🇺🇸 MARYLAND STATE LAW – 2026 UPDATE

Maryland Remote Work Laws 2026

Employer Compliance Requirements - Business-Friendly Framework

Last Updated: December 2025
Applicable Period: 2026 tax year and current employment regulations
Key Characteristic: Employers with remote workers physically located in Maryland

Maryland remote work laws and employment regulations guide

Table of Contents

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Overview

Maryland is generally considered a moderately worker-protective state in its approach to employment regulation. According to official state sources, Maryland has implemented comprehensive employment protections that apply to both traditional and remote workers.

General Characteristics (As of December 2025)

According to the Maryland Department of Labor and available official sources:

Category General Framework Notes
State minimum wage (2025) $15.00/hour For most employers and employees
Paid sick leave Required (paid or unpaid based on size) 15+ employees: paid; 14 or fewer: unpaid
State income tax Yes – Progressive rates 2% to 5.75% plus local rates
Meal/rest breaks Not generally mandated by state law For adult employees
Overtime rules Generally follows federal FLSA 1.5x regular rate after 40 hours/week
Workers’ compensation Generally required For employers with 1+ employees

Source: Maryland Department of Labor – https://labor.maryland.gov/

Note: These are general starting points only. Specific applicability depends on many factors including employer size, industry, employee classification, local ordinances, and individual circumstances. Local jurisdictions such as Montgomery County and Howard County have additional requirements. Consult official sources and legal counsel for guidance on specific situations.

Official State Agency Information

The Maryland Department of Labor administers employment laws in Maryland. Additional agencies handle specific areas of employment regulation.

Maryland Department of Labor

Primary Contact Information:

  • Main Office: 500 N. Calvert Street, Suite 401, Baltimore, MD 21202
  • Phone: (410) 230-6020
  • Website: https://labor.maryland.gov/
  • Languages: English, Spanish (varies by division)

Division of Labor and Industry (Wage and Hour):

Note: This agency can provide official interpretations of Maryland employment law. For legal advice on how laws apply to your specific situation, consult a licensed attorney.

Maryland Workers’ Compensation Commission

Contact Information:

  • Main Office: 10 East Baltimore Street, Baltimore, MD 21202
  • Phone: (410) 864-5100 or (800) 492-0479
  • Website: https://www.wcc.state.md.us/
  • File a Claim: Available through website

Source: Maryland Workers’ Compensation Commission – https://www.wcc.state.md.us/

Maryland Comptroller (Tax Authority)

Contact Information:

  • Main Office: Goldstein Treasury Building, Annapolis, MD 21401
  • Taxpayer Services: (410) 260-7980 or (800) MDTAXES
  • Website: https://www.marylandtaxes.gov/

Maryland Commission on Civil Rights (Employment Discrimination)

Contact Information:

  • Main Office: William Donald Schaefer Tower, 6 St. Paul Street, Suite 900, Baltimore, MD 21202
  • Phone: (410) 767-8600 or (800) 637-6247
  • TTY: (410) 333-1737
  • Website: https://mccr.maryland.gov/

Note: Discrimination complaints must generally be filed within 6 months of the alleged act. This is general information only; consult the agency or an attorney for specific guidance.

Major State Employment Statutes

The following statutes are commonly cited in employment matters. This is general information only and does not constitute legal interpretation.

1. Maryland Wage and Hour Law

Statutory Citation: Maryland Code, Labor and Employment Article, Title 3, Subtitle 4
Official Source: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-401

General Provisions (as stated in the statute):

According to the Maryland Code, this law generally addresses:

  • Minimum wage requirements for covered employers
  • Overtime pay requirements for non-exempt employees
  • Payment of wages provisions
  • Recordkeeping requirements

Application to Remote Work:
These provisions generally apply based on where work is physically performed. According to Maryland Department of Labor guidance, workers performing work from a location in Maryland would typically be subject to Maryland wage and hour laws. Specific applicability depends on multiple factors including employee classification and employer coverage. Consult Maryland DOL or legal counsel for guidance on specific circumstances.

Source: Maryland Department of Labor – https://labor.maryland.gov/labor/wages/

2. Maryland Healthy Working Families Act (Paid Sick and Safe Leave)

Statutory Citation: Maryland Code, Labor and Employment Article, §§ 3-1301 through 3-1311
Effective Date: February 11, 2018
Official Source: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-1301

General Overview:

According to the Maryland Department of Labor, this law generally requires:

  • Employers with 15+ employees to provide paid sick and safe leave
  • Employers with 14 or fewer employees to provide unpaid sick and safe leave
  • Accrual at a rate of 1 hour per 30 hours worked, up to 40 hours per year

Coverage: The law generally covers most employees working in Maryland. Exemptions may include certain categories. Employers should consult official agency guidance to determine coverage.

Note: Actual coverage and obligations depend on specific circumstances including employer size calculation, employee eligibility, and permitted uses. Employers should consult Maryland Department of Labor guidance and legal counsel for compliance requirements.

Source: Maryland Department of Labor – https://labor.maryland.gov/paidleave/

3. Maryland Family and Medical Leave Insurance (MD FAMLI)

Statutory Citation: Maryland Code, Labor and Employment Article, Title 8, Subtitle 8
Program Status: Legislation passed; implementation delayed
Current Timeline: Employer contributions expected to begin January 1, 2027; benefits available January 3, 2028 (subject to confirmation)
Official Source: https://mdfamli.com/

General Framework:

According to available information from the Maryland Department of Labor, the MD FAMLI program, when implemented, may generally provide:

  • Up to 12 weeks of paid family and medical leave
  • Wage replacement benefits for qualifying reasons
  • Coverage for certain employees meeting eligibility requirements

Note: This program has not yet been implemented and dates are subject to legislative changes. Regulations are being developed. Employers should monitor official MD FAMLI website for updates and consult legal counsel for preparation and compliance planning.

Source: MD FAMLI Official Website – https://mdfamli.com/

4. Maryland Workers’ Compensation Law

Statutory Citation: Maryland Code, Labor and Employment Article, Title 9
Official Source: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=9-101

General Provisions:

According to Maryland statutes, the workers’ compensation system generally provides:

  • Benefits for employees injured “in the course of employment”
  • Medical treatment coverage
  • Wage replacement benefits
  • Administered by Maryland Workers’ Compensation Commission

Coverage: Generally required for employers with one or more employees. Specific requirements and exemptions exist. Employers should verify their obligations with the Maryland Workers’ Compensation Commission or legal counsel.

Application to Remote Workers: Workers’ compensation law generally applies to covered employment regardless of work location. However, compensability of specific injuries requires fact-specific analysis. See Workers’ Compensation section in Part 4 for detailed information.

Source: Maryland Workers’ Compensation Commission – https://www.wcc.state.md.us/

5. Maryland Equal Employment Opportunity Law

Statutory Citation: Maryland Code, State Government Article, Title 20
Official Source: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gsg&section=20-601

General Framework:

According to Maryland law, discrimination in employment is generally prohibited based on:

  • Race, color, religion, sex, age
  • National origin, marital status, sexual orientation
  • Gender identity, genetic information
  • Disability, military status (among others)

Coverage: Generally applies to employers, labor organizations, and employment agencies. Specific requirements and procedures apply. See Anti-Discrimination Laws section in Part 5 for detailed information.

Source: Maryland Commission on Civil Rights – https://mccr.maryland.gov/

Note: This is general background information. For understanding how these laws apply to your specific situation, consult Maryland Commission on Civil Rights or a licensed employment attorney.

Employee Classification Standards in Maryland

Maryland’s Classification Framework

Maryland uses different tests for different purposes. The most commonly referenced test for Maryland employment law purposes is the “ABC Test.”

The ABC Test in Maryland

Statutory Authority: Maryland Code, Labor and Employment Article, § 8-205 (Unemployment Insurance); § 9-606 (Workers’ Compensation); Workplace Fraud Act
Official Guidance: Maryland Department of Labor – https://labor.maryland.gov/workplace/

General Framework (As Described by Maryland Department of Labor)

According to Maryland Department of Labor guidance, under the ABC Test, a worker is presumed to be an employee unless the hiring entity can demonstrate that all three of the following conditions are met:

Factor A: Freedom from Direction and Control

General Description:
According to official guidance, this factor generally examines whether the individual operates free from direction and control by the hiring entity, both under the contract and in fact.

Considerations that may be relevant (from official guidance):

  • Whether the hiring entity sets work hours and schedule
  • Whether the hiring entity provides detailed instructions on how work is performed
  • Whether the hiring entity provides training
  • Whether the hiring entity supervises the work
  • Whether the individual has autonomy in performing the work

Illustrative Scenario (For General Understanding Only):

Example: A graphic designer enters a contract to create marketing materials. The hiring company specifies exact hours (9 AM-5 PM), requires use of company computers at company premises, provides detailed daily instructions, and closely supervises all work.

General Observation: This scenario may share characteristics commonly associated with an employment relationship because the level of direction and control appears substantial. However, actual classification depends on analysis of all factors and circumstances and requires official determination.

⚠️ Important: This example is purely illustrative and does not constitute a classification determination. Classification requires comprehensive analysis by legal counsel and/or relevant Maryland agencies.

Factor B: Independent Business

General Description:
According to Maryland guidance, this factor generally examines whether the individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as the work performed.

Considerations that may be relevant (from official guidance):

  • Whether the individual operates as a business entity
  • Whether the individual has multiple clients
  • Whether the individual advertises services
  • Whether the individual has established business location
  • Whether the individual has business licenses or registrations
  • Whether the individual holds themselves out to the public as being in business

Illustrative Scenario (For General Understanding Only):

Example 1: An IT consultant has LLC registration, maintains a business website, serves 15 different clients simultaneously, has business liability insurance, sets own rates, and has done this work for 5 years.

General Observation: This scenario may share characteristics commonly associated with independent contractor status because multiple indicators of an independent business appear present. However, satisfaction of Factor B alone is insufficient for independent contractor classification – all three ABC factors must be met.

Example 2: A web developer works exclusively for one company for two years, does not advertise services, has no other clients, and does not operate under a business entity.

General Observation: This scenario may not satisfy Factor B based on general principles, as indicators of an independently established business appear limited. Actual determination depends on complete factual analysis.

⚠️ Critical Reminder: These are illustrative examples only for general educational purposes. They do not constitute legal determinations or predictions. Consult legal counsel for analysis of specific situations.

Factor C: Usual Course of Business or Off-Site Work

General Description:
According to Maryland statute, this factor is generally satisfied if either:

  1. The work is outside the usual course of business of the person for whom it is performed, OR
  2. The work is performed outside any place of business of the person for whom it is performed

Considerations that may be relevant (from official guidance):

  • Nature of the hiring entity’s core business
  • Whether the work is integral to the hiring entity’s business operations
  • Whether the work is performed at the hiring entity’s location
  • Whether the work is performed at the individual’s own location

Illustrative Scenarios (For General Understanding Only):

Example 1: A restaurant hires an attorney to review lease agreements.

General Observation: This scenario may satisfy Factor C because legal services are generally outside the usual course of a restaurant’s business operations. However, the attorney would still need to satisfy Factors A and B for independent contractor classification.

Example 2: A restaurant hires a cook to prepare meals in the restaurant kitchen.

