Pay equity is not just a fairness issue, it’s the law. Equal pay laws in Maryland are designed to ensure that employees receive equal compensation for substantially similar work, regardless of gender, sex, race, or other protected characteristics. If you're an employee concerned about wage discrimination or an employer working to ensure compliance, you owe it to yourself or your employees to understand the laws surrounding pay equity and strive for fairness for all.

At Lebau & Neuworth, we help Maryland workers and businesses navigate complex employment laws, including wage equity and pay discrimination matters. The first step to achieving equity is to understand exactly how the law protects equal pay and further pursues an equality for all in the workplace.

Overview of Equal Pay Laws in Maryland

Maryland has some of the strongest state-level wage equity laws in the country, building on federal protections established under the Equal Pay Act of 1963. By enshrining worker protections at the state level, the legislature is ensuring that you will always be protected with clear regulations regardless of the direction the federal government takes equal pay laws.

What Is the Maryland Equal Pay for Equal Work Law?

Enacted in 2016 and expanded in recent years, Maryland’s Equal Pay for Equal Work law prohibits employers from paying employees of one sex or race less than employees of another for comparable work, unless the pay difference is based on legitimate business-related factors.

This law goes beyond the federal Equal Pay Act by explicitly including gender identity and race, and it protects employees from retaliation for discussing or asking about wages.

Who Is Protected Under These Laws?

Maryland’s law protects employees of all genders, races, and gender identities. It applies to both full-time and part-time workers and prohibits employers from:

• Paying different wages for similar work based on sex, gender identity, or race
• Restricting employees from discussing or disclosing their wages
• Retaliating against employees for raising concerns or filing complaints
• Restricts employers from offering less favorable employment opportunities

What Employers Are Covered?

The law applies to all public and private employers in Maryland, regardless of size. Even small businesses must comply with wage equity requirements and ensure that compensation differences are legally justified.

What Counts as a Violation of Equal Pay Laws?

The Equal Pay Act covers a variety of situations that could constitute a violation. Equal Pay for Equal Work is rather self explanatory but there are a number of common occurrences that still happen even after stronger wage discrimination laws were passed.

Common Examples of Pay Discrimination

Violations can include:

• A woman being paid less than a man for performing the same duties
• An employee of color receiving a lower wage than white colleagues in the same role
• Employees being punished or terminated for asking about coworkers’ pay
• Offering lower starting salaries to applicants based on gender or race
• Not informing all employees about advancement opportunities
• Engaging in illegal or unfair practices with non-compete clauses

Permissible Differences in Pay

Maryland law allows some justifiable pay differences where they make sense, but only when based on:

• Seniority and merit-based systems that are documented and applied consistently
• Productivity-based pay structures such as commissions or bonuses tied to measurable performance
• Bona fide factors other than sex or race, such as education, training, experience, or geographic location, provided the employer can prove these are job-related and not discriminatory

Responsibilities for Employers Under Equal Pay Laws

Employers in Maryland have a legal responsibility to:

• Regularly review pay structures and compensation practices
• Ensure pay differences are lawful and well-documented
• Avoid asking applicants about salary history, which can perpetuate past discrimination
• Allow employees to freely discuss wages without fear of discipline or retaliation

Companies that fail to comply may face civil penalties, legal claims, and reputational harm. Employers unsure of their policies should consider working with an employment lawyer to audit and correct any issues. Ignorance is not an excuse for breaking the law.

What Employees Can Do If They Suspect Wage Discrimination

If you believe you're being paid unfairly, take these steps:

1. Document your concerns, including job duties, pay history, and any relevant comparisons
2. Review your company’s compensation policy
3. Speak to HR or management if you feel comfortable, but be aware HR is there to protect the company
4. Consult an employment law attorney who can assess your situation and advise you on your rights

At Lebau & Neuworth, we regularly assist employees with wage discrimination, employment contract negotiations, and other related matters. 

If you’re unsure where to start, we provide a confidential consultation. Contact Lebau & Neuworth at (410) 296-3030 to speak with a member of our legal team.

How Maryland’s Laws Compare to Federal Equal Pay Laws

Maryland law complements and strengthens federal protections under the Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964.

