Maryland Deductions From Pay laws & compensation compliance analysis

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. An employer may not make a deduction from the wage of an employee unless the deduction is:
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• Ordered by a court of competent jurisdiction;
• Authorized expressly in writing by the employee;
• Allowed by the Commissioner of Labor and Industry because the employee has received full consideration for the deduction; or
• Otherwise made in accordance with any law or any rule or regulation issued by a governmental unit (MD Labor and Employment Code Sec. 3-503 et seq.).
Board, lodging, or other advantage. "Board, lodging, or other advantage" means a facility or service that an employer customarily provides to an employee. Unless a collective bargaining agreement excludes board, lodging, or other advantages from the wage of an employee, an employer may include, as part of the wage, the cost that the employer incurs in providing the advantage to the employee (MD Labor and Employment Code Sec. 3-418 ).
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 that takes place because the employee has not paid his or her debts voluntarily. 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
• Served on the assignor's employer within 3 days of the signing and acknowledgment (MD Commercial Law Code ...

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