Maryland's Aggressive New Pay Law Goes Into Effect on October 1st: 5 Key Changes
September 26, 2016
On May 19, 2016, Maryland Governor Larry Hogan signed The Equal Pay for Equal Work Act of 2016, bolstering the state’s protections against pay discrimination. Maryland will officially join the ranks of New York and California when this aggressive new pay law goes into effect on October 1, 2016.We have identified five key aspects of the new law that employers with locations in Maryland should bear in mind:
- Maryland has prohibited pay differentials based upon an employee’s gender identity.
- It is no longer just about compensation. In addition to protecting against discrimination in pay, the new law forbids employers from providing “less favorable employment opportunities” based on employee’s sex or gender identity. This precludes employers from : assigning or directing an employee into a less favorable career track or position, if offered; failing to provide information about promotions or advancement in the full range of career tracks offered by employer; and limiting or depriving employee of employment opportunities which would otherwise be available to employee but for employee’s sex or gender identity.
- Employees do not have to work in same establishment to be comparators. Maryland has expanded the pool of comparators beyond the “establishment” where an employee works to include employees who “provide work of a comparable character or work on the same operation, in the same business or of the same type” for the employer at workplaces in the same county of the state.
- Maryland has instituted strong pay transparency and anti-retaliation provisions aimed at shielding employee discussions around pay. Employers may not prevent employees from (i) inquiring about, discussing, or disclosing wages to other employees; (ii) questioning employers about their wages; and (iii) aiding or encouraging other employees to exercise their rights under the new law. Employers are prohibited from taking adverse action against employees for engaging in any of the aforementioned activities; nor may employers enter into agreements, which require employees to waive their rights to discuss or disclose wages.
- Employers must institute written policies in order to take advantage of the law’s affirmative defense. Under the law, employers may issue written policies prohibiting certain employees from discussing or discovering the wages of another employee without that employee’s permission (e.g., supervisors and those whose jobs directly reveals such information, such as payroll and HR, where the wage information was learned in the employee’s performance of his/her job duties came from the employee’s performance of his/her job duties). Employers may also establish reasonable workday limitations of the time, place and manner for employee inquiries and discussions about pay, provided that the limitations are in writing and consistent with standards, yet to be issued by Maryland Equal Pay Commission, and with state and federal laws, including the National Labor Relations Act. These written policies must be distributed to employees in order for an employer to utilize an employee’s failure to comply with these restrictions as an affirmative defense.
In addition to New York, California, and now Maryland equal pay laws, employers should also be aware of a sweeping new pay equity legislation, which was recently enacted in Massachusetts. When that law goes into effect in July 2018, Massachusetts will become the first state to restrict employers from requiring that applicants disclose prior salary history.
Next Steps
Given these tough new state laws, and the focus on compensation collection and enforcement efforts by the Equal Employment Opportunity Commission and the Office of Contract Compliance Programs, employers should consider taking the following steps to ensure that their compensation practices and pay differences are lawful and defensible.
- Conduct a comprehensive compensation compliance audit that includes: identifying the factors that influence compensation, conducting a statistical analysis of similarly situated employees, and thoroughly review their compensation policies, practices and procedures. The assessment should be conducted under the guidance of experienced counsel in order to protect audit results under the attorney-client privilege;
- Train all personnel involved in compensation decisions (hiring and raises) on the new legal requirements and standards; and
- Ensure that all supervisors and HR understand the new pay transparency and anti-retaliation protections.
Please contact your FortneyScott attorney if you have specific questions about the new Maryland equal pay law, or if we can assist you with complying with the new equal pay laws and regulations.
