Maryland Payroll Rules

Frequency of Payments

You must pay your employees at least twice per month on regularly scheduled paydays. You may pay administrative, executive, and professional employees less frequently.

If the regularly scheduled payday falls on a nonwork day, you must pay your employees on the preceding workday.

Manner of Payments

You may pay your employees by cash or check. If an employee consents, you may pay them via direct deposit.

You may pay your employees through a debit card or card account from which the employee can access funds through withdrawal, purchase or transfer if

• the employee consents to it and
• any fees are disclosed to the employee in writing in at least 12-point font.

Payment Upon Separation

If an employee leaves your company for any reason, you must pay them by the next regularly scheduled payday.

Deductions

You can only make a deduction from an employee’s paycheck if

• ordered by a court of competent jurisdiction;
• authorized expressly by the employee, in writing;
• allowed by the Maryland DOL; or
• required by any law, rule, or regulation issued by local, state, or federal government.

You can only deduct the following with written consent from the employee:

• cash shortages,
• inventory shortages,
• dishonored checks and credit cards,
• damages to the employer’s property, or
• any merchandise purchased by a customer.

Uniforms & Other Required Equipment or Tools

You may require an employee to buy a required uniform or required tools, but you cannot deduct the cost from the employee’s paycheck without written consent.

Pre-Hire Medical, Physical, & Drug Tests

Maryland does not have any laws about whether you can require employees to pay for pre-hire medical, physical, or drug tests.

Notice of Wage Reduction

You must notify an employee at least one (1) pay period in advance before changing their payday or wages.

Paystubs

For each pay period, you must give each employee a paystub. The paystub must include the employee’s gross earnings and any deductions from those earnings.

Recordkeeping

For each employee, you must keep the following records for at least three (3) years:

• name, address, and occupation;
• rate of pay;
• amount paid each pay period; and
• hours worked each day and workweek.

Notices

When you hire a new employee, you must notify them of

• their rate of pay,
• regular paydays, and
• leave benefits.