General Observation: This scenario may not satisfy Factor C because cooking is within the usual course of a restaurant’s business, and work is performed at the restaurant’s location. This suggests Factor C is not met, though complete analysis would be required.

Example 3: A software company hires a programmer who works entirely from their own home office.

General Observation: Under the “OR” structure of Factor C, work performed outside any place of business of the hiring entity may potentially satisfy this factor. However, if software programming is the usual course of the company’s business (first prong), then satisfying the location prong (second) may not be sufficient unless the test is structured as an “or” test. Maryland’s specific interpretation should be confirmed with official guidance. Additionally, Factors A and B must still be satisfied.

⚠️ Important: The interaction of the two prongs of Factor C can be complex. Employers should consult Maryland Department of Labor or legal counsel for guidance on how this factor applies to specific situations.

Application to Remote Workers

For remote workers, classification analysis may involve additional considerations:

  • Physical work location: Whether work performed from home affects Factor C analysis
  • Level of control: How direction and control are exercised in remote/virtual environments
  • Business independence: Whether remote work arrangement suggests independent business or integrated employment

General Principle: According to legal guidance, remote work location alone does not determine classification. The complete factual circumstances under all ABC factors must be evaluated.

Note: Classification of remote workers should be reviewed with legal counsel familiar with Maryland law and your specific circumstances, as well as federal classification standards which may differ.

Maryland Workplace Fraud Act

Statutory Authority: Maryland Code, Labor and Employment Article, §§ 3-901 through 3-910
Industries Covered: Construction and landscaping industries
Official Source: https://labor.maryland.gov/workplace/

General Framework:

According to Maryland Department of Labor, the Workplace Fraud Act:

  • Applies the ABC Test to construction and landscaping industries
  • Requires written notice of classification to workers
  • Imposes penalties for misclassification
  • Provides enforcement mechanisms

Penalties (as described in statute):

According to official sources, employers found to have misclassified workers may face:

  • Requirement to pay restitution and come into compliance (45-day cure period)
  • Civil penalties up to $1,000 per misclassified worker (unintentional)
  • Civil penalties up to $5,000 per misclassified worker (knowing misclassification)
  • Penalties may be doubled for repeat violations

Source: Maryland Department of Labor – https://labor.maryland.gov/workplace/

Note: These are potential consequences described in statute. Actual penalties depend on specific circumstances. This is not legal advice. Consult legal counsel for guidance on compliance.

Federal Classification Standards

In addition to Maryland’s ABC Test, federal agencies use different standards:

IRS (Tax Purposes):
Uses Common Law Test focusing on behavioral control, financial control, and relationship type.

U.S. Department of Labor (FLSA):
Uses economic realities test. New regulations effective 2024 consider multiple factors.

⚠️ Critical: A worker may be classified differently under state versus federal law. Employers must comply with whichever classification standard provides greater worker protections. Consult both federal and state guidance, as well as tax and legal professionals.

Consequences of Misclassification

According to Maryland Department of Labor and other official sources, potential consequences of worker misclassification may include:

For Employers:

  • Potential liability for back payment of wages, overtime, and benefits
  • Possible assessment of unemployment insurance taxes
  • Potential workers’ compensation premium adjustments and penalties
  • Civil penalties under Workplace Fraud Act (if construction/landscaping)
  • Potential penalties and interest from Maryland Comptroller
  • Federal tax consequences (IRS penalties and back taxes)
  • Possible liability under wage and hour violations

For Workers:

  • May affect access to unemployment insurance benefits
  • May affect workers’ compensation coverage
  • May affect wage and hour protections
  • May affect leave benefit eligibility and protections
  • May affect eligibility for employee benefits

Note: The specific consequences depend on many factors including industry, intent, duration of misclassification, and which agencies become involved. This is general information only based on publicly available sources. Consult legal counsel to understand potential exposure in your specific situation.

How to Seek Classification Guidance

Classification questions should be addressed through:

Maryland Department of Labor – Worker Classification Protection Unit:

Employment Attorney:

  • Consult an attorney licensed in Maryland with expertise in employment law

Tax Professional:

  • Consult a CPA or enrolled agent familiar with Maryland and federal employment tax law

IRS (Federal Tax Classification):

Maryland Comptroller (State Tax Questions):

  • Taxpayer Services: (410) 260-7980 or (800) MDTAXES

Minimum Wage Information for Maryland

Current Statewide Rate Information

According to the Maryland Department of Labor (source: https://labor.maryland.gov/labor/wages/), the Maryland state minimum wage as of January 1, 2025 is generally:

Effective Date Rate Employer Size Notes
January 1, 2025 $15.00/hour All employers Unified rate as of 2024 Fair Wage Act

Source: Maryland Department of Labor – https://labor.maryland.gov/labor/wages/wagehrfacts.shtml

Legislative Background:
According to available information, the Fair Wage Act of 2023 accelerated Maryland’s minimum wage increases, establishing $15.00 per hour for all employers starting January 1, 2024 (originally 2025 for large employers and 2026 for small employers).

Note: As of December 2025, no automatic indexing or scheduled increases beyond $15.00 have been enacted in state law. However, a ballot initiative proposal to increase minimum wage to $25.00 by 2030 is being discussed. Employers should monitor legislative developments and verify current law.

Application to Remote Workers

According to general legal principles and Maryland Department of Labor guidance:

  • Minimum wage typically applies based on where work is physically performed
  • A worker performing work from a location in Maryland would generally be subject to Maryland minimum wage
  • Employer location is generally not the determining factor for minimum wage applicability

Example for Context (Illustrative Only):
A worker employed by a Virginia company but working from their home in Baltimore would generally be subject to Maryland’s minimum wage requirements, not Virginia’s rate.

However, specific situations may vary. Employers with remote workers should consult Maryland DOL or legal counsel for guidance on particular circumstances, especially for workers who split time between multiple states.

Local Minimum Wages in Maryland

Some jurisdictions in Maryland have enacted local minimum wages that exceed the state rate. According to available official information:

Montgomery County Minimum Wage

Official Source: Montgomery County Office of Human Rights – https://www.montgomerycountymd.gov/humanrights/min-wage.html

2025 Rates (Effective July 1, 2025):
Employer Size Rate Notes
51+ employees (large) $17.65/hour Adjusted annually for inflation
11–50 employees (mid-sized) $16.00/hour Adjusted annually for inflation
10 or fewer employees (small) $15.50/hour Adjusted annually for inflation

Note: Montgomery County rates are indexed to the Consumer Price Index for the Washington, D.C.-Arlington-Alexandria area and adjust annually on July 1.

General Applicability:
According to Montgomery County ordinances, these rates generally apply to employers operating in Montgomery County and to work performed in the county.

Howard County Minimum Wage

Official Source: Howard County Government – https://www.howardcountymd.gov/finance/minimum-wage

2025–2026 Rates:
Effective Date Employer Size Rate Notes
January 1, 2025 15+ employees $15.00/hour Aligns with state rate
January 1, 2025 14 or fewer employees State rate applies $15.00/hour currently
January 1, 2026 15+ employees $16.00/hour Scheduled increase
January 1, 2026 14 or fewer employees $15.50/hour Scheduled increase

Future Adjustments:
Starting January 2027, Howard County’s minimum wage is scheduled to be adjusted annually based on the Consumer Price Index for All Urban Consumers (CPI-U).

General Applicability:
According to Howard County ordinances, these rates generally apply to employers operating and doing business in Howard County.

⚠️ Important: For workers in jurisdictions with local minimum wages, the higher rate generally applies. Remote workers performing work from locations in Montgomery County or Howard County would generally be subject to those jurisdictions’ rates. Employers should verify requirements with local authorities and consult legal counsel for specific situations involving multi-jurisdictional work arrangements.

Variations and Exemptions

According to Maryland law and regulations, certain variations or exemptions may apply in some circumstances:

Youth Employees (Under Age 18)

Framework (from statute):
Maryland law may allow payment of 85% of the state minimum wage to employees under 18 years of age during their first six months of employment at an amusement or recreational establishment.

Current Calculation (Illustrative):
85% of $15.00 = $12.75/hour

Note: Specific conditions and limitations apply. Employers should verify applicability with Maryland Department of Labor. This is not an automatic exemption and requires meeting statutory criteria.

Tipped Employees

Framework (from statute):

According to Maryland Code, Labor and Employment Article § 3-419:

  • Maryland allows a “tip credit” against minimum wage obligations
  • Employers may pay tipped employees a cash wage of $3.63 per hour
  • Cash wage plus tips must equal or exceed the applicable minimum wage
  • If tips are insufficient, employer must make up the difference

Definition: A “tipped employee” is generally defined as one who customarily and regularly receives more than $30 per month in tips.

2025 Requirement:
$3.63 (cash wage) + tips must equal at least $15.00/hour (or higher local rate if applicable)

Special Requirements:
According to regulations, employers utilizing tip credit must:

  • Inform employees about tip credit provisions
  • Ensure employees retain all tips (tip pooling may be permitted under certain conditions)
  • Keep accurate records of tips and cash wages
  • Comply with additional requirements (consult DOL guidance)

Montgomery County Special Rule:
According to Montgomery County ordinances, tipped employees must be paid at least the full Montgomery County minimum wage (not state tipped minimum) for sick and safe leave hours used.

Note: Tip credit rules are complex and heavily regulated. Violations can result in liability for full minimum wage plus penalties. Employers should consult Maryland Department of Labor guidance and legal counsel before implementing tip credit arrangements.

Source: Maryland Department of Labor – https://labor.maryland.gov/labor/wages/

Other Potential Exemptions

According to Maryland statutes and regulations, other categories that may have different wage requirements or exemptions include:

  • Certain agricultural workers: Different rules may apply
  • Learners and apprentices: Under limited circumstances with proper authorization
  • Workers with disabilities: Under federal certificates in limited circumstances (increasingly restricted)
  • Executive, administrative, professional employees: May be exempt from minimum wage if they meet exemption criteria (see Overtime section)

Note: Exemptions are narrowly construed and fact-specific. Employers should not assume an exemption applies without verification from official sources and legal counsel.

Comparison Information (For Reference Only)
Jurisdiction 2025 Rate 2026 Scheduled Notes
Maryland (State) $15.00 No scheduled increase Unified rate for all
Montgomery County (51+) $17.65 (July 2025) CPI adjustment (July 2026) Indexed annually
Howard County (15+) $15.00 $16.00 (Jan 2026) Scheduled increase
District of Columbia $17.50 (July 2025) CPI adjustment For comparison
Virginia $12.41 No scheduled increase For comparison
Pennsylvania $7.25 (federal) Legislative proposals For comparison

Note: This comparison is for general reference only. Each jurisdiction’s laws apply based on where work is performed. Rates change periodically. Always verify current rates with official sources.

Resources for Current Minimum Wage Information

Maryland Department of Labor:

Montgomery County Office of Human Rights:

Howard County Government:

U.S. Department of Labor Wage and Hour Division:

Overtime and Break Regulations in Maryland

A. Overtime Standards

Governing Framework

Federal and State Relationship:
Maryland generally follows the federal Fair Labor Standards Act (FLSA) for overtime requirements, with some additional state-specific provisions.