The U.S. Department of Labor has officially lifted the abeyance on OFCCP’s enforcement of Section 503 of the Rehabilitation Act (503) and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) via Secretary's Order 08-2025 , issued by Secretary Lori Chavez-DeRemer. This development follows the January 2025 revocation of Executive Order (EO) 11246 through the Trump Administration's EO 14173, which fundamentally altered OFCCP’s enforcement priorities and led to the temporary pause of Section 503 and VEVRAA activities via Secretary’s Order 03-2025. Key Takeaways for Employers Immediate Resumption of Investigations: OFCCP will begin processing all Section 503 and VEVRAA complaints held during the abeyance. New complaints filed during the suspension period will also move forward. Administrative Closure of Compliance Reviews: Due to historical entwinement of EO 11246 review formats with Section 503/VEVRAA, all pending compliance reviews are being administratively closed. Formal notifications will be issued to affected contractors. AAP Certification Still Closed: Despite the resumed enforcement, the affirmative action program (AAP) certification portal remains closed . Employers are still obligated to maintain compliance with Section 503 and VEVRAA regulations. VAHBP Enforcement Moratorium Extended: Providers under the Veterans Affairs Health Benefits Program (VAHBP) remain exempt from affirmative action enforcement under Section 503 and VEVRAA through May 7, 2027 . They are still subject to nondiscrimination complaint investigations. What Employers Should Do Now Watch for formal notice of compliance review closures and updates from OFCCP. Monitor communications from OFCCP and the Department of Labor for further guidance. Reach out to FortneyScott for assistance to: Review existing Section 503 and VEVRAA policies and documentation. Ensure ongoing compliance with regulatory obligations, such as preparation of 503 and VEVRAA AAPs.
The DOL is proposing to rescind the regulations implementing EO 11246 in addition to revising its regulations for Section 503 and VEVRAA in response to President Trump’s EO 14173 and EO 14219 . Proposed Changes to Section 503 Regulations The Trump Administration has proposed significant changes to the Section 503 regulations applicable to federal contractors. Specifically, the proposal: Eliminates 41 C.F.R. § 60-741.42, which requires contractors to invite applicants and employees to self-identify disability status. The Administration asserts that such data collection is inconsistent with the ADA, notwithstanding EEOC guidance affirming its permissibility. Removes the requirement under 41 C.F.R. § 60-741.44(k) for contractors to document data collection analysis , while retaining the annual assessment obligation for evaluating outreach and recruitment efforts under 41 C.F.R. § 60-741.44(f)(3). Rescinds the 7% utilization goal in 41 C.F.R. § 60-741.45 , citing its reliance on revoked EO 11246 job group structures. The proposal makes clear it will not impose a substitute analysis, referencing the directive in EO 14219 to reduce regulatory burdens. Removes cross-references and provisions tied to EO 11246 , while adding provisions for administrative enforcement proceedings under 41 C.F.R. § 60-741.65. These changes reflect a broader deregulatory approach and raise significant compliance and policy considerations for federal contractors. Proposed Changes to VEVRAA The proposed changes to VEVRAA are simply to remove cross references and language citing EO 11246 authority and to add administrative enforcement proceeding provisions to 41 C.F.R. § 60-300. VEVRAA proposal retains both the self-identification requirements for protected veterans and the hiring benchmark (at this point, OFCCP has not updated its hiring benchmark for 2025). Conclusion Despite the impending elimination of OFCCP—set for October 1, 2025—the comment periods for all three regulatory developments end September 2, 2025. OMB will then have an additional 30-day comment period. If you are interested in filing comments to these proposed changes, please let FortneyScott know by reaching out to your FortneyScott attorney or sending us an email at info@fortneyscott.com . In the meantime, FortneyScott will continue to monitor these and other developments related to EO 14173.
