanagement of state funds;
- Gross mismanagement;
- Gross waste of money; or
- Abuse of authority
Coverage typically varies with:
- The industry an employee works in,
- The gravity of misconduct being reported, and
- The type of misconduct being reported
Use Of Social Media
An employer cannot ask employees to provide their username and password for their private social media accounts for any reason. This is in accordance with the Username and Password Privacy Protection Law.
However, an employer can legally:
- Ask an employee for login credentials to any work-related, non-personal accounts that provide access to the employer's internal computers;
- Ask for an investigation of an employee's work-related computer based on receipts of information about unauthorized downloads, financial data, or similar misconduct that could jeopardize business operations; or
- Ask for an investigation of an employee's work-related computer to ensure compliance with financial and security laws
Employee Monitoring
Employers in Maryland can conduct phone call surveillance in cases where it is essential for the job being performed (such as customer service calls). However, employers are generally prohibited from recording or tapping into employees’ personal calls or in-person conversations unless they have permission from all participants.
Expense Reimbursement
Public employees are eligible for reimbursement for meals and incidental expenses. Each year, new rates are calculated and published on the official website.
Reimbursements include:
- Meal allowances
- Porter fees and hotel tips
- Transportation tips
The Bottom Line on Maryland Labor Laws
Navigating Maryland’s intricate labor laws is essential for employers and employees to foster a fair and compliant work environment. From minimum wage requirements to break regulations and overtime provisions, understanding these laws is paramount.
Employers must stay informed, ensuring they meet their obligations and promote the well-being of their workforce. Likewise, employees should know their rights, contributing to a workplace where fairness and respect prevail.
As the employment landscape evolves, staying updated on labor laws remains a cornerstone for a successful and harmonious work environment in Maryland.
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