Statutory Authority:

  • Federal: Fair Labor Standards Act (FLSA), 29 U.S.C. § 207
  • Maryland: Maryland Code, Labor and Employment Article, § 3-415, § 3-420
  • Official Source: Maryland Department of Labor – https://labor.maryland.gov/labor/wages/

General Overtime Threshold

According to Maryland and federal law:

Basic Requirement:

  • Generally triggered after 40 hours worked in a workweek
  • Rate generally required: 1.5 times the employee’s regular rate of pay
  • No daily overtime requirement in Maryland (unlike some states like California)

Workweek Definition:
According to regulations, a “workweek” is generally a fixed and regularly recurring period of 168 hours (seven consecutive 24-hour periods).

Special Overtime Thresholds for Certain Industries

According to Maryland Code § 3-420, some industries have different overtime thresholds:

| Industry/Category | Overtime Threshold | Notes | |—|—|—|—| | Most employees | After 40 hours/week | Standard rule | | Bowling establishments | After 48 hours/week | Industry-specific exception | | On-premise care facilities (non-hospital) | After 48 hours/week | For sick, aged, or disabled individuals | | Agricultural workers | After 60 hours/week | Specific to agriculture |

Note: These are general frameworks from statute. Specific applicability and exemptions should be verified with Maryland Department of Labor and legal counsel.

Source: Maryland Code, Labor and Employment Article § 3-420

Application to Remote Workers

General Principle:
Overtime regulations typically apply based on the nature of the work and employment relationship, not work location. According to legal guidance, remote workers performing non-exempt work would generally be subject to the same overtime requirements as on-site workers.

However, specific applicability depends on:

  • Whether the employee is properly classified as exempt or non-exempt
  • Accurate tracking of all hours worked
  • Determination of what constitutes compensable time for remote workers

Complexity for Remote Workers:
Determining compensable time for remote workers can involve additional considerations such as:

  • After-hours email responses and communications
  • Time spent in virtual meetings outside regular hours
  • On-call time while at home
  • Other activities that may or may not be “hours worked”

These determinations are fact-specific and may require guidance from wage-hour counsel.

B. Overtime Exemptions

Maryland recognizes certain exemptions from overtime requirements. The most common are the “white collar” exemptions.

Executive, Administrative, and Professional (EAP) Exemptions

To potentially qualify as exempt from overtime, employees generally must meet tests related to:

  1. Salary Basis Test: Paid a predetermined salary not subject to reduction based on quality or quantity of work
  2. Salary Level Test: Meets minimum salary threshold
  3. Duties Test: Performs exempt-level duties as defined by regulations

Salary Thresholds (2025-2026)

According to federal regulations (which Maryland generally follows for these exemptions):

Federal FLSA Thresholds:

  • Standard exemption: $844 per week ($43,888 annually) as of July 1, 2024
  • Highly compensated employee: $132,964 annually (as of January 1, 2025)

Note: Federal regulations under the FLSA establish these thresholds. Maryland has not enacted a separate state salary threshold for these exemptions but generally applies federal standards. However, Maryland does not recognize the federal “highly compensated employee” exemption for state law purposes.

Critical Distinction:
According to Maryland guidance, Maryland does not recognize the federal “highly compensated employee” (HCE) exemption. This means that in Maryland, even employees earning above the HCE threshold must meet both the salary basis test and the full duties test to be exempt from state overtime requirements.

Source:

Duties Tests (General Framework)

The specific duties an exempt employee must perform depend on the category:

Executive Exemption (General Criteria):

According to federal regulations, an executive employee’s primary duty generally includes:

  • Management of the enterprise or a recognized department/subdivision
  • Customarily and regularly directs work of two or more employees
  • Authority to hire/fire or particular weight given to recommendations

Administrative Exemption (General Criteria):

According to federal regulations, an administrative employee’s primary duty generally includes:

  • Office or non-manual work directly related to management or general business operations
  • Exercise of discretion and independent judgment on significant matters

Professional Exemption (General Criteria):

According to federal regulations, a professional employee’s primary duty generally includes:

  • Work requiring advanced knowledge in a field of science or learning
  • Advanced knowledge customarily acquired through prolonged specialized intellectual instruction (learned professional)
  • OR work requiring invention, imagination, originality, or talent in a recognized artistic or creative field (creative professional)

⚠️ Important: Job title alone does not determine exemption status. Meeting the salary threshold alone is insufficient. All three tests (salary basis, salary level, and duties) must be satisfied. Employers should consult DOL guidance and legal counsel for classification decisions.

Source: Federal regulations 29 C.F.R. Part 541; Maryland Department of Labor guidance

Computer Professional Exemption

Maryland and federal law also recognize a computer professional exemption with special provisions:

Compensation Options:

  • May be paid on salary or hourly basis
  • If hourly: Must be paid at least $27.63 per hour (federal rate as of 2024)
  • If salary: Must meet standard salary threshold

Duties Requirements:
According to regulations, must primarily perform:

  • Application of systems analysis techniques and procedures
  • Design, development, documentation, analysis, creation, testing, or modification of computer systems or programs
  • Design, documentation, testing, creation, or modification of computer programs related to machine operating systems

Note: Not all IT workers qualify. Help desk, support technicians, and other roles may not meet the duties test. Consult detailed federal and state guidance.

Other Common Exemptions

According to Maryland and federal law, other categories that may be exempt from overtime include:

  • Outside sales employees: Primary duty is making sales away from employer’s place of business
  • Certain commissioned employees: Retail or service establishments under specific conditions
  • Transportation workers: Certain motor carrier employees (DOT-regulated)
  • Agricultural workers: Under certain conditions

Note: Each exemption has specific requirements. Exemptions are narrowly interpreted. Consult official guidance and legal counsel before classifying employees as exempt.

C. Meal and Rest Break Requirements

Maryland’s Framework

Breaks for Adult Employees:

According to Maryland Department of Labor (source: https://labor.maryland.gov/labor/wages/), Maryland does not have state laws requiring employers to provide meal or rest breaks for adult employees.

What this generally means:

  • Employers are not required by Maryland law to provide breaks to adult workers
  • If employers choose to provide breaks, federal rules regarding compensation apply
  • Other leave protections exist under different laws (sick leave, etc.)

Federal Break Standards (When Employer Provides Breaks Voluntarily)

If an employer chooses to provide breaks, the federal Fair Labor Standards Act (FLSA) provides:

Short Rest Breaks (5-20 minutes):

  • Generally considered compensable work time
  • Must be included in overtime calculations
  • Employee must be paid for this time

Bona Fide Meal Periods (30+ minutes):

  • May be unpaid if:
    • Duration is at least 30 minutes, and
    • Employee is completely relieved of duties, and
    • Employee is free to leave the workstation

Note: If an employee works during a meal break (e.g., answering phones, monitoring equipment), the time generally must be compensated as hours worked.

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/fact-sheets/22-flsa-hours-worked

Breaks for Minors (Under Age 18)

Maryland Requirement:

According to Maryland Code, Labor and Employment Article § 3-710, employers generally must provide minors with:

  • 30-minute break for every 5 consecutive hours of work (for retail occupations)

Note: Additional restrictions and requirements apply to employment of minors. Employers should consult Maryland Department of Labor guidance on child labor laws.

Remote Worker Considerations

Challenges for Remote Work:

For remote workers, break compliance may present unique challenges:

  • Verifying that breaks are actually taken
  • Ensuring workers do not perform work during unpaid meal periods
  • Documenting break times
  • Handling interruptions during breaks (e.g., urgent work calls/emails)

Best Practices (General Recommendations):

The following are general considerations compiled from various sources. They do not constitute legal requirements:

  • Consider implementing clear policies on break expectations for remote workers
  • Consider using time-tracking systems that account for breaks
  • Consider training managers and employees on break requirements
  • Consider regular reminders about taking breaks
  • Consider addressing how emergencies during breaks are handled

Note: These are recommendations only and may not be suitable for all situations. Employers should develop break policies with guidance from legal counsel, especially for remote workforce management.

Resources and Guidance

For specific questions about overtime and breaks:

Maryland Department of Labor:

U.S. Department of Labor Wage and Hour Division:

Employment Attorney or HR Counsel:
Consult licensed professionals for policy development and classification guidance

⚠️ CRITICAL REMINDER: Wage and hour compliance is highly fact-specific and technical. Violations can result in significant back pay liability, liquidated damages, penalties, and attorneys’ fees. This information is for general background only. Employers should obtain professional guidance on:

  • Employee classification (exempt vs. non-exempt)
  • Time tracking systems and requirements
  • Break compliance for remote workers
  • Compensable time determinations
  • Recordkeeping requirements

Misclassification and wage violations can result in substantial liability. Always consult legal counsel for compliance matters.

Final Pay Requirements

General Framework

According to Maryland Code, Labor and Employment Article § 3-505, employers generally must pay final wages by specific deadlines.

Termination (Involuntary):

  • Final wages generally due on the next regular payday after termination

Resignation (Voluntary):

  • Final wages generally due on the next regular payday after resignation

Definition of Wages:
According to statute, final pay generally must include all earned wages, including:

  • Regular wages for all hours worked
  • Earned overtime
  • Earned commissions (if applicable)
  • Other compensation earned under employment agreement

Note: Different rules may apply to accrued vacation or PTO depending on company policy. Maryland law does not generally require payout of accrued vacation unless required by policy or agreement. Employers should consult legal counsel on their specific policies.

Source: Maryland Code, Labor and Employment Article § 3-505

Maryland Paid Sick and Safe Leave

Legal Framework

Statutory Authority: Maryland Code, Labor and Employment Article, §§ 3-1301 through 3-1311
Common Name: Maryland Healthy Working Families Act
Effective Date: February 11, 2018
Administering Agency: Maryland Department of Labor
Official Resource: https://labor.maryland.gov/paidleave/

General Program Description

According to the Maryland Department of Labor, the Maryland Healthy Working Families Act generally:

  • Requires employers with 15 or more employees to provide paid sick and safe leave
  • Requires employers with 14 or fewer employees to provide unpaid sick and safe leave
  • Mandates accrual at rate of 1 hour per 30 hours worked
  • Caps annual accrual at 40 hours
  • Permits various permitted uses for health and safety reasons

Note: Whether leave must be paid or unpaid depends on employer size calculation based on the average monthly number of employees during the immediately preceding year.

Coverage Framework

Employer Coverage

According to Maryland Department of Labor guidance, the law generally applies to:

Covered Employers:

  • Employers who employ employees who work in Maryland
  • Employer size determined by calculating average monthly number of employees during immediately preceding year
  • Count includes full-time, part-time, temporary, and seasonal employees

Employer Size Determination:
To determine whether an employer must provide paid or unpaid leave:

  1. Calculate average monthly number of employees during previous year
  2. If average is 15 or more → paid leave required
  3. If average is 14 or fewer → unpaid leave required

Note: Specific calculation methods and transition year rules apply. Employers should consult Maryland DOL guidance or legal counsel to determine size classification.

Employee Eligibility

According to Maryland law, the following categories generally are covered:

Generally Covered:

  • Employees who work in Maryland
  • Full-time employees
  • Part-time employees
  • Temporary employees
  • Seasonal employees

Generally Not Covered (Exemptions): According to statute § 3-1302, exemptions may include:

  • Independent contractors (if properly classified)
  • Employees of the federal government
  • Employees under age 18
  • Employees who work for employer fewer than 106 calendar days per year (“per diem health care employees” under certain conditions)
  • Certain employees subject to collective bargaining agreements that waive the requirements

Remote Workers:
Generally subject to the same rules as on-site workers when performing work from locations in Maryland. Employees who do not work in Maryland generally are not covered by Maryland’s sick leave law.