Here’s how they compare:

Feature	Federal Law	Maryland Law
Protected Characteristics	Sex, gender identity, and race	Sex, gender identity, and race
Discussion of Wages	Covered under the National Labor Relations Act	Explicit protection for wage discussions
Salary History Ban	No federal ban	Prohibited in Maryland
Employer Coverage	All employer sizes must be compliant if they have more than one employee	All Maryland employers

While both Maryland and the Federal government have similar laws, Maryland's are enshrined at the state level and take it a step further. Both sets of laws prohibit retaliation and offer remedies such as back pay, reinstatement, and legal fees if a claim is successful.

When to Consult an Employment Law Attorney

If you’re facing unclear pay disparities, retaliation, or possible violations of wage equity laws, it's time to speak with an experienced equal pay act attorney. At Lebau & Neuworth, we’ve helped countless Maryland workers and employers resolve wage discrimination disputes and ensure compliance.

Equal pay laws in Maryland provide powerful protections for employees and clear obligations for employers. If you're being paid unfairly or are concerned about wage equity in your organization, it’s crucial to take advantage of the rights given to you by the state of Maryland to ensure you receive equal pay for equal work.

Whether you're negotiating a salary, reviewing compensation policies, or preparing for a potential claim, Lebau & Neuworth is here to help.

Call (410) 296-3030 or contact us online to schedule a consultation with a trusted employment law attorney.

At Lebau & Neuworth, we understand that your career is more than just a paycheck—it’s your identity, passion, and future. When workplace discrimination threatens that, the impact can be devastating. The good news is that both Maryland and federal laws offer strong protections for employees against discrimination, harassment, and retaliation.

This guide will walk you through what employment discrimination looks like, who is protected, and how Maryland’s laws safeguard workers across the state.

What Is Employment Discrimination?

Employment discrimination happens when an employer treats an employee or job applicant unfairly because of their membership in a protected class. This can occur at any stage of employment—from the hiring process to promotions, pay, or even after someone leaves a job.

Examples include:

• Being denied a job due to your race or age.
• Receiving lower pay than a colleague with the same role and experience.
• Being harassed with offensive jokes, slurs, or name-calling.
• Being terminated for discriminatory reasons.

Protected Categories Under Maryland Law

Maryland law prohibits discrimination based on:

• Race (including race-based hair discrimination)
• Color
• Religion
• Sex (including pregnancy and gender identity)
• National origin or ancestry
• Disability
• Sexual orientation
• Marital status
• Age
• Genetic information

These protections extend to applicants, employees, contractors, and even former employees. Importantly, Maryland law also prohibits retaliation against individuals who file complaints, participate in investigations, or speak out against discrimination.

Who Must Follow the Law?

Most employers in Maryland must comply with these anti-discrimination rules. However, there are some exceptions:

• Employers with fewer than 15 employees may not be subject to all provisions, but they still must provide equal pay for equal work and cannot harass employees.
• Employers with 4 or more employees cannot discriminate based on national origin.
• Religious institutions may be exempt in certain situations, particularly regarding leadership or teaching roles.

Private employers with 15+ employees, state and local governments, and labor organizations are generally covered by these laws.

Areas of Employment Covered

Maryland’s anti-discrimination protections apply to nearly all aspects of employment, including:

• Hiring and firing
• Pay and benefits
• Promotions and transfers
• Job classification and assignments
• Disability leave
• Training programs
• Recruitment and job advertisements
• Workplace facilities and conditions

Disability Discrimination & Reasonable Accommodations

In Maryland, it is illegal for an employer to discriminate against someone due to a disability, a history of disability, or even a perceived disability. Discrimination can include refusing to hire, denying promotions, harassment, or failing to provide reasonable accommodations.

Reasonable accommodations may include:

• Flexible scheduling for medical treatment.
• Assistive technology such as screen readers.
• Modifications to the hiring process to ensure accessibility.

Returning Citizens & Criminal Records

Maryland law also provides protections for applicants with criminal records. Employers with 15 or more employees cannot ask about conviction history before the first in-person interview, except for specific roles such as jobs involving vulnerable populations. Additionally, blanket bans on hiring individuals with records may be unlawful if they disproportionately impact people of color, creating what’s called a “disparate impact.”

What To Do If You Face Discrimination

If you believe you’ve experienced employment discrimination:

1. Document everything – Write down dates, times, and details of incidents.
2. Check internal policies – File a complaint with HR if possible.
3. Get legal help – An employment attorney can guide you through filing a claim with the Maryland Commission on Civil Rights (MCCR) or the Equal Employment Opportunity Commission (EEOC).