The OFCCP has made available for public review proposed changes to the regulations under VEVRAA and Section 503 . It has also released a proposal to eliminate the regulations tied to Executive Order 11246. These proposed rules are expected to be officially published in the Federal Register tomorrow, initiating a 60-day period for public comment. The move to rescind the Executive Order 11246 regulations follows the recent revocation of that order through Executive Order 14173. Changes suggested for the VEVRAA regulations appear to be minimal and would not significantly alter compliance obligations for contractors. In contrast, the proposed updates to the Section 503 rules would eliminate the 7 percent utilization goal by job group and the requirement that applicants/employees self-identify as disabled while retaining the annual outreach and recruitment assessment. Final rules are not anticipated for several months, and in the meantime, the current VEVRAA and Section 503 regulations remain in effect. The proposed rules will be published in the Federal Register tomorrow : https://www.federalregister.gov/public-inspection/current#regular-filing-federal-contract-compliance-programs-office
On Friday, June 27, 2025, OFCCP Director Catherine Eschbach issued a letter inviting federal contractors to voluntarily submit information to OFCCP detailing contractors’ efforts to “wind down compliance with the EO 11246 regulatory scheme and ensure full compliance with the Nation’s non-discrimination laws.” Join David Fortney, Liz Bradley and Nita Beecher at 1:00 pm ET on Thursday, July 10th as they analyze Director Eschbach’s letter and provide practical insights to assist federal contractors in deciding whether or how to respond to this request. Specifically, they will discuss: The authority of OFCCP to collect this information. How OFCCP might use the submitted data. Whether submissions are likely to be subject to FOIA. Potential implications for contractors who choose to submit or not to submit data. Practical recommendations for crafting an effective response. To register for this webinar, click here . For additional information, please visit FortneyScott’s website , including recent developments and FortneyScott’s webinars and podcasts .
On Friday, June 27, 2025, OFCCP Director Catherine Eschbach issued a letter inviting federal contractors to voluntarily share with OFCCP how they have implemented program changes under Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity . Participation is entirely at the contractor’s discretion, including the content and format of such information and contractors have 90 days from date of the letter, or until Sept 25, to submit info into contractor portal. Submission instructions are available on OFCCP’s Contractor Portal . Director Eschbach’s letter further encourages federal contractors to provide: Confirmation that they have reviewed their EO 11246 affirmative action efforts; An assessment of whether employment or recruitment practices require modification; and If so, a description of the changes made and the steps taken to modify those practices. The letter then provides a list of the type of employment practices federal contractors should consider providing, to include: Trainings, sponsorship programs, leadership development programs, educational funding, or other privileges of employment available only to employees of a certain race or sex; Placement goals based on race or sex; Ratings by diversity organizations that graded employers on factors designed to promote the rise of non-white, non-male employees; Using applicants’ or employees’ participation in race- or sex-related (internal or external) groups or organizations as a “plus factor” or proxy for race or sex in employment and hiring decisions; Tying executive compensation to meeting race- or sex-based hiring, promotion, retention, representation, or other employee-demographic-related goals; Mandating courses, orientation programs, or trainings designed to emphasize and focus on racial stereotypes; and Encouraging employees to make recruitment efforts to or employment referrals of certain candidates based on race or sex. Director Eschbach concludes by recommending federal contractors consult the recent technical guidance by EEOC on what constitutes unlawful discrimination at work. FortneyScott is reaching out to DOL officials for further information. In the meantime, FortneyScott is actively advising clients on how to respond to this voluntary request. If you have any questions, please reach out to your FortneyScott attorney.
Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity , requires federal contractors to certify that their DEI programs comply with federal anti-discrimination laws. While some prime contractors have attempted to “flow down” this certification requirement to subcontractors, EO 14173 does not mandate such action. At present, subcontractors are not obligated to accept these flowed-down provisions. Additionally, under Executive Order 14275, Restoring Common Sense to Federal Procurement , amendments to the FAR/DFARS are expected, though no formal proposals have been issued to date. FortneyScott is closely tracking these developments and continues to advise clients as guidance evolves. For further information, please contact your FortneyScott attorney.
