Sen. Arianna Kelly, a Montgomery County Democrat, cited personal experience as the inspiration for her to sponsor the wage transparency bill. As the mother of college-age children she realized the importance of having salary information available.
“It is empowering for people who are job hunting to know the salary range,” said Kelly. “It’s really common sense, right?”
Thanks to the measure, which passed the General Assembly and has been signed by Governor Wes Moore, pay will no longer be a mystery for job seekers. Starting on October 1, every Maryland employer will be required to disclose a wage range in job postings.
“A lot of the private sector is already moving in this direction,” said Kelly. “What they have found, is that people are more likely to respond when there's a salary range. It allows them to more effectively target potential employees who find that range appropriate, so it's good for business.”
However, the bill faced opposition from the Maryland Chamber of Commerce, restaurant, hotel and retailer associations. The groups raised concerns regarding remote workers, as well as fees and fines employers would pay if they knowingly violated provisions of the bill. One included the right of action, i.e. suing the employer for up to $10,000.
“The bill establishes a private right of action for all “applicants,” even though that term is undefined,” wrote Amy Rohrer, a representative of the Maryland Hotel Lodging Association. Lawmakers scrapped some of the fines that those groups said would have been punitive, opting instead to cooperate with employers.
In the version that passed, Maryland’s Department of Labor (DOL) has pledged to assist all businesses in complying with the law. In a statement, agency spokesperson Jamie Mangrum said the Division of Labor & Industry will develop a form for employers to use to satisfy the disclosure requirements. “We will also be providing compliance guidance for employers,” added Mangrum.
Del. Jennifer White Holland, a Baltimore County Democrat, sponsored the bill in the House. For her, it presented an opportunity to tackle the gender wage gap. While Maryland has one of the smallest wage gaps in the country, the lifetime losses that women experience are stark.
According to the Equal Pay Day report (published by the DOL) earlier this year, Latina, Native and African American women lose more than $1 million in earnings over the course of their careers when compared to white men.
“As a Black, working professional, I think about the lifetime losses," said Holland. "And so providing this is a tool, an opportunity for women of color, to build and protect generational wealth.”
The bill also calls for employers to disclose wage ranges out of good faith. Asked if there would be any enforcement action if employers listed exaggerated ranges, as has been reported in other states, Kelly stated doing so would not benefit employers in recruiting qualified candidates.