Salary History Ban in Maryland: What Employers Can Ask

Federal law does not impose a blanket salary history ban. However, several federal laws address pay discrimination indirectly. The Equal Pay Act of 1963 (29 U.S.C. § 206) prohibits sex-based pay discrimination. Title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e) prohibits discrimination in compensation based on race, color, religion, sex, or national origin. The Age Discrimination in Employment Act of 1967 (29 U.S.C. § 621) protects workers over 40 from age-based pay discrimination.

The Lilly Ledbetter Fair Pay Act of 2009 extended the statute of limitations for pay discrimination claims. However, federal law does not restrict employers' ability to ask about salary history or use prior compensation as a factor in determining new wages. The EEOC enforces federal pay discrimination laws but does not regulate salary history inquiries. Some federal contractors must comply with Executive Order 11246, which requires nondiscrimination in employment and applies to companies with federal contracts exceeding $50,000. Federally, the focus is on preventing discrimination in the final wage decision, not on restricting the information-gathering process itself.

Maryland's salary history ban is significantly stronger than federal law and represents one of the nation's most comprehensive protections in this area. Maryland Labor and Employment Article § 3-701 prohibits all employers in Maryland from asking candidates about salary history before extending a job offer. The statute applies to inquiries made directly to the candidate or indirectly through current or former employers, references, or other third parties.

Maryland defines "salary history" as wages, benefits, or other compensation paid to a candidate in a previous position. The law is broader than federal protections because it prevents employers from even requesting this information, whereas federal law focuses only on whether compensation decisions constitute discrimination. Unlike federal law, which requires the employee to prove discriminatory intent, Maryland's law makes the inquiry itself illegal regardless of whether discrimination ultimately occurred.

The statute applies to all employers in Maryland with no employee size threshold, making it applicable to even single-person operations. Importantly, the law does not prevent candidates from voluntarily disclosing their salary history if they choose to do so. Additionally, Maryland law permits employers to confirm salary information that a candidate has already voluntarily provided, but cannot independently seek that information.

Maryland's law also allows employers to discuss and rely on salary expectations—what a candidate hopes to earn—rather than prior compensation. This distinction is critical because employers can ask "What is your salary expectation for this role?" but cannot ask "What were you paid in your last job?" The remedies under Maryland law include civil penalties and damages available through private lawsuits, providing stronger enforcement mechanisms than federal law alone.

Maryland law includes limited exceptions to the salary history ban. A candidate may voluntarily and without employer solicitation provide information about their own salary history, and once disclosed, an employer may discuss and verify that information. However, the employer cannot initiate the request for this information. Additionally, employers may confirm salary information already disclosed by a candidate with their prior employers, provided the candidate has authorized the verification.

The law does not apply to inquiries about salary history made after a job offer has been extended and accepted. At that point, employers have greater flexibility in salary discussions, though they still must comply with other pay discrimination laws.

Maryland law contains no exceptions for executives, contractors, temporary workers, or any other category of employment. The statute does not distinguish between different types of positions or employers. Public employers are also subject to the ban, though they may have additional requirements under government employment rules.

One practical exception arises through the distinction between salary history (past compensation) and salary expectations (future compensation). Employers can inquire about what salary range a candidate is seeking, provided the question does not reference prior compensation. Furthermore, employers can base offers on the candidate's stated salary expectations rather than historical data. The law also does not prevent employers from conducting background checks or verifying employment history; it specifically restricts inquiry into the compensation earned during prior employment.

Step 1: Document the violation carefully and thoroughly. Keep copies of all communications where the employer asked about salary history—emails, written applications with salary history questions, notes from phone conversations, and any written job postings or forms that requested this information. Record the date, time, and substance of any verbal inquiries about prior wages. Note the names and titles of anyone who asked about your salary history. Document any job rejection that occurred after refusing to disclose salary history, as this may indicate retaliation.

Step 2: Understand the internal complaint process and when it matters. While Maryland does not require filing an internal complaint before suing, submitting a written complaint to the employer's HR department creates a formal record and may prompt corrective action. Send a clear, dated letter stating that you were asked about salary history in violation of Maryland Labor and Employment Article § 3-701, referencing the specific incident(s), and requesting written confirmation that the practice will cease. Keep a copy for your records. This step is important because it demonstrates that you gave the employer notice and an opportunity to remedy the violation, which may affect damages calculations and demonstrates good faith.

Step 3: File a civil action in Maryland state court or federal court (if diversity jurisdiction exists). Maryland courts have jurisdiction over salary history ban violations. You can file in the district court where the employer is located or where you live. You will need to draft a complaint alleging violation of § 3-701, include documentation of the inquiry or inquiries, and specify the damages sought. The filing fee in Maryland circuit court is approximately $175 for cases seeking less than $5,000. There is no administrative filing requirement with a state agency before pursuing a private lawsuit under the salary history statute. Federal enforcement through the EEOC is not available for pure salary history ban violations, though if the violation is tied to discrimination based on protected class (race, sex, age), you may file an EEOC charge within 300 days in Maryland.

Step 4: Understand the investigation and litigation process. Maryland courts will examine whether the employer made an inquiry about salary history, whether this was done before a job offer, and whether the inquiry was initiated by the employer (not volunteered by the candidate). The employer may argue that the candidate voluntarily disclosed compensation, but the burden is on the employer to prove this. Discovery will typically include communications, witness testimony, and expert testimony if damages are disputed. Most salary history violation cases settle before trial. The timeline from filing to resolution typically ranges from 6 to 18 months, depending on the court's docket.

Step 5: Consult an employment attorney experienced in Maryland wage and hour law or discrimination law before filing. An attorney can evaluate whether you have a strong claim, assess potential damages, and advise whether settlement negotiations make sense. Many employment law firms offer free initial consultations. An attorney will know the specific judges and magistrates in your jurisdiction and can navigate Maryland's civil procedure rules. For cases involving retaliation or discrimination tied to the salary history inquiry, seek an attorney experienced in both § 3-701 violations and discrimination claims under Maryland discrimination statutes.