Note: Coverage determinations can be complex. Employers should consult Maryland Department of Labor or legal counsel regarding specific employee categories.

Source: Maryland Code § 3-1302, § 3-1303

Accrual Provisions

According to Maryland statute and regulations, the general accrual framework includes:

Accrual Rate

Standard Rate:

  • 1 hour of earned sick and safe leave for every 30 hours worked
  • Maximum annual accrual: 40 hours per year
  • Maximum total accrual at any time: 64 hours (unless employer uses front-loading)

When Accrual Begins

According to statute § 3-1304:

  • For employees hired before February 11, 2018: accrual began February 11, 2018
  • For employees hired after: accrual begins on date employee begins employment

Accrual Exclusions

An employee is not entitled to earn sick and safe leave during:

According to § 3-1304(b):

  • A two-week pay period in which the employee worked fewer than 24 hours total
  • A one-week pay period if the employee worked fewer than a combined total of 24 hours in the current and immediately preceding pay period
  • A pay period in which the employee is paid twice per month and worked fewer than 26 hours in that pay period

Exempt (Salaried) Employees

According to § 3-1304(e):

  • Employees exempt from FLSA overtime requirements are assumed to work 40 hours per workweek for accrual purposes
  • Unless normal workweek is less than 40 hours, in which case the actual normal workweek applies

Front-Loading Option

Alternative Method:
According to § 3-1304(d), employers may choose to award the full 40 hours of earned sick and safe leave at the beginning of each year rather than requiring accrual throughout the year.

Impact on Carryover:
If employer uses front-loading method:

  • Employer is not required to allow carryover of unused leave to following year
  • Employer must still provide full 40 hours at start of each new benefit year

Example Calculation (Illustrative Only):

Accrual Method:

  • Employee works 30 hours/week × 52 weeks = 1,560 hours/year
  • Accrual: 1,560 hours ÷ 30 = 52 hours potential
  • Capped at 40 hours annual accrual
  • May carry over up to 40 hours (subject to 64-hour total cap)

Front-Loading Method:

  • Employee receives 40 hours on January 1
  • No carryover required
  • Receives another 40 hours on next January 1

⚠️ Note: These are simplified examples for general understanding only. Actual accrual calculations depend on specific work schedules, pay periods, and employer policies. Consult Maryland DOL guidance for detailed calculation requirements.

Source: Maryland Code § 3-1304

Usage Provisions

Permitted Uses

According to Maryland statute § 3-1306, earned sick and safe leave may generally be used for:

Health-Related Uses:

  1. To care for or treat the employee’s mental or physical illness, injury, or condition
  2. To obtain preventive medical care for the employee or employee’s family member
  3. To care for a family member with a mental or physical illness, injury, or condition
  4. For maternity or paternity leave (care for child after birth, adoption, or foster placement)

Safety-Related Uses: 5. For absence due to domestic violence, sexual assault, or stalking affecting employee or family member, including:

  • Medical attention
  • Victim services
  • Legal services or proceedings
  • Relocation
  • Other necessary services

Definition of Family Member:
According to § 3-1301(c), “family member” generally includes:

  • Child (including biological, adopted, foster, step-child, legal ward)
  • Spouse
  • Parent (including biological, adoptive, foster, step-parent, legal guardian)
  • Grandparent
  • Grandchild
  • Sibling

Note: Specific definitions and limitations apply. Employers should consult the statute and official guidance for complete definitions and permitted uses.

Source: Maryland Code § 3-1306, § 3-1301(c)

Notice Requirements

According to § 3-1307, general notice provisions include:

Employee Notice to Employer:

Foreseeable Leave:

  • Employee should provide notice as soon as practicable (up to 7 days’ advance notice if leave need is foreseeable)

Unforeseeable Leave:

  • Employee should provide notice as soon as practicable after need for leave arises

Documentation

According to § 3-1307(b), employers may require reasonable documentation if:

  • Employee uses more than 2 consecutive scheduled shifts of earned sick and safe leave

Limitations on Documentation Requests:

  • Employer generally cannot require disclosure of details of health condition or details of domestic violence, sexual assault, or stalking
  • Documentation may include certification from health care provider or documentation from victim services provider or legal proceedings
  • Employer cannot require documentation in manner that violates federal or state privacy laws

Note: Documentation requirements must be reasonable and not unduly burdensome. Employers should consult legal counsel on appropriate documentation policies that comply with privacy laws.

Use Restrictions

According to statute, employers have certain options for restricting use:

Waiting Period:

  • Employers may prohibit employees from using earned sick and safe leave during the first 106 calendar days of employment (§ 3-1304(c))

Increment of Use:

  • Employers may require use in the smallest increment that the employer’s payroll system uses
  • However, increment cannot be greater than 4 hours (§ 3-1305(d))

Annual Use Limitation:

  • While employees can accrue up to 64 hours total, employers are not required to allow employees to use more than 64 hours in a calendar year

Source: Maryland Code §§ 3-1304, 3-1305

Carryover Provisions

According to § 3-1304(g), general carryover rules include:

Standard Rule:

  • Employees may carry over unused earned sick and safe leave to the following year
  • Maximum carryover: 40 hours
  • Total accrual at any time capped at 64 hours

Exception – Front-Loading:

  • If employer front-loads full 40 hours at beginning of year, employer is not required to permit carryover

Example (Illustrative Only):

  • Employee accrues 40 hours in Year 1, uses 20 hours
  • Employee may carry over remaining 20 hours to Year 2
  • In Year 2, employee continues accruing (1 hour per 30 worked)
  • Once employee reaches 64 total hours, accrual stops until employee uses leave
  • Employee can use up to 64 hours in Year 2

Employer Obligations

According to Maryland statute and regulations, employers generally must:

Notice and Posting:

  • Provide written notice of sick and safe leave rights to employees at time of hiring
  • Post notice in the workplace in conspicuous location
  • Notices must be in English and Spanish
  • Use official notice forms provided by Maryland Department of Labor

Recordkeeping:

  • Maintain records of each employee’s accrued and used sick and safe leave
  • Records must be maintained for at least 3 years

Pay Statement Information:

  • Provide information about available leave on pay statements or through readily accessible system

Prohibition on Retaliation:

  • Cannot discriminate or retaliate against employees for using or requesting sick and safe leave
  • Cannot require employee to find replacement worker as condition of using leave

Source: Maryland Code §§ 3-1308, 3-1309, 3-1310

Official Forms and Guidance:
Maryland Department of Labor provides model policies and notice templates at https://labor.maryland.gov/paidleave/

Relationship with Other Leave

PTO Policies

According to Maryland guidance:

  • Employers may use a paid time off (PTO) policy that provides at least as much leave and allows use for the same purposes
  • PTO policy must meet or exceed all requirements of Maryland law
  • Cannot be more restrictive than statutory requirements

Other Maryland Leave Laws

Earned sick and safe leave is separate from:

  • Maryland Family and Medical Leave Insurance (when implemented)
  • Federal Family and Medical Leave Act (FMLA)
  • Workers’ compensation temporary disability
  • Short-term disability insurance

Note: Leaves may run concurrently in some circumstances. Coordination of multiple leave entitlements can be complex. Employers should consult legal counsel for policy development.

Enforcement and Penalties

According to statute § 3-1311, potential consequences for violations may include:

For Employees:

  • Right to file complaint with Maryland Commissioner of Labor and Industry
  • Potential remedies may include back payment of leave, damages, other relief

For Employers:

  • Potential requirement to provide unlawfully withheld leave
  • Possible civil penalties and damages
  • Potential criminal penalties for knowing violations
  • Possible requirement to pay complainant’s reasonable attorney’s fees and costs

Complaint Deadline:
Generally must be filed within 3 years of alleged violation

Note: Specific enforcement procedures and potential penalties depend on circumstances. This is general information based on statute. Employers facing complaints should consult legal counsel immediately.

Special Considerations for Remote Workers

For remote workers in Maryland:

General Applicability:

  • Maryland’s sick and safe leave law generally applies to employees working in Maryland
  • Physical location of employer typically not determinative
  • Remote worker performing work from Maryland location would generally be covered

Challenges:

  • Tracking hours worked for accrual purposes
  • Coordinating leave across multiple state laws for multi-state remote workforce
  • Determining “work in Maryland” for workers who split time between states

Note: Employers with remote workers in multiple states face complex compliance obligations. Professional guidance strongly recommended for multi-state workforce management.

Montgomery County Paid Sick and Safe Leave

⚠️ Note: Montgomery County has its own paid sick and safe leave ordinance with requirements that differ from and exceed state law.

Key Differences (General Overview):

According to Montgomery County Code Chapter 27, Article XIII:

  • Applies to employers with 1 or more employees (no size exemption)
  • Different accrual amounts for different employer sizes
  • Includes both paid and unpaid leave components
  • Broader uses including bereavement leave

Large Employers (5+ employees):

  • Up to 56 hours of paid leave annually

Small Employers (1-4 employees):

  • Up to 32 hours paid + 24 hours unpaid annually

Source: Montgomery County Office of Human Rights – https://www.montgomerycountymd.gov/humanrights/

Note: Employers operating in Montgomery County must comply with both state and county requirements, applying whichever provides greater benefits to employees. This is a complex area requiring detailed analysis. Consult legal counsel for Montgomery County compliance.

Resources for Sick Leave Compliance

Maryland Department of Labor:

Montgomery County (if applicable):

Legal Counsel:

  • Employment attorney licensed in Maryland
  • HR compliance consultant with Maryland expertise

Maryland Family and Medical Leave Insurance (MD FAMLI)

Legal Framework

Statutory Authority: Maryland Code, Labor and Employment Article, Title 8, Subtitle 8
Program Status: Legislation enacted; implementation delayed
Official Website: https://mdfamli.com/
Administering Agency: Maryland Department of Labor (when implemented)

Current Implementation Timeline

According to information available from Maryland sources as of December 2025:

Expected Timeline:

  • January 1, 2027: Employer and employee contributions expected to begin
  • January 3, 2028: Benefits expected to become available to covered individuals

⚠️ Note: These dates reflect information available as of December 2025. Maryland House Bill 102 (2025) extended the original implementation timeline. Dates are subject to confirmation by legislation and regulation. Employers should monitor the official MD FAMLI website and Maryland Department of Labor for updates.

Source: MD FAMLI – https://mdfamli.com/ ; Maryland Department of Labor

General Program Description (When Implemented)

According to the enacted legislation, when implemented, MD FAMLI is expected to generally provide:

Leave Duration:

  • Up to 12 weeks of paid family and medical leave per benefit year
  • Additional weeks may be available for pregnancy complications
  • Leave may be taken intermittently or continuously depending on reason

Benefit Amount:
According to statute, benefits are expected to be calculated as a percentage of the covered individual’s average weekly wage, with progressive replacement rates favoring lower earners.

