Understanding Maryland Wage Payment and Collection Law

Maryland has laws in place to protect workers from not getting paid for their work.

If an employer fails to pay wages, the employee can file a complaint with the Maryland Department of Labor.

The Maryland Wage Payment and Collection Law requires employers to pay employees on a regular schedule, usually biweekly or semimonthly.

Employers must also provide a written statement with each payment that includes the pay period, pay rate, and total wages earned.

This law helps ensure that employees receive their hard-earned money in a timely manner.

Employers can run afoul of the law in many ways, including failure to pay on time, unpaid wages, and punitive docking of pay.

Unpaid tips, overtime, commissions, or bonuses can also be a violation of the MWPCL. Unauthorized deductions in pay and refusal to pay after separation are other examples.

Here are some ways an employer can be held accountable for their actions:

In a civil lawsuit, an employee who proves their MWPCL case may be able to recover up to three times the amount of wages owed plus reasonable attorney’s fees.

The Maryland Wage Payment and Collection Law (MWPCL) specifically covers employees who perform at least 50 percent of their work in Maryland.

If an employer tries to pay you as an independent contractor, be concerned - it may be a sign of misclassification.

Legitimate independent contractors are not covered by the MWPCL, so if you're unsure about your status, seek legal advice from a qualified employment lawyer.

Misclassified employees are often put in that position to avoid giving them important rights under the MWPCL and other laws.

The "economic reality" of the work-relationship determines a worker's status under Maryland law, so if you're not independently engaged in a business or trade, you may be an employee.

MWPCL violations can have serious consequences for employers. Failure to pay employees on time is a clear example of a violation.

This can lead to significant financial penalties and damage to an employer's reputation. Unpaid wages, including tips, overtime, commissions, or bonuses, are also a serious issue.

Employers must be careful not to dock pay in a punitive manner for alleged mistakes or rule violations. This can be seen in the example of punitive docking of pay.

Unauthorized deductions in pay are also a no-go under the MWPCL. This includes deductions that are not explicitly allowed by law.

Refusal to pay employees after separation is another clear-cut violation. This is not just a matter of refusing to pay, but also includes failing to pay accrued but unused vacation time.

Employers must also ensure they are paying employees the correct rate of pay. This includes paying employees according to the terms of their employment contract or collective bargaining agreement.

Here are some examples of MWPCL violations:

If you believe your employer has violated your MWPCL rights, you can take action. You can file an administrative complaint with the Maryland Department Labor, Licensing, and Regulation. This is a good option if you want a faster and less formal process.

You can also bring a civil lawsuit in court to enforce your MWPCL rights. This option may be more effective if you're seeking larger compensation. An experienced lawyer can advise you on the best approach and help you recover up to three times the amount of wages owed, plus reasonable attorney's fees.

You have up to three years to file a claim for unpaid wages under the MWPCL. This is a generous timeframe, but it's essential to act quickly to avoid missing the deadline.

If a court determines that your employer did not pay wages, you may be able to recover your attorney fees. This can help offset the costs of pursuing your claim.

Here are the options for enforcing MWPCL rights:

The MWPCL has a specific provision that requires employers to pay workers for all hours worked, including overtime, within 10 days of the end of the pay period.

Employers must also keep accurate records of employee hours and wages, which can be used to prevent and investigate MWPCL violations.

The MWPCL has a provision that allows employees to recover up to 3 years of back wages if they can prove that their employer willfully failed to pay them for all hours worked.

Employers who fail to comply with these laws may face fines and penalties, including up to $10,000 for a first-time offense.

Employers in Maryland are required to set a regular pay schedule that is at least every two weeks or twice a month.

Employees must be paid in U.S. currency or by check in U.S. dollars, and wages include all regular pay as well as overtime, bonuses, commissions, and fringe benefits.

Administrative, executive, and professional employees may be paid less frequently than two times a month, but other employees must be paid at least two times a month on regularly scheduled paydays.

Employers may pay wages by cash, check, direct deposit, or credit to a debit card or card account, but employees must consent to direct deposit and be able to choose the financial institution.

Here are the accepted payment methods:

Employers in Maryland are required to set regular pay periods, and the frequency of these payments varies depending on the type of employee.

MWPCL requires that employers pay employees in U.S. currency or by check in U.S. dollars, with a pay schedule that is at least every two weeks or twice a month.

For most employees, this means getting paid at least two times per month on regularly scheduled paydays. However, administrative, executive, and professional employees can be paid less frequently than this.

If the regular payday falls on a non-work day, employers must pay employees on the preceding workday to avoid any delays in payment.

Employers have various options for paying employees under the Maryland Wage Payment and Collection Law (MWPCL). Cash is one option, but it's not the only one.

Employers must pay employees in U.S. currency or by check in U.S. dollars. This means pay cannot be made in goods or some other non-monetary form.

Direct deposit is another option, but it requires employee consent. Employees must be permitted to choose the financial institution with which the deposit is made.

Employers can also pay employees by direct deposit, as long as the employee has given their consent.

The MWPCL allows employers to pay employees by payroll card or debit card, but only if certain conditions are met. The employee must be able to access the funds through withdrawal, purchase, or transfer, and the employer must disclose any applicable fees in writing in at least 12 point font.

Employers must also obtain the employee's authorization before using a payroll card or debit card. This is a key requirement for using these payment methods.

Here are the acceptable methods of payment under the MWPCL: