Maryland Deductions from Pay: What you need to know

The right of an employer to make deductions from employees' pay is limited by Maryland law. Deductions are permitted only if they are:
For a Limited Time receive a FREE HR Report on the "Critical HR Recordkeeping”.  This exclusive special report covers hiring records, employment relationships, termination records, litigation issues, electronic information issues, tips for better recordkeeping, and a list of legal requirements.  Download Now
• Made in accordance with the provisions of law (such as Social Security).
• Ordered by a court (such as garnishments); There are more details.
• Expressly authorized in writing by the employee (such as union dues, charitable contributions, or certain wage assignments).
• Allowed by the Commissioner of Labor and Industry because the employee has received a benefit for which the deductions are a reimbursement (MD Labor and Employment Code Sec. 3-503 et seq.).
An assignment of wages is an agreement between an employee and his or her creditors in which the employee voluntarily assigns the creditor a portion of his or her wages for repayment of a debt. Wage assignments differ from garnishments in that garnishment is a procedure which takes place because the employee has not paid his or her debts voluntarily. In Maryland, wage assignments in retail installment sales contracts and for the repayment of loans under $6,000 are illegal. Other assignments of wages are legal if they cover only wages that will be earned up to six months from the date they are signed. In addition, wage assignments must be:
• In writing
• Signed and acknowledged by the assignor/employee (and spouse if married) before a notary public for the county in which the assignor lives
• Entered in the county court docket by the court clerk on the same day
• Have an interest rate of no more than 6 percent
• Served on the assignor's employer within 3 days of the signing and acknowledgment (MD Commercial Law Code Sec. 15-301et seq.)
Employers must furnish employees with a statement ...

>> Read more about Deductions from Pay

Related Topics

More on this topic:

State Requirements

National | Alabama | Alaska | Arizona | Arkansas | California | Colorado | Connecticut | Delaware | District of Columbia | Florida | Georgia | Hawaii | Idaho | Illinois | Indiana | Iowa | Kansas | Kentucky | Louisiana | Maine | Maryland | Massachusetts | Michigan | Minnesota | Mississippi | Missouri | Montana | Nebraska | Nevada | New Hampshire | New Jersey | New Mexico | New York | North Carolina | North Dakota | Ohio | Oklahoma | Oregon | Pennsylvania | Rhode Island | South Carolina | South Dakota | Tennessee | Texas | Utah | Vermont | Virginia | Washington | West Virginia | Wisconsin | Wyoming |

Maryland Deductions from Pay Resources

Deductions from Pay Products

Free Special Reports
Get Your FREE HR Management Special Report. Download Any One Of These FREE Special Reports, Instantly!
Featured Special Report
Claim Your Free Copy of Critical HR Recordkeeping

Record retention is complex and time consuming. However, in addition to complying with various federal and state laws, keeping good, well-organized records can be very helpful in documenting and supporting an organization’s employment actions.
Download Now!

This special report will discuss how you can ensure your records are in good order, and establish a record-retention policy.

Topics covered:
1. Hiring Records
2. Employment Relationships
3. Termination Records
4. Litigation Issues
5. Electronic Information Issues
6. Tips for Better Recordkeeping
7. A List of Legal Requirements

Make sure you have the information you need to know to keep your records in order.