Funding:
Program expected to be funded through:

  • Payroll contributions from employers and employees
  • Contribution rates to be determined by regulation (not yet finalized)
  • Self-employed individuals may opt into coverage

Expected Coverage (When Implemented)

Covered Individuals

According to the legislation, covered individuals are expected to generally include:

  • Employees working in Maryland
  • Self-employed individuals who opt in
  • Individuals meeting earnings thresholds (to be specified in regulations)

Exclusions may include:

  • Federal employees
  • Certain categories to be specified in regulations

Qualifying Reasons for Leave

According to enacted legislation, covered individuals may be eligible to use MD FAMLI benefits for:

Family Leave:

  1. To bond with a child during first year after birth, adoption, or foster placement
  2. To care for a family member with a serious health condition
  3. To care for a military service member with serious injury or illness

Medical Leave: 4. For covered individual’s own serious health condition (including pregnancy/childbirth complications)

Military Exigency: 5. For certain qualifying exigencies related to family member’s military service

Note: Specific definitions and qualifying criteria will be established in regulations. “Family member” definitions and “serious health condition” criteria to be specified.

Relationship with Other Leave Laws

According to general understanding of the legislation:

Federal FMLA:

  • MD FAMLI is expected to coordinate with federal FMLA
  • May run concurrently in some circumstances
  • FMLA provides job protection; MD FAMLI provides wage replacement

Maryland Paid Sick Leave:

  • Separate from Healthy Working Families Act requirements
  • Different eligibility, uses, and benefits

Employer-Provided Leave:

  • Employers may have private plans that meet or exceed MD FAMLI requirements (if approved)
  • Details on private plan approval process to be established in regulations

Employer Obligations (Expected)

When MD FAMLI is implemented, employers are expected to have obligations including:

Contributions:

  • Remit required payroll contributions to MD FAMLI fund
  • Withhold employee portion of contributions (if cost-sharing applies)

Notice Requirements:

  • Provide notices to employees about MD FAMLI rights and benefits
  • Post workplace notices

Recordkeeping:

  • Maintain required payroll and leave records

Coordination:

  • Coordinate MD FAMLI benefits with employer-provided benefits and other leave laws

Note: Specific requirements will be established in regulations. Employers should consult MD FAMLI guidance and legal counsel as implementation approaches.

Job Protection Provisions

According to the legislation, job protection provisions are expected to include:

  • Right to return to same or equivalent position after leave
  • Continuation of health benefits during leave (under certain conditions)
  • Prohibition on retaliation or discrimination for using MD FAMLI benefits

Note: Specific job protection details to be clarified in regulations. Interaction with existing job protection laws (FMLA, etc.) to be addressed.

Preparation for Employers

While MD FAMLI has not yet been implemented, employers may wish to consider:

Administrative Preparation:

  • Monitoring MD FAMLI website for regulation updates
  • Reviewing payroll systems for contribution collection capability
  • Evaluating existing leave policies for coordination with MD FAMLI

Policy Considerations:

  • How MD FAMLI will interact with current leave policies
  • Whether to pursue private plan approval (when available)
  • Communication strategy for employees

Professional Consultation:

  • Consulting with legal counsel on compliance preparation
  • Engaging HR consultants familiar with state-run paid family leave programs
  • Consulting with payroll/benefits administrators on contribution mechanics

Note: These are general considerations only. Specific preparation steps depend on individual employer circumstances. Professional guidance recommended.

Resources and Information

Official MD FAMLI Information:

  • Website: https://mdfamli.com/
  • Updates: Subscribe to email updates on website
  • FAQs: Available on website (being updated as regulations develop)

Maryland Department of Labor:

Professional Consultation:

  • Employment attorney with Maryland expertise
  • HR compliance consultant
  • Benefits administrator

Other Leave Protections

Federal Family and Medical Leave Act (FMLA)

The federal FMLA provides eligible employees with unpaid, job-protected leave for specified family and medical reasons.

Basic Framework:

  • Coverage: Employers with 50+ employees within 75-mile radius
  • Eligibility: Employees with 12 months service and 1,250 hours worked
  • Leave: Up to 12 weeks unpaid leave per 12-month period (26 weeks for military caregiver leave)
  • Job Protection: Right to return to same or equivalent position

Qualifying Reasons:

  • Birth/adoption/foster placement of child
  • Care for family member with serious health condition
  • Employee’s own serious health condition
  • Military family leave

Application to Remote Workers:
Remote workers who meet eligibility criteria generally are covered by FMLA. The “50 employees within 75 miles” test may be complex for remote workforce. Employers should consult U.S. Department of Labor guidance.

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/fmla

Note: FMLA is unpaid leave with job protection. Maryland’s FAMLI (when implemented) will provide wage replacement. Leaves may coordinate or run concurrently. Consult legal counsel on interactions.

Jury Duty Leave

According to Maryland Code, Courts and Judicial Proceedings Article § 8-501:

  • Employers cannot require or request employees to use annual leave for jury duty
  • Employers generally cannot discharge or threaten employee for jury service
  • Employees retain all seniority and benefits accrued prior to jury service

Compensation:
Maryland law does not generally require employers to pay wages during jury duty. Jurors receive statutory jury fees from the court.

Note: Some employer policies may provide paid jury duty leave. Employers should review their specific policies and consult legal counsel.

Voting Leave

According to Maryland Code, Election Law Article § 10-315:

  • Employees may be entitled to up to 2 hours of paid leave to vote if:
    • Employee does not have 2 continuous hours to vote while polls are open outside of working hours
    • Employee provides proof of voting or attempt to vote

Note: Specific conditions apply. Employers should consult Maryland election law guidance.

Military Leave

Federal USERRA

The Uniformed Services Employment and Reemployment Rights Act (USERRA) provides:

  • Job protection for military service
  • Reemployment rights after military service
  • Protection against discrimination

Source: U.S. Department of Labor VETS – https://www.dol.gov/agencies/vets/programs/userra

Maryland Military Leave

Maryland also has state military leave protections. Employers should consult Maryland Department of Labor guidance on state military leave requirements.

Crime Victims’ Leave

Maryland law may provide leave rights for employees who are crime victims or family members of crime victims. Employers should consult Maryland law and legal counsel regarding crime victims’ leave obligations.

Workers' Compensation Overview for Maryland

Legal Framework

Statutory Authority: Maryland Code, Labor and Employment Article, Title 9
Administering Agency: Maryland Workers’ Compensation Commission
Commission Contact:

General Coverage Requirements

According to Maryland statutes and Workers’ Compensation Commission guidance:

Coverage Generally Required:
According to § 9-202, employers generally must provide workers’ compensation insurance if they have:

  • One or more employees in Maryland (with certain limited exceptions)

What This Generally Means:

  • Almost all Maryland employers must carry workers’ compensation insurance
  • Coverage required from first day of employment
  • No minimum payroll or hours threshold

Exemptions (Limited):
According to statute, very limited exemptions may exist for:

  • Certain casual employees under specific conditions
  • Sole proprietors (for themselves)
  • Certain real estate agents (under specific conditions)
  • Other narrow categories as specified in statute

Note: Exemptions are extremely limited and fact-specific. Employers should not assume exemption without verification from Maryland Workers’ Compensation Commission or legal counsel.

Source: Maryland Code §§ 9-201, 9-202; Maryland Workers’ Compensation Commission

Maryland’s Workers’ Compensation System

Maryland operates a competitive workers’ compensation insurance market.

How the System Works:

Insurance Requirement:

  • Employers must secure coverage through:
    • Private insurance carriers authorized in Maryland, OR
    • Self-insurance (if approved by Workers’ Compensation Commission), OR
    • Maryland Injured Workers’ Insurance Fund (IWIF) – state-affiliated option

Commission’s Role: According to official information:

  • Maryland Workers’ Compensation Commission adjudicates disputed claims
  • Commission does not make benefit payments (insurers/employers pay benefits)
  • Commission provides claim forms and oversees process

Source: Maryland Workers’ Compensation Commission – https://www.wcc.state.md.us/

Compensable Injuries: General Legal Standard

⚠️ CRITICAL: Whether a specific injury is compensable requires official determination by the Maryland Workers’ Compensation Commission based on complete facts. The information below is general background only.

“Arising Out of and In the Course of Employment”

According to Maryland law § 9-501, compensable accidental injuries generally must:

  • Arise out of employment: Have a causal connection to employment
  • In the course of employment: Occur within the time and space boundaries of employment

What This Generally Means: Both elements typically must be satisfied for compensation. According to case law and Commission guidance, relevant considerations may include:

  • Was employee engaged in work activity when injured?
  • Did injury occur during work hours?
  • Did injury occur in work location or area?
  • Was activity authorized or expected by employer?
  • Did injury result from employment conditions or requirements?

Note: No single factor is necessarily determinative. Maryland Workers’ Compensation Commission evaluates complete circumstances.

Remote Worker Coverage Considerations

⚠️ EXTREMELY COMPLEX AND FACT-SPECIFIC: Coverage of injuries to remote workers involves detailed factual analysis that varies case by case. The following is general background only and does not constitute coverage determinations.

General Principles Applicable to Remote Workers

According to legal principles and available guidance:

Home as Workplace:
Whether a home qualifies as a “workplace” for workers’ compensation purposes may depend on factors including:

  • How much work the employee performs at home
  • How often the employee works remotely
  • Whether employer authorized or knew about home work arrangement
  • Whether employee keeps work equipment at home
  • Whether remote work is required or merely permitted

Temporal Element (Time):
Injuries generally must occur during work time. For remote workers, distinguishing work time from personal time can be challenging because:

  • Traditional boundaries (commute, physical workplace) don’t exist
  • Work and personal activities may be intermingled
  • Proving when injury occurred relative to work may be difficult

Activity Element:
According to general workers’ compensation principles, compensable activities typically must be work-related. Activities that may raise questions include:

  • Personal comfort activities (preparing meals, using bathroom)
  • Household activities unrelated to work
  • Transitioning between work and personal activities

⚠️ Important: These factors are for general understanding only. Every claim is unique and requires evaluation by Maryland Workers’ Compensation Commission based on all specific facts.

Illustrative Scenarios for Remote Workers

Every workers’ compensation claim depends on its specific facts and circumstances. Only the Maryland Workers’ Compensation Commission can make official coverage determinations. Consult the Commission and legal counsel for guidance on specific situations.

Scenario Category: Work-Related Activities in Home Office

Example Situation: Remote employee trips over computer cables in designated home office area while walking to retrieve work documents from printer during scheduled work hours.

General Observations:
Based on general workers’ compensation principles, this type of scenario may share some characteristics with situations that have historically been found compensable in various contexts, such as:

  • Activity was work-related (retrieving work documents)
  • Occurred in designated work area (home office)
  • During scheduled work hours
  • Injury caused by work equipment (computer cables)

However, compensability would depend on complete factual analysis including:

  • Whether home office was formally designated by employer
  • Whether employer knew of and approved home office setup
  • Whether employer had any involvement in home office configuration
  • Other specific circumstances

This is not a coverage determination. Actual determination would be made by Maryland Workers’ Compensation Commission based on all facts. Similar scenarios have had different outcomes depending on specific circumstances.

Example Situation: Employee develops carpal tunnel syndrome after months of typing on computer performing work duties from home workstation.

General Observations:
Occupational diseases or repetitive stress injuries may potentially be compensable under Maryland law if they result from and arise in the course of employment. According to § 9-501, this may include diseases that develop because of employment conditions.

