How to Hire a New Employee in Maryland (2026)
Reviewed by DocDraft Legal Team · Maryland · Last updated 2026-05-18
A new Maryland hire triggers both federal and state-level obligations from day one. In Maryland, $15.00 per hour statewide (Fair Wage Act of 2023, all employers regardless of size). The statutory anchor is section 3-413. Maryland accepts new-hire reports with the report due this is not received by maryland new hires any longer. it is not accepted either. This guide details the Maryland requirements on minimum wage, UI registration, workers' compensation, E-Verify, posters, and at-will employment.
Key Considerations
The wage floor sets the first compliance number for any Maryland hire. $15.00 per hour statewide (Fair Wage Act of 2023, all employers regardless of size). Tipped cash minimum $3.63/hour with tip-credit to $15.00. Montgomery, Howard, and Prince George's counties exceed state rate. The statutory anchor is Md. Code, Lab. & Empl. section 3-413 (Maryland Fair Wage Act of 2023).
Three liability-shaped questions follow every Maryland hire decision. Workers' comp threshold: 1 E-Verify requirement: No state-level statute. Governed by federal law (I-9 compliance). E-Verify is generally not required for private employers but may be required for some public contractors. At-will status and its exceptions: An employment relationship that can be terminated at any time by the employer, with or without cause. The employee is free to end the employment relationship at any time.
Two state-level filings open every Maryland employment relationship. First, the new-hire report under federal PRWORA: This is not received by Maryland New Hires any longer. It is not accepted either. Second, employer registration with the state UI agency via the state agency
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Relevant Documents
In Maryland the hire-side document stack runs from federal Form I-9 through Form W-4 (federal) and the Maryland state withholding addendum (where applicable), then the Maryland new-hire report (This is not received by Maryland New Hires any longer. It is not accepted either.), then workers' compensation enrollment paperwork (1). The state wage statute is Md. Code, Lab. & Empl. section 3-413 (Maryland Fair Wage Act of 2023).
Employee Handbook
A comprehensive document outlining company policies, procedures, work rules, benefits, and expectations. Provides important information to new employees and serves as a reference for all staff.
Employment Application Form
A standardized form for collecting information from job applicants including work history, education, skills, and references. This helps employers make informed hiring decisions and serves as documentation of the hiring process.
Employment Contract
A comprehensive legal agreement between employer and employee detailing all terms and conditions of employment including duties, compensation, benefits, termination procedures, and confidentiality requirements.
Employment Offer Letter
A formal document outlining the terms of employment including position, salary, benefits, start date, and other conditions. This establishes clear expectations and serves as evidence of the employment agreement.
Non-Compete Agreement
A contract that restricts an employee from working for competitors or starting a competing business for a specified period after employment ends. Enforceability varies significantly by state.
Non-Disclosure Agreement
Protects your confidential information, trade secrets, and intellectual property that you may need to share with the manufacturer during the course of your relationship. This should be signed before detailed discussions begin.
Relevant Laws
Maryland Wage Payment and Collection Law
Employers in Maryland must pay employees at least once every two weeks or twice per month. The law also requires employers to provide pay stubs and sets rules for final paychecks, which must be issued by the next regular payday after termination.
Maryland Equal Pay for Equal Work Act
Prohibits wage discrimination based on gender and gender identity. Employers cannot pay different wages to employees of different sexes or gender identities for comparable work. The law also prohibits employers from providing less favorable employment opportunities based on sex or gender identity.
Maryland Fair Employment Practices Act
Prohibits employment discrimination based on race, color, religion, ancestry or national origin, sex, age, marital status, sexual orientation, gender identity, disability, or genetic information. This applies to hiring decisions, promotions, terminations, and other employment practices.
Maryland Healthy Working Families Act
Requires employers with 15 or more employees to provide paid sick and safe leave, while smaller employers must provide unpaid leave. Employees earn at least 1 hour of leave for every 30 hours worked, up to 40 hours per year.
Maryland New Hire Reporting
Employers must report all newly hired or rehired employees to the Maryland New Hire Registry within 20 days of their hire date. This information is used primarily for child support enforcement.
Maryland Unemployment Insurance Law
Employers must pay unemployment insurance taxes on employee wages. New employers must register with the Division of Unemployment Insurance within 20 days of hiring their first employee.
Maryland Workers' Compensation Act
Employers with one or more employees must carry workers' compensation insurance to cover medical expenses and lost wages for employees who suffer work-related injuries or illnesses.
E-Verify in Maryland
While not mandatory for all employers in Maryland, state contractors with at least 100 employees are required to use E-Verify to confirm employment eligibility of newly hired employees.
Regional Variances
Major Metropolitan Areas
Montgomery County has its own minimum wage that is higher than the state minimum wage. Employers must also comply with the Montgomery County Earned Sick and Safe Leave Law, which may provide more generous sick leave than the state law. Additionally, the county has its own ban-the-box law restricting when employers can ask about criminal history.