How Lebau & Neuworth Can Help

At Lebau & Neuworth, our Baltimore employment lawyers have decades of experience fighting for individuals facing discrimination, harassment, wrongful termination, and wage disputes. We believe no one should suffer unfair treatment at work—and we have the knowledge and resources to hold employers accountable.

Contact Our Baltimore Employment Lawyers Today

If you’ve been subjected to discrimination or harassment at work, don’t face it alone. Contact Lebau & Neuworth today to schedule a consultation. We proudly serve employees throughout Maryland and the DC Metro area. Together, we’ll fight for your rights and restore fairness to your workplace.

The Overtime Bonus and Benefits for Better America Act of 2025 (OBBBA) introduces changes in federal tax rules that impact many workers in Maryland and the DC area. Although it doesn't overhaul wage and hour law, it adds a federal income tax deduction for eligible overtime and tipped income between 2025 and 2028.

At Lebau & Neuworth, we’re helping employees understand how the changes law may affect their pay, taxes, and potential wage claims. Here’s what Maryland workers need to know.

Who Qualifies for the 2025 Overtime and Tip Income Deduction?

Only employees are eligible for the new tax deduction. Independent contractors and other non-employee workers do not qualify. However, if you were misclassified as an independent contractor, you may still be eligible for the deduction if your status is corrected and other criteria are met.

The income thresholds are:

• Up to $12,500 in combined overtime and/or tip income for individuals
• Up to $25,000 for married couples filing jointly
• Deduction phases out at $75,000 (individual) or $150,000 (joint) total earned income

These limits remain unchanged through 2028—there’s no adjustment for inflation.

What Counts as Deductible Overtime and Tipped Income?

The only portion of overtime income that qualifies for the deduction is the extra half-time pay required under the Fair Labor Standards Act (FLSA)—not the full hourly wage.

Eligible tips include:

• Cash and credit card tips
• Received by employees in tipped occupations as of December 31, 2024
  (e.g., servers, bartenders, barbers, hotel staff, casino dealers)

Mandatory service charges or automatic gratuities do not count. Non-cash gifts or bonuses (like gift baskets) are also excluded.

Tax Deduction Impact on Wage and Hour Settlements

If you win or settle a wage and hour claim, any awarded income—including overtime or tip pay—is still taxable. This law only affects federal income tax; payroll taxes and state income tax rules remain the same.

The deduction reduces taxable income, not the amount of tax owed directly. Its value depends on:

• Your tax bracket
• Whether you take the standard deduction or itemize
• The amount of qualifying overtime and tip income earned

The benefit may be modest unless your overtime and tip income is substantial.

How Employers Must Report Overtime and Tip Income

Starting with the 2025 tax year, employers must use a revised W-2 form that includes a separate box for overtime and tipped income. For settlements, it’s critical that agreements:

• Clearly break down each component: overtime, tips, interest, and damages
• Match reported amounts on W-2s or other tax forms

Without this breakdown, both employees and their attorneys may face IRS scrutiny. Courts may also reject settlements that don’t itemize wage-related payments, particularly in FLSA cases.

Legal Risks for Employers Who Misreport Income

OBBBA’s new requirements may present new opportunities for private causes of action under existing law against employers that misreport the following:

• Not issuing a W-2
• Omitting overtime or tip income
• Paying in cash or from personal accounts without proper tax withholding

Each willful violation may lead to a $5,000 penalty per employee, per year. These penalties apply in addition to any wage and hour claims under existing federal or state law.

What to Do If Your Overtime or Tip Pay Isn’t Reported Correctly

If you suspect your employer failed to:

• Properly report your overtime or tips
• Deduct taxes from those earnings
• Classify you correctly as an employee

You may have grounds for both a wage claim and a tax law violation claim. You can also file a complaint with the IRS or explore options under the IRS whistleblower program, which may reward reports of significant tax underpayment.

Know Your Rights and Take Action if Needed

The 2025 tax law may not change your paycheck today, but it introduces important new rules for reporting income and calculating federal tax. For employees involved in tip-heavy or overtime-heavy roles, or for those dealing with wage disputes, the changes add new reasons to ensure everything is properly documented and reported.