Factors that may be relevant include:

  • Medical documentation linking condition to work activities
  • Nature and duration of work activities
  • Whether condition developed during course of employment
  • Other medical and factual considerations

This is not a coverage determination. Medical causation and compensability determinations require evaluation by medical professionals and the Maryland Workers’ Compensation Commission.

Scenario Category: Transitional Activities

Example Situation: Employee injured while walking from bedroom to home office at start of workday, before beginning work tasks.

General Observations:
According to general “going and coming rule” principles in workers’ compensation law, injuries during commutes are often not compensable. However, application to remote workers raising questions such as:

  • Does walking from bedroom to home office constitute a “commute”?
  • Had workday commenced?
  • Were there special circumstances?

Different jurisdictions have approached these questions differently. In Maryland, determination would require analysis of specific facts and applicable legal principles.

This is not a coverage determination. Consult Maryland Workers’ Compensation Commission for guidance.

Scenario Category: Personal Comfort Activities

Example Situation: Employee injured while preparing personal lunch in kitchen during designated lunch break.

General Observations:
According to general workers’ compensation principles, personal comfort activities may sometimes be compensable if sufficiently connected to employment. However, purely personal activities during breaks may be less likely to be considered work-related.

Relevant considerations might include:

  • Whether employee was completely relieved of duties
  • Whether activity was personal or had work-related aspects
  • Location relative to work area
  • Other circumstances

This is not a coverage determination. Coverage depends on specific facts evaluated by Maryland Workers’ Compensation Commission.

Scenario Category: Mixed Work/Personal Activity

Example Situation: Employee answers urgent work phone call while descending home stairs to get personal mail, trips and falls.

General Observations:
Mixed work/personal scenarios can be particularly complex. Factors that might be considered include:

  • Predominant purpose of activity at moment of injury
  • Whether work activity was required or voluntary
  • Whether employer benefited from activity
  • Causal connection between work activity and injury

These determinations are highly fact-specific and may depend on precise timing and circumstances.

This is not a coverage determination. Maryland Workers’ Compensation Commission would evaluate based on complete facts.

Every workers’ compensation claim is unique and depends on its specific facts. Similar-sounding situations can have different outcomes based on details. Coverage determinations are made by Maryland Workers’ Compensation Commission based on:

  • Complete factual circumstances
  • Medical evidence
  • Testimony and documentation
  • Application of Maryland law to specific facts

Workers with questions about coverage should:

  1. Report any potential work-related injury to employer immediately
  2. Consult Maryland Workers’ Compensation Commission: (410) 864-5100
  3. Seek guidance from workers’ compensation attorney
  4. Obtain medical evaluation and documentation

Employers with questions about coverage obligations should:

  1. Report potential claims to insurance carrier
  2. Consult Maryland Workers’ Compensation Commission
  3. Seek guidance from workers’ compensation attorney
  4. Review safety and risk management with professionals

Benefits Generally Available

According to Maryland workers’ compensation statutes, benefits that may be available for compensable injuries include:

Medical Treatment (§ 9-660):

  • All reasonable and necessary medical treatment related to compensable injury
  • No deductibles or copays for covered treatment
  • Choice of treating physician (with certain procedures)

Temporary Total Disability (§ 9-629):

  • Weekly benefits during period of total disability
  • Generally two-thirds (2/3) of average weekly wage
  • Subject to maximum and minimum amounts set by law
  • Paid after 3-day waiting period (first 3 days compensated if disability exceeds 14 days)

Temporary Partial Disability (§ 9-631):

  • Benefits for partial disability preventing full wage earning
  • Based on wage loss calculations

Permanent Partial Disability (§ 9-627):

  • Benefits for permanent impairments
  • Based on medical evaluation and legal formula
  • Varies by body part and degree of impairment

Permanent Total Disability (§ 9-636):

  • Weekly benefits for permanent total disability
  • Generally two-thirds (2/3) of average weekly wage
  • Subject to statutory maximum
  • May continue for extended period or life of employee

Vocational Rehabilitation:

  • Services may be available in certain circumstances

Death Benefits (§ 9-681):

  • Benefits for dependents if employee dies from work-related injury
  • Burial expenses

Source: Maryland Code, Labor and Employment Article, Title 9, Subtitle 6

Note: Specific benefit amounts, durations, and eligibility depend on many factors including injury severity, wages, dependency status, and medical findings. This is general background only. Consult Maryland Workers’ Compensation Commission or legal counsel for benefit calculations.

Reporting and Claim Process

According to Maryland regulations and Workers’ Compensation Commission procedures:

For Employees

Step 1: Report Injury to Employer

  • Timing: Generally should report within 10 days of injury
  • Method: Oral or written report to employer
  • Why Critical: Delayed reporting may affect claim

Step 2: Seek Medical Attention

  • Obtain prompt medical evaluation and treatment
  • Follow employer’s procedures for authorized medical providers (if applicable)
  • Keep records of all medical treatment

Step 3: File Claim (if necessary)

  • If employer/insurer does not voluntarily pay benefits, employee can file Employee Claim Form (Form C-1)
  • Available at: https://www.wcc.state.md.us/
  • Timing: Generally within 2 years of injury (with some exceptions)

Source: Maryland Workers’ Compensation Commission – https://www.wcc.state.md.us/

For Employers

Employer Reporting Obligations:

According to Maryland regulations:

Step 1: Immediate Response

  • Take report from employee
  • Provide employee with information about medical treatment options
  • Notify insurance carrier

Step 2: File Injury Report

  • Form: First Report of Injury (Form 1D1)
  • Timing: Within 10 days of notice of injury
  • Submission: To Maryland Workers’ Compensation Commission and insurance carrier

Step 3: Claims Administration

  • Work with insurance carrier on claim investigation
  • Cooperate with Commission proceedings if claim is disputed
  • Maintain accurate records

Source: Maryland Code § 9-601; Maryland Workers’ Compensation Commission

Penalties for Non-Compliance

According to Maryland statutes:

For Uninsured Employers:

Employers who fail to carry required workers’ compensation insurance may face:

  • Fines: Up to $10,000 per violation
  • Stop Work Orders: Work sites may be shut down
  • Personal Liability: May be personally liable for benefits
  • Criminal Penalties: In some circumstances

For Failure to Report:

Employers who fail to report injuries may face penalties and fines.

Note: These are potential consequences described in statute. Consult legal counsel if facing compliance issues.

Source: Maryland Code §§ 9-408, 9-1001, 9-1003

Best Practices for Remote Work (General Recommendations Only)

The following are general recommendations compiled from various sources. They do not constitute legal requirements and may not be suitable for all situations. Employers should develop safety and risk management programs with guidance from legal counsel, insurance professionals, and safety consultants.

For Employers

Safety and Prevention:

  • Consider providing ergonomic guidance for home office setup
  • Consider providing ergonomic equipment or stipends
  • Consider safety training specific to remote work environment
  • Consider regular check-ins about workspace safety

Documentation:

  • Consider documenting remote work arrangements and authorization
  • Consider maintaining records of home office location and setup
  • Consider clear policies on work hours and expectations
  • Consider incident reporting procedures specific to remote workers

Insurance Coordination:

  • Inform workers’ compensation insurance carrier about remote workers
  • Verify coverage applies to remote work arrangements
  • Discuss any special requirements or endorsements needed
  • Review premium calculations (remote workers may affect experience ratings differently)

For Employees (General Information)

Workspace Setup:

  • Consider setting up dedicated work area
  • Consider ergonomic setup to prevent injury
  • Consider keeping work area free of hazards
  • Consider proper lighting and equipment positioning

Injury Reporting:

  • Report any work-related injury to employer immediately
  • Seek appropriate medical attention
  • Document circumstances of any incident
  • Follow employer’s reporting procedures

Work Boundaries:

  • Consider maintaining clear work hour boundaries
  • Consider taking regular breaks
  • Consider separating work and personal activities
  • Consider following employer safety guidelines

Note: These are general suggestions only, not legal requirements. Individual circumstances vary.

Resources and Contacts

Maryland Workers’ Compensation Commission:

For Legal Representation:

  • Workers’ Compensation Attorney (employee or employer)
  • Maryland State Bar Association Referral: (410) 685-7878 or (800) 492-1964

For Medical Evaluation:

  • Licensed medical providers
  • Workers’ compensation medical specialists

For Employers – Insurance Information:

  • Insurance carrier or broker
  • Maryland Injured Workers’ Insurance Fund (IWIF): (410) 494-2000
  • Self-insurance approval: Contact Workers’ Compensation Commission

Never make assumptions about coverage or non-coverage. When in doubt, report the injury and seek official guidance.

Unemployment Insurance

General Framework

Maryland’s Unemployment Insurance (UI) program provides temporary financial assistance to eligible workers who lose employment through no fault of their own.

Administering Agency: Maryland Division of Unemployment Insurance
Contact:

Eligibility Requirements (General Framework)

According to Maryland Division of Unemployment Insurance, to qualify for benefits, individuals generally must:

Work and Wage Requirements:

  • Have earned sufficient wages during “base period” (generally first 4 of last 5 completed calendar quarters)
  • Meet minimum earnings thresholds

Separation from Employment:

  • Be unemployed or working reduced hours through no fault of their own
  • Have not been discharged for misconduct
  • Have not voluntarily quit without good cause

Ongoing Requirements:

  • Be able and available to work
  • Actively seeking employment
  • Register with Maryland Workforce Exchange
  • File weekly claim certifications

Source: Maryland Division of Unemployment Insurance

Application to Remote Workers

General Principles:

  • Unemployment insurance generally applies based on where work was performed
  • Remote workers performing work in Maryland typically contribute to Maryland UI system
  • Multi-state remote workers may involve complex jurisdictional issues

Note: UI eligibility and jurisdictional questions can be complex for remote workers. Consult Maryland Division of Unemployment Insurance for specific situations.

Benefit Amounts (2025)

According to Maryland Division of Unemployment Insurance:

Weekly Benefit Amount:

  • Generally ranges from $50 to $430 per week
  • Based on earnings during base period
  • Maximum of 26 weeks of benefits in standard benefit year

Extended Benefits:
May be available during high unemployment periods (requires federal or state authorization).

Source: Maryland Division of Unemployment Insurance

Note: Benefit amounts and duration subject to change based on legislation and economic conditions. Verify current benefit information with Division of Unemployment Insurance.

Employer Obligations

UI Tax Contributions:

  • Maryland employers generally must pay state unemployment insurance taxes
  • Rates vary based on employer experience rating
  • Contributions fund the UI trust fund

Reporting Requirements:

  • Report new hires
  • File quarterly wage reports
  • Respond to UI claims and information requests
  • Maintain employment records

Note: Employers should consult Maryland Division of Unemployment Insurance or tax professional for specific contribution obligations.

Tax Nexus and Withholding

Understanding Tax Nexus

What is Nexus?

According to general tax principles, “nexus” generally refers to a sufficient connection between a jurisdiction and a taxpayer that triggers tax obligations.