Baltimore City has its own minimum wage requirements and a ban-the-box ordinance called the 'Criminal Record Screening Practices' law, which prohibits employers with 10 or more employees from asking about criminal history until after a conditional job offer. The city also has specific requirements for providing lactation accommodations.
Prince George's County has its own minimum wage that may exceed the state minimum. The county also has a ban-the-box law that restricts when employers can inquire about criminal history. Additionally, employers must comply with the county's earned sick and safe leave requirements.
Other Counties with Specific Employment Laws
Howard County has enacted specific human rights ordinances that may affect hiring practices, including broader anti-discrimination protections than state law. Employers should be aware of the county's Human Rights Commission which enforces these local regulations.
Anne Arundel County has specific requirements regarding equal employment opportunity and may have additional reporting requirements for certain employers. The county also has its own human relations commission that investigates discrimination complaints.
Suggested Compliance Checklist
Complete the state new-hire report
On hire days after startingMaryland's This is not received by Maryland New Hires any longer. It is not accepted either.
Set up state UI tax registration
Before first payroll days after startingIn Maryland this runs through the state agency
Handle Form I-9 employment verification at onboarding
Before first hire days after startingThe worker completes Section 1 by their first day; the employer verifies documents and signs Section 2 within 3 business days of hire.
Set up income-tax withholding paperwork
On hire days after startingFederal Form W-4 covers federal withholding; the Maryland state-tax addendum covers state withholding where Maryland runs a separate income-tax regime.
Decide on workers' compensation coverage
On hire days after startingThe Maryland rule: 1
Make the E-Verify decision
Before hire days after startingMaryland posture: No state-level statute. Governed by federal law (I-9 compliance). E-Verify is generally not required for private employers but may be required for some public contractors.
Compile the workplace-poster set required in Maryland
Before first hire days after startingMaryland Minimum Wage and Overtime Law; Equal Pay for Equal Work; Employment of Minors Fact Sheet; Lie Detector Signature Sheet; Notice to Tipped Employees; Workers' Compensation Poster; Health Insurance Coverage; To Employees (unemployment benefits eligibility); Employment Discrimination is Illegal; MOSH Poster (for employees)
Reflect the Maryland at-will rule in the offer letter and handbook acknowledgements
Before hire days after startingAn employment relationship that can be terminated at any time by the employer, with or without cause. The employee is free to end the employment relationship at any time.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Complete the state new-hire report | Maryland's This is not received by Maryland New Hires any longer. It is not accepted either. | - | On hire |
| Set up state UI tax registration | In Maryland this runs through the state agency | - | Before first payroll |
| Handle Form I-9 employment verification at onboarding | The worker completes Section 1 by their first day; the employer verifies documents and signs Section 2 within 3 business days of hire. | - | Before first hire |
| Set up income-tax withholding paperwork | Federal Form W-4 covers federal withholding; the Maryland state-tax addendum covers state withholding where Maryland runs a separate income-tax regime. | - | On hire |
| Decide on workers' compensation coverage | The Maryland rule: 1 | - | On hire |
| Make the E-Verify decision | Maryland posture: No state-level statute. Governed by federal law (I-9 compliance). E-Verify is generally not required for private employers but may be required for some public contractors. | - | Before hire |
| Compile the workplace-poster set required in Maryland | Maryland Minimum Wage and Overtime Law; Equal Pay for Equal Work; Employment of Minors Fact Sheet; Lie Detector Signature Sheet; Notice to Tipped Employees; Workers' Compensation Poster; Health Insurance Coverage; To Employees (unemployment benefits eligibility); Employment Discrimination is Illegal; MOSH Poster (for employees) | - | Before first hire |
| Reflect the Maryland at-will rule in the offer letter and handbook acknowledgements | An employment relationship that can be terminated at any time by the employer, with or without cause. The employee is free to end the employment relationship at any time. | employment-offer-letter | Before hire |
Frequently Asked Questions
$15.00 per hour statewide (Fair Wage Act of 2023, all employers regardless of size). Tipped cash minimum $3.63/hour with tip-credit to $15.00. Montgomery, Howard, and Prince George's counties exceed state rate. The statutory anchor is Md. Code, Lab. & Empl. section 3-413 (Maryland Fair Wage Act of 2023).
Maryland requires the new-hire report to be filed This is not received by Maryland New Hires any longer. It is not accepted either. The federal anchor for the report itself is the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996.
In Maryland, the E-Verify posture for private employers is: No state-level statute. Governed by federal law (I-9 compliance). E-Verify is generally not required for private employers but may be required for some public contractors. Federal contractors with a FAR E-Verify clause must still use E-Verify regardless of state law.
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