The U.S. Department of Labor has officially lifted the abeyance on OFCCP’s enforcement of Section 503 of the Rehabilitation Act (503) and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) via Secretary's Order 08-2025 , issued by Secretary Lori Chavez-DeRemer. This development follows the January 2025 revocation of Executive Order (EO) 11246 through the Trump Administration's EO 14173, which fundamentally altered OFCCP’s enforcement priorities and led to the temporary pause of Section 503 and VEVRAA activities via Secretary’s Order 03-2025. Key Takeaways for Employers Immediate Resumption of Investigations: OFCCP will begin processing all Section 503 and VEVRAA complaints held during the abeyance. New complaints filed during the suspension period will also move forward. Administrative Closure of Compliance Reviews: Due to historical entwinement of EO 11246 review formats with Section 503/VEVRAA, all pending compliance reviews are being administratively closed. Formal notifications will be issued to affected contractors. AAP Certification Still Closed: Despite the resumed enforcement, the affirmative action program (AAP) certification portal remains closed . Employers are still obligated to maintain compliance with Section 503 and VEVRAA regulations. VAHBP Enforcement Moratorium Extended: Providers under the Veterans Affairs Health Benefits Program (VAHBP) remain exempt from affirmative action enforcement under Section 503 and VEVRAA through May 7, 2027 . They are still subject to nondiscrimination complaint investigations. What Employers Should Do Now Watch for formal notice of compliance review closures and updates from OFCCP. Monitor communications from OFCCP and the Department of Labor for further guidance. Reach out to FortneyScott for assistance to: Review existing Section 503 and VEVRAA policies and documentation. Ensure ongoing compliance with regulatory obligations, such as preparation of 503 and VEVRAA AAPs.
The DOL is proposing to rescind the regulations implementing EO 11246 in addition to revising its regulations for Section 503 and VEVRAA in response to President Trump’s EO 14173 and EO 14219 . Proposed Changes to Section 503 Regulations The Trump Administration has proposed significant changes to the Section 503 regulations applicable to federal contractors. Specifically, the proposal: Eliminates 41 C.F.R. § 60-741.42, which requires contractors to invite applicants and employees to self-identify disability status. The Administration asserts that such data collection is inconsistent with the ADA, notwithstanding EEOC guidance affirming its permissibility. Removes the requirement under 41 C.F.R. § 60-741.44(k) for contractors to document data collection analysis , while retaining the annual assessment obligation for evaluating outreach and recruitment efforts under 41 C.F.R. § 60-741.44(f)(3). Rescinds the 7% utilization goal in 41 C.F.R. § 60-741.45 , citing its reliance on revoked EO 11246 job group structures. The proposal makes clear it will not impose a substitute analysis, referencing the directive in EO 14219 to reduce regulatory burdens. Removes cross-references and provisions tied to EO 11246 , while adding provisions for administrative enforcement proceedings under 41 C.F.R. § 60-741.65. These changes reflect a broader deregulatory approach and raise significant compliance and policy considerations for federal contractors. Proposed Changes to VEVRAA The proposed changes to VEVRAA are simply to remove cross references and language citing EO 11246 authority and to add administrative enforcement proceeding provisions to 41 C.F.R. § 60-300. VEVRAA proposal retains both the self-identification requirements for protected veterans and the hiring benchmark (at this point, OFCCP has not updated its hiring benchmark for 2025). Conclusion Despite the impending elimination of OFCCP—set for October 1, 2025—the comment periods for all three regulatory developments end September 2, 2025. OMB will then have an additional 30-day comment period. If you are interested in filing comments to these proposed changes, please let FortneyScott know by reaching out to your FortneyScott attorney or sending us an email at info@fortneyscott.com . In the meantime, FortneyScott will continue to monitor these and other developments related to EO 14173.