Types of Nexus:

Physical Nexus:
Established through physical presence such as:

  • Employees working in the state
  • Office or business location
  • Property or inventory in the state

Economic Nexus:
Established through economic activity such as:

  • Sales revenue exceeding thresholds
  • Number of transactions in the state

Maryland Tax Nexus for Employers

According to Maryland Comptroller guidance and general tax principles:

Income Tax Nexus:

Having an employee working from Maryland generally creates:

  • Immediate employment tax nexus: Employer must withhold Maryland income tax from that employee’s wages
  • Potential corporate income tax nexus: If sufficient Maryland activity exists

What This Generally Means for Remote Work:

If an out-of-state employer has an employee working remotely from Maryland:

  • Employer likely must register with Maryland Comptroller
  • Employer must withhold Maryland income tax from Maryland-based employee’s wages
  • Employer must file Maryland income tax withholding returns
  • May trigger corporate income tax filing obligation depending on extent of activity

Source: Maryland Comptroller – https://www.marylandtaxes.gov/

Maryland Income Tax Withholding

For Maryland Residents Working Remotely

According to Maryland tax guidance:

General Rule:

  • Maryland residents are subject to Maryland income tax on all income regardless of where earned
  • Employers must withhold Maryland income tax for Maryland resident employees

Reciprocal Agreements:

Maryland has reciprocal agreements with:

  • District of Columbia
  • Pennsylvania
  • Virginia
  • West Virginia

What Reciprocity Means:
Maryland residents who work in these jurisdictions generally only file Maryland income tax return (not the work state). Employee files Form MW507 with employer.

Source: Maryland Comptroller – https://www.marylandtaxes.gov/

For Non-Residents Working in Maryland

General Rule:

  • Non-residents who work in Maryland are subject to Maryland income tax on Maryland-source income
  • Employers must withhold Maryland income tax for work performed in Maryland

Credit for Taxes Paid:
Non-resident’s home state typically provides credit for taxes paid to Maryland to avoid double taxation.

Maryland Corporate Income Tax

Nexus Threshold:

According to Maryland law:

  • Having physical presence in Maryland (including employees) generally creates corporate income tax nexus
  • Economic nexus standards may also apply

Tax Rate:
Maryland corporate income tax rate is 8.25% on net taxable income.

Apportionment:
Maryland uses single sales factor apportionment for most businesses.

Note: Corporate tax obligations are complex. Employers with Maryland nexus should consult tax professionals for filing requirements.

Source: Maryland Comptroller – https://www.marylandtaxes.gov/

Sales and Use Tax Nexus

Maryland Sales Tax:

Physical presence in Maryland, including remote employees, may create sales tax nexus for businesses selling taxable goods or services.

Economic Nexus Threshold:

  • $100,000 in gross revenue from Maryland sales or 200 transactions

Software as a Service (SaaS):
Effective July 1, 2025, Maryland taxes SaaS at reduced rate of 3%.

Note: Sales tax obligations depend on type of business and products/services sold. Consult tax professionals.

Source: Maryland Comptroller

Employer Withholding Requirements

For employers with Maryland employees (including remote workers):

Registration:

  • Register with Maryland Comptroller for withholding account
  • Obtain Maryland withholding account number

Withholding:

  • Withhold Maryland income tax from employee wages
  • Use employee’s Form MW507 or federal W-4 for calculation
  • Apply appropriate Maryland tax rates

Reporting:

  • File quarterly withholding returns
  • File annual reconciliation (Form MW508)
  • Provide W-2s to employees with Maryland wages

Local Income Tax:
Maryland has local income taxes at county level. Employers must withhold both state and local tax.

Note: Maryland has 23 counties plus Baltimore City, each with different local tax rates. Employers must withhold based on employee’s county of residence.

Source: Maryland Comptroller – https://www.marylandtaxes.gov/

Multi-State Remote Worker Complications

Challenge:
Employers with remote workers in multiple states face:

  • Multiple state income tax withholding obligations
  • Multiple unemployment insurance jurisdictions
  • Varying local tax requirements
  • Different wage and hour laws

General Approach:

  1. Identify states where employees work
  2. Register in each state for applicable taxes
  3. Implement payroll systems capable of multi-state processing
  4. Consult tax professionals for compliance

Note: Multi-state taxation is extremely complex. Professional guidance essential.

Resources for Tax Compliance

Maryland Comptroller:

IRS (Federal Taxes):

Professional Consultation:

  • Certified Public Accountant (CPA)
  • Enrolled Agent (EA)
  • Tax Attorney
  • Payroll Service Provider with multi-state expertise

Anti-Discrimination Laws

Legal Framework

Maryland prohibits employment discrimination through both state and federal laws.

Maryland Law

Statutory Authority: Maryland Code, State Government Article, Title 20
Administering Agency: Maryland Commission on Civil Rights (MCCR)
Official Source: https://mccr.maryland.gov/

Protected Characteristics

According to Maryland Code § 20-606, it is generally unlawful to discriminate in employment based on:

  • Race
  • Color
  • Religion
  • Sex (including pregnancy)
  • Age (40 and older)
  • National Origin
  • Marital Status
  • Sexual Orientation
  • Gender Identity
  • Genetic Information
  • Disability (physical or mental)
  • Military Status (status as a veteran or service member)

Source: Maryland Code, State Government Article § 20-606

Covered Employers

According to Maryland law:

Size Threshold:

  • Generally applies to employers with 15 or more employees
  • Age discrimination: Employers with 20 or more employees

Covered Actions: Discrimination prohibited in all aspects of employment including:

  • Hiring and firing
  • Compensation and benefits
  • Promotions and demotions
  • Job assignments
  • Training opportunities
  • Terms and conditions of employment

Source: Maryland Commission on Civil Rights

Specific Protections

Equal Pay

According to Maryland’s Equal Pay for Equal Work Act:

Protection:
Employers cannot discriminate in wages based on:

  • Sex
  • Gender identity
  • Race
  • Religious beliefs
  • Sexual orientation

Requirements:

  • Equal pay for equal work (substantially similar work requiring equal skill, effort, and responsibility)
  • Wage transparency provisions (effective 2024)
  • Employees can discuss wages without retaliation

Source: Maryland Code, Labor and Employment Article § 3-304

Pregnancy Discrimination

According to Maryland law:

  • Pregnancy discrimination prohibited
  • Reasonable accommodations required for limitations related to pregnancy, childbirth, or related medical conditions
  • Protections broader than federal law

Source: Maryland Code, State Government Article § 20-609

Disability Discrimination

According to Maryland law:

  • Discrimination based on disability prohibited
  • Reasonable accommodations required unless undue hardship
  • Interactive process required to determine accommodations

Note: Maryland law provides protections similar to federal Americans with Disabilities Act (ADA) but may differ in some respects. Consult legal counsel for specific situations.

Harassment

According to Maryland law, harassment based on protected characteristics is prohibited.

Sexual Harassment:

  • Unwelcome sexual advances, requests for sexual favors
  • Other verbal or physical conduct of a sexual nature
  • Creating hostile work environment

Other Harassment:

  • Based on any protected characteristic
  • Severe or pervasive conduct creating hostile environment

Employer Obligations:

  • Take complaints seriously
  • Conduct prompt and thorough investigations
  • Take appropriate corrective action
  • Maintain anti-harassment policies
  • Provide training (required for employers with 15+ employees)

Training Requirement:
Maryland law requires employers with 15+ employees to provide sexual harassment training.

Retaliation

According to Maryland law § 20-606(a)(3), retaliation is prohibited.

Protected Activities:

  • Filing a discrimination complaint
  • Participating in investigation or proceeding
  • Opposing discriminatory practices
  • Requesting reasonable accommodation

Prohibited Retaliation:

  • Termination
  • Demotion
  • Reduction in pay or hours
  • Unfavorable job assignments
  • Other adverse employment actions

Filing a Discrimination Complaint

Maryland Commission on Civil Rights (State)

Filing Deadline:
Generally must file within 6 months of alleged discrimination

Contact Information:

  • Phone: (410) 767-8600 or (800) 637-6247
  • TTY: (410) 333-1737
  • Website: https://mccr.maryland.gov/
  • Address: 6 St. Paul Street, Suite 900, Baltimore, MD 21202

Process:

  1. File complaint (online, by mail, or in person)
  2. Investigation by Civil Rights Officer
  3. Mediation may be offered
  4. If evidence of discrimination, complaint proceeds to hearing
  5. Administrative law judge issues decision
  6. Remedies may include back pay, damages, attorney’s fees

U.S. Equal Employment Opportunity Commission (Federal)

Filing Deadline:
Generally must file within 180 days of alleged discrimination (extended to 300 days if state has fair employment agency like Maryland)

Contact Information:

  • Baltimore Office: 10 South Howard Street, 3rd Floor, Baltimore, MD 21201
  • Phone: (410) 962-3932 or (800) 669-4000
  • Website: https://www.eeoc.gov/

Dual Filing:
Maryland and EEOC have work-sharing agreement. Filing with one generally constitutes filing with both.

Federal Anti-Discrimination Laws

In addition to Maryland law, federal laws prohibit employment discrimination:

Title VII of the Civil Rights Act:

  • Prohibits discrimination based on race, color, religion, sex, national origin
  • Applies to employers with 15+ employees

Age Discrimination in Employment Act (ADEA):

  • Prohibits age discrimination (40+)
  • Applies to employers with 20+ employees

Americans with Disabilities Act (ADA):

  • Prohibits disability discrimination
  • Requires reasonable accommodations
  • Applies to employers with 15+ employees

Pregnancy Discrimination Act:

  • Prohibits pregnancy discrimination
  • Amendment to Title VII

Genetic Information Nondiscrimination Act (GINA):

  • Prohibits genetic information discrimination

Source: U.S. Equal Employment Opportunity Commission – https://www.eeoc.gov/

Application to Remote Workers

Anti-discrimination laws generally apply to remote workers in the same manner as on-site workers.

Key Points:

  • Remote workers protected from discrimination based on protected characteristics
  • Accommodations for disabilities must be considered for remote work arrangements
  • Harassment can occur in virtual environment (emails, video calls, messaging)
  • Retaliation protections apply to remote workers

Note: Remote work arrangements may raise unique accommodation issues. Employers should consult legal counsel on remote work accommodation requests.

Best Practices (General Recommendations Only)

The following are general recommendations compiled from various sources for preventing discrimination. They do not constitute legal requirements and may not be suitable for all situations. Employers should develop policies with legal counsel.

Policies and Training:

  • Maintain clear anti-discrimination and anti-harassment policies
  • Provide regular training to all employees and managers
  • Include remote work in policy considerations
  • Train on virtual harassment prevention

Hiring and Promotion:

  • Use objective, job-related criteria
  • Consistent interview questions and evaluation processes
  • Document hiring and promotion decisions
  • Avoid questions about protected characteristics

Accommodations:

  • Have clear reasonable accommodation request process
  • Engage in interactive process
  • Consider remote work as potential accommodation
  • Document accommodation discussions and decisions

Complaint Handling:

  • Take all complaints seriously
  • Conduct prompt, thorough, impartial investigations
  • Maintain confidentiality to extent possible
  • Take appropriate corrective action
  • No retaliation against complainants

Resources and Contacts

Maryland Commission on Civil Rights:

U.S. Equal Employment Opportunity Commission:

Legal Consultation:

  • Employment attorney licensed in Maryland
  • Maryland State Bar Association Referral: (410) 685-7878

Remote Work Specific Considerations

Data Privacy and Security

Maryland Personal Information Protection Act:

Maryland law requires businesses to implement and maintain reasonable security measures to protect personal information.

