Bill > SB895

This bill modifies the Maryland Wage Payment and Collection Law to explicitly include governmental units as employers and expands the circumstances under which an employer can make deductions from an employee's wages. Specifically, the bill adds a new provision allowing governmental employers to make wage deductions that are expressly authorized in a compensation or benefit plan for public employees, such as a supplemental retirement plan. This means that public employers will now have more flexibility in making wage deductions, provided these deductions are clearly outlined in an officially adopted compensation or benefit plan. The other existing allowed deductions remain unchanged, which include court-ordered deductions, deductions expressly authorized in writing by the employee, deductions approved by the Commissioner, and deductions made in accordance with existing laws or governmental regulations. The bill is set to take effect on October 1, 2025, giving employers and employees time to understand and prepare for the new rules.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0895?ys=2025RS