The OFCCP has made available for public review proposed changes to the regulations under VEVRAA and Section 503 . It has also released a proposal to eliminate the regulations tied to Executive Order 11246. These proposed rules are expected to be officially published in the Federal Register tomorrow, initiating a 60-day period for public comment. The move to rescind the Executive Order 11246 regulations follows the recent revocation of that order through Executive Order 14173. Changes suggested for the VEVRAA regulations appear to be minimal and would not significantly alter compliance obligations for contractors. In contrast, the proposed updates to the Section 503 rules would eliminate the 7 percent utilization goal by job group and the requirement that applicants/employees self-identify as disabled while retaining the annual outreach and recruitment assessment. Final rules are not anticipated for several months, and in the meantime, the current VEVRAA and Section 503 regulations remain in effect. The proposed rules will be published in the Federal Register tomorrow : https://www.federalregister.gov/public-inspection/current#regular-filing-federal-contract-compliance-programs-office
On Friday, June 27, 2025, OFCCP Director Catherine Eschbach issued a letter inviting federal contractors to voluntarily submit information to OFCCP detailing contractors’ efforts to “wind down compliance with the EO 11246 regulatory scheme and ensure full compliance with the Nation’s non-discrimination laws.” Join David Fortney, Liz Bradley and Nita Beecher at 1:00 pm ET on Thursday, July 10th as they analyze Director Eschbach’s letter and provide practical insights to assist federal contractors in deciding whether or how to respond to this request. Specifically, they will discuss: The authority of OFCCP to collect this information. How OFCCP might use the submitted data. Whether submissions are likely to be subject to FOIA. Potential implications for contractors who choose to submit or not to submit data. Practical recommendations for crafting an effective response. To register for this webinar, click here . For additional information, please visit FortneyScott’s website , including recent developments and FortneyScott’s webinars and podcasts .
On Friday, June 27, 2025, OFCCP Director Catherine Eschbach issued a letter inviting federal contractors to voluntarily share with OFCCP how they have implemented program changes under Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity . Participation is entirely at the contractor’s discretion, including the content and format of such information and contractors have 90 days from date of the letter, or until Sept 25, to submit info into contractor portal. Submission instructions are available on OFCCP’s Contractor Portal . Director Eschbach’s letter further encourages federal contractors to provide: Confirmation that they have reviewed their EO 11246 affirmative action efforts; An assessment of whether employment or recruitment practices require modification; and If so, a description of the changes made and the steps taken to modify those practices. The letter then provides a list of the type of employment practices federal contractors should consider providing, to include: Trainings, sponsorship programs, leadership development programs, educational funding, or other privileges of employment available only to employees of a certain race or sex; Placement goals based on race or sex; Ratings by diversity organizations that graded employers on factors designed to promote the rise of non-white, non-male employees; Using applicants’ or employees’ participation in race- or sex-related (internal or external) groups or organizations as a “plus factor” or proxy for race or sex in employment and hiring decisions; Tying executive compensation to meeting race- or sex-based hiring, promotion, retention, representation, or other employee-demographic-related goals; Mandating courses, orientation programs, or trainings designed to emphasize and focus on racial stereotypes; and Encouraging employees to make recruitment efforts to or employment referrals of certain candidates based on race or sex. Director Eschbach concludes by recommending federal contractors consult the recent technical guidance by EEOC on what constitutes unlawful discrimination at work. FortneyScott is reaching out to DOL officials for further information. In the meantime, FortneyScott is actively advising clients on how to respond to this voluntary request. If you have any questions, please reach out to your FortneyScott attorney.
Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity , requires federal contractors to certify that their DEI programs comply with federal anti-discrimination laws. While some prime contractors have attempted to “flow down” this certification requirement to subcontractors, EO 14173 does not mandate such action. At present, subcontractors are not obligated to accept these flowed-down provisions. Additionally, under Executive Order 14275, Restoring Common Sense to Federal Procurement , amendments to the FAR/DFARS are expected, though no formal proposals have been issued to date. FortneyScott is closely tracking these developments and continues to advise clients as guidance evolves. For further information, please contact your FortneyScott attorney.