For Remote Workers:

  • Consider secure VPN connections
  • Consider encryption for sensitive data
  • Consider device security policies
  • Consider training on data protection

Note: Data privacy is complex and industry-specific. Consult cybersecurity and legal professionals.

Equipment and Reimbursement

Maryland Law:

Maryland does not generally have state law requiring employers to reimburse remote workers for equipment or expenses.

However:

  • Federal minimum wage laws require that expenses cannot reduce wages below minimum wage
  • Some expenses may be tax-deductible (consult tax professional)
  • Employer policies may provide reimbursement

Best Practices (Recommendations):

  • Consider clear policies on equipment provision/reimbursement
  • Consider stipends for home office setup
  • Consider reimbursement for internet/phone if used for work
  • Document equipment provided to employees

Workplace Safety for Remote Workers

OSHA Requirements:

Federal Occupational Safety and Health Administration (OSHA) regulations generally apply to remote workers.

However:
OSHA has stated it will not conduct inspections of home offices. Employers still have general duty to provide safe workplace.

Considerations:

  • Provide ergonomic guidance
  • Consider safety training for remote work
  • Consider policies on workspace setup
  • Encourage reporting of safety concerns

Right to Disconnect

Maryland Law:

As of December 2025, Maryland does not have a specific “right to disconnect” law requiring employers to allow employees to disconnect from work communications outside work hours.

However:

  • Wage and hour laws still apply (non-exempt employees must be paid for all time worked)
  • Consider policies on after-hours communications
  • Consider expectations for response times

Resources

State Agencies

Maryland Department of Labor:

Maryland Workers’ Compensation Commission:

Maryland Comptroller:

Maryland Commission on Civil Rights:

Federal Agencies

U.S. Department of Labor:

U.S. Equal Employment Opportunity Commission:

Internal Revenue Service:

Professional Organizations

Maryland State Bar Association:

Maryland Chamber of Commerce:

Frequently Asked Questions

General Questions

Q: I’m an out-of-state employer hiring my first Maryland remote employee. What do I need to do?

A: According to general requirements, employers hiring Maryland-based employees typically need to:

  1. Register with Maryland Comptroller for income tax withholding
  2. Register for Maryland unemployment insurance
  3. Obtain workers’ compensation insurance covering Maryland employees
  4. Comply with Maryland wage and hour laws (minimum wage, overtime, paid sick leave)
  5. Comply with Maryland employment laws (anti-discrimination, etc.)
  6. Consider any local ordinances (Montgomery County, Howard County)

This is general information only. The specific steps depend on your business structure and circumstances. Consult Maryland agencies, employment attorney, and tax professional for comprehensive guidance on employer registration and compliance requirements.

Q: Do Maryland employment laws apply to my remote worker if my company is based in another state?

A: Generally, employment laws apply based on where the employee physically performs the work, not where the employer is located. According to general legal principles:

  • A remote worker performing work from Maryland would generally be subject to Maryland employment laws including:
    • Maryland minimum wage
    • Maryland overtime rules
    • Maryland paid sick leave (if employer size threshold met)
    • Maryland anti-discrimination protections
    • Maryland workers’ compensation coverage

However, some federal laws may also apply, and multi-state employment raises complex jurisdictional questions. Consult employment attorney for guidance on your specific situation, especially if employees work in multiple states or split time between locations.

Wage and Hour Questions

Q: What is Maryland’s minimum wage for remote workers in 2025-2026?

A: According to Maryland Department of Labor:

State minimum wage: $15.00/hour (effective January 1, 2025)

Local minimum wages (higher rates):

  • Montgomery County: $17.65/hour for large employers (51+), $16.00 for mid-sized (11-50), $15.50 for small (10 or fewer) – effective July 1, 2025
  • Howard County: $15.00 currently; increases to $16.00 for 15+ employees on January 1, 2026

The applicable rate depends on where the remote worker performs work and employer size. A remote worker working from Montgomery County would generally be subject to Montgomery County’s minimum wage.

This is general information. Verify current rates with Maryland Department of Labor and local jurisdictions, and consult legal counsel for compliance requirements.

Source: Maryland Department of Labor – https://labor.maryland.gov/labor/wages/

Q: Do I have to pay my Maryland remote worker overtime?

A: According to Maryland and federal law, whether overtime is required depends on whether the employee is properly classified as:

Non-exempt: Generally must be paid 1.5x regular rate for hours over 40 in workweek

Exempt: Not entitled to overtime if employee meets ALL requirements:

  • Salary basis test
  • Salary level test (generally $844/week minimum federal standard)
  • Duties test (executive, administrative, professional, or other exemption)

Job title alone does not determine exemption status. All three tests must be met. Misclassification can result in significant back pay liability.

For classification guidance, consult Maryland Department of Labor, U.S. Department of Labor, and employment attorney. Never assume exemption without verification.

Leave Questions

Q: Does Maryland require paid sick leave for remote workers?

A: According to Maryland’s Healthy Working Families Act:

For employers with 15+ employees: Paid sick and safe leave required For employers with 14 or fewer employees: Unpaid sick and safe leave required

Requirements:

  • Accrual: 1 hour per 30 hours worked (up to 40 hours/year)
  • Uses: Health care, family care, domestic violence situations, maternity/paternity leave
  • Applies to remote workers performing work in Maryland

Employer size is determined by calculating average monthly employees during previous year.

Montgomery County: Has separate, more extensive sick leave requirements for employers with 1+ employees.

For compliance guidance, consult Maryland Department of Labor (https://labor.maryland.gov/paidleave/) and legal counsel. Requirements are detailed and technical.

Q: What is Maryland FAMLI and when does it start?

A: Maryland Family and Medical Leave Insurance (MD FAMLI) is a state paid family and medical leave program enacted by legislation but not yet implemented.

Expected Timeline (Subject to Change):

  • Employer/employee contributions expected: January 1, 2027
  • Benefits expected to be available: January 3, 2028

Expected Benefits (When Implemented):

  • Up to 12 weeks paid leave for qualifying reasons (family care, own health, bonding with child)
  • Wage replacement benefits
  • Job protection provisions

Regulations are being developed. Employers should monitor https://mdfamli.com/ for updates and consult legal counsel for preparation.

This timeline reflects information as of December 2025 and is subject to change. Do not make business decisions based solely on expected dates. Verify with official sources.

Classification Questions

Q: How do I know if my remote worker is an employee or independent contractor in Maryland?

A: Maryland uses the ABC Test for unemployment insurance, workers’ compensation, and Workplace Fraud Act purposes. Under this test, a worker is presumed to be an employee unless ALL three factors are met:

Factor A: Individual is free from direction and control
Factor B: Individual is customarily engaged in independent business of same nature
Factor C: Work is outside usual course of business OR performed outside employer’s place of business

All three factors must be satisfied for independent contractor classification. Federal agencies may use different tests.

⚠️ Critical: Misclassification can result in:

  • Back payment of wages, taxes, and benefits
  • Penalties up to $5,000 per worker (Workplace Fraud Act)
  • Criminal liability in extreme cases

Never make classification decisions without consulting:

  • Maryland Department of Labor: (410) 767-9885
  • Employment attorney licensed in Maryland
  • Tax professional (CPA or enrolled agent)
  • IRS (for federal classification)

Classification is complex and high-risk. Professional guidance essential.

Source: Maryland Department of Labor – https://labor.maryland.gov/workplace/

Workers’ Compensation Questions

Q: Are remote workers covered by Maryland workers’ compensation?

A: Generally, employees working in Maryland are required to be covered by workers’ compensation insurance. However, whether a specific injury is compensable requires fact-specific analysis by Maryland Workers’ Compensation Commission.

General Principles:

  • Injuries must “arise out of and in the course of employment”
  • Remote work location does not eliminate coverage
  • Compensability depends on specific circumstances:
    • Was employee engaged in work activity?
    • Did injury occur during work hours?
    • Did injury occur in work area?
    • What was causal connection to work?

Examples require case-by-case evaluation. Never assume coverage or non-coverage.

If injury occurs:

  1. Report to employer immediately (within 10 days)
  2. Seek medical attention
  3. Document circumstances
  4. File claim if benefits not provided

For questions:

  • Maryland Workers’ Compensation Commission: (410) 864-5100
  • Workers’ compensation attorney
  • See Workers’ Compensation section in Part 4 for detailed information

This is general background only. Actual coverage determinations made by Maryland Workers’ Compensation Commission based on complete facts.

Tax Questions

Q: Do I have to pay Maryland taxes if I work remotely for an out-of-state company?

A: According to general Maryland tax principles:

If you are a Maryland resident: You generally owe Maryland income tax on all income regardless of where earned, including income from out-of-state employers.

If you are a non-resident working in Maryland: You generally owe Maryland income tax on income earned while physically working in Maryland.

Employer’s obligation: If you work in Maryland, your employer generally must:

  • Register with Maryland Comptroller
  • Withhold Maryland income tax from your wages
  • File Maryland withholding returns

Reciprocity: Maryland has reciprocal agreements with DC, PA, VA, and WV. If you live in Maryland but work in these states, you may only need to file Maryland return (not work state).

This is general information only, not tax advice. Tax situations vary. Consult:

  • Maryland Comptroller: (410) 260-7980
  • Tax professional (CPA, enrolled agent, or tax attorney)
  • Never make tax decisions without professional guidance

Source: Maryland Comptroller – https://www.marylandtaxes.gov/

Discrimination Questions

Q: Are remote workers protected by Maryland anti-discrimination laws?

A: Yes. According to Maryland law, anti-discrimination protections generally apply equally to remote and on-site workers.

Protected characteristics include: Race, color, religion, sex, age (40+), national origin, marital status, sexual orientation, gender identity, genetic information, disability, military status.

Protections apply to:

  • Hiring and firing
  • Compensation
  • Promotions
  • Harassment (including virtual harassment via email, video calls, etc.)
  • Retaliation for complaints

Harassment can occur in virtual environment. Same standards apply.

If you experience discrimination:

  • Maryland Commission on Civil Rights: (410) 767-8600 – File within 6 months
  • U.S. EEOC: (410) 962-3932 – File within 180-300 days
  • Employment attorney

This is general information. For specific situations, consult Maryland Commission on Civil Rights or employment attorney.

Source: Maryland Commission on Civil Rights – https://mccr.maryland.gov/

Additional Questions

Q: Where can I find official Maryland employment law posters?

A: Required workplace posters are available free from Maryland Department of Labor:

Website: https://labor.maryland.gov/labor/employment/empposters.shtml

Required posters generally include:

  • Minimum wage notice
  • Earned sick and safe leave notice
  • Equal employment opportunity
  • Workers’ compensation information
  • Unemployment insurance information

Remote workers: While physical posting may not be possible, employers should provide notices electronically or by other means to ensure remote workers have access to required information.

Consult Maryland Department of Labor for current poster requirements.

Others

Virginia
Delaware
Pennsylvania
Washington DC
New Jersey

Legal Disclaimer: This guide provides general background information only and does not constitute legal, tax, or professional advice. Employment laws are complex and subject to interpretation. Consult licensed legal counsel and official state agencies for guidance specific to your situation.