If you believe your employer isn’t reporting your pay correctly—or you think you’ve been misclassified—reach out to an employment attorney. At Lebau & Neuworth, we’re committed to helping employees across Maryland and the DC area protect their rights and hold employers accountable. Contact us today to schedule a consultation and learn more about your options.

At Lebau & Neuworth, we stand with Maryland workers who face unfair treatment at work. If your employer is violating labor laws—whether it’s unpaid wages, unsafe conditions, or illegal discrimination—you don’t have to stay silent. Many people don’t realize that reporting workplace violations is a protected action under federal and state law. This blog breaks down what to expect and how to take the right steps to hold your employer accountable.

Common Reasons to Report an Employer

Before taking action, it’s important to understand what types of behavior may violate labor laws. If you’re dealing with any of the following, it may be time to file a complaint:

• Unpaid wages or denied overtime
• Unsafe or hazardous working conditions
• Retaliation after reporting discrimination or harassment
• Misclassification as an independent contractor
• Violations of leave rights under FMLA

These issues often fall under the authority of the U.S. Department of Labor (DOL), the Occupational Safety and Health Administration (OSHA), or the Maryland Department of Labor.

Step-by-Step: How to Report Your Employer in Maryland

Taking action can feel overwhelming, but breaking it into steps can help. Here’s a general guide for Maryland workers thinking about filing a report.

1. Try Talking to Management First

Not every violation is done with bad intent. Sometimes supervisors or HR aren’t even aware of what’s going wrong. If you feel safe doing so, consider starting by raising your concerns internally. It might resolve the issue without needing to escalate further.

But if nothing changes—or you’re met with resistance—it’s time to move forward.

2. Start Documenting Everything

Whether or not you’ve spoken up yet, you should begin writing things down:

• Dates and times of the violation(s)
• Who was involved
• What was said or done
• Emails, texts, or written warnings

This kind of detailed record will be important if you decide to move forward with a complaint or legal action.

3. Identify the Correct Agency

Different problems go to different places. For example:

• Unpaid wages or overtime? Report to the Wage and Hour Division of the DOL.
• Unsafe conditions? That’s for OSHA.
• Issues with state-specific wage laws or licensing violations? You may need the Maryland Department of Labor.

Talking to an employment lawyer can help you figure out where your report should go.

4. File Your Complaint

In most cases, you can file a complaint online, by phone, or in person. Most federal and Maryland agencies also allow you to file anonymously—though there may be limits on how deeply they can investigate without your identity.

Here are a few ways Maryland employees commonly report workplace issues:

• Wage violations: U.S. DOL Wage & Hour Online Complaint Form
• OSHA safety issues: Call 1-800-321-6742 or file online
• State-specific concerns: Visit the Maryland Department of Labor site for local options

If you’re unsure about where to file or what to include, a lawyer can guide you through the process and help avoid mistakes.

Watch for Retaliation—And Document It

You have the legal right to report workplace violations. But that doesn’t mean every employer will respect that.

Retaliation is illegal. It can show up in subtle or direct ways, including:

• Being demoted, transferred, or isolated
• Sudden negative performance reviews
• Pay cuts or reduced hours
• Getting fired shortly after speaking up

If this starts happening, don’t wait—document everything and speak to an employment attorney immediately.

Can I File an Anonymous Complaint Against My Employer?

Yes. In many cases, especially with OSHA and the Wage and Hour Division, you can submit your complaint without sharing your name. Just know that anonymous reports may not always lead to full investigations if there’s not enough detail.

If you’re worried about retaliation or job security, an attorney can often help you file while protecting your privacy.

Don’t Wait—There Are Time Limits

Many labor law complaints must be filed within a specific time frame. For example:

• Wage claims under the Fair Labor Standards Act: Usually within 2 years
• OSHA safety complaints: Within 30 days of the unsafe act or retaliation
• FMLA violations: Usually within 2 years, but retaliation claims may be tighter

Waiting too long can mean losing your right to take legal action.

Stand Up for Your Rights with Help from a Maryland Employment Lawyer

If you're considering filing a report—or already have—Lebau & Neuworth can help protect your rights. Our team has decades of experience representing employees throughout Maryland and the DC Metro Area. We know how to deal with employers who break the law, and we’ll stand by your side every step of the way.

Don’t try to handle this alone. Contact Lebau & Neuworth today for a confidential consultation and take the first step toward workplace justice.