Special guest, Victoria Lipnic , former EEOC Commissioner and Acting Chair who now is a Partner at Resolution Economics and leader of the firm’s Human Capital Strategy Group, joins FortneyScott attorneys, David Fortney and H. Juanita Beecher, to discuss the latest EEOC developments. Under the leadership of President Trump’s Acting Chair Andrea Lucas, the EEOC has been busy implementing the Administration’s agenda. This has included President Trump’s Executive Orders announcing forebearance on disparate impact enforcement, focusing on “Illegal DEI,” removing guidance and materials relating to gender identity, and focusing on religious discrimination, anti-Semitism, and anti-Christian bias. We also will discuss the status of the two announced nominations for EEOC commissioners and staffing of critical positions at the agency.
The U.S. Department of Labor (DOL) has launched a new Opinion Letter Program , expanding its compliance assistance for workers, employers, and stakeholders seeking clarity on federal labor laws. This initiative enhances guidance on workplace legal requirements by providing official interpretations from five key enforcement agencies. FortneyScott has extensive experience securing opinion letters, and the Firm has successfully obtained significant DOL opinion letters in the past. What Employers Need to Know Through this program, employers can receive official written interpretations of labor laws as they apply to specific workplace situations. The following agencies will issue tailored guidance: Wage and Hour Division (WHD): Provides opinion letters on wage, hour, and employment law matters. Occupational Safety and Health Administration (OSHA): Issues letters of interpretation on workplace safety regulations. Employee Benefits Security Administration (EBSA): Publishes advisory opinions and information letters on employee benefits compliance. Veterans’ Employment and Training Service (VETS): Releases opinion letters related to veteran employment laws. Mine Safety and Health Administration (MSHA): Offers compliance assistance through the new MSHA Information Hub, featuring regulatory updates and training resources. Why It Matters Opinion letters provide clarity, consistency, and transparency in federal labor law enforcement. Employers can use them as reliable legal guidance to ensure adherence to wage, benefits, and safety requirements, reducing the risk of noncompliance and potential litigation. Deputy Secretary of Labor Keith Sonderling emphasized that “opinion letters are an important tool in ensuring workers and businesses alike have access to clear, practical guidance.” Next Steps for Employers To leverage this resource, employers can: Explore previously issued guidance . Contact your FortneyScott attorney should you need any assistance in submitting a request for an opinion letter or compliance guidance. This program presents a valuable opportunity for businesses to navigate complex employment laws with authoritative insights from federal agencies. Employers should consider requesting opinion letters when facing regulatory uncertainties to strengthen compliance efforts
On Thursday, June 5, 2025, from 2:00 to 3:00 p.m. ET, FortneyScott will host a webinar entitled, EEOC Update in Trump 2.0 . Join us for this practical, timely discussion designed to help HR professionals, in-house counsel, and business leaders navigate these challenging areas. As a special guest, Victoria Lipnic , former EEOC Commissioner and Acting Chair who now is a Partner at Resolution Economics and leader of the firm’s Human Capital Strategy Group, will join FortneyScott attorneys, David Fortney and H. Juanita Beecher, to discuss the latest EEOC developments. Under the leadership of President Trump’s Acting Chair Andrea Lucas, the EEOC has been busy implementing the Administration’s agenda. This has included President Trump’s Executive Orders announcing forebearance on disparate impact enforcement, focusing on “Illegal DEI,” removing guidance and materials relating to gender identity, and focusing on religious discrimination, anti-Semitism, and anti-Christian bias. We also will discuss the status of the two announced nominations for EEOC commissioners and staffing of critical positions at the agency. To register for this webinar, click here . For additional information, please visit FortneyScott’s website , including recent developments and FortneyScott’s webinars and podcasts .
On May 19, 2025, the Department of Justice (DOJ) announced a new Civil Rights Fraud Initiative, which will utilize the False Claims Act (FCA) to investigate and, as appropriate, pursue claims against any recipient of federal funds that knowingly violates federal civil rights laws. Violations of the FCA can result in treble damages and significant penalties. Deputy US Attorney General Todd Blanche issued a memorandum instructing DOJ attorneys to file FCA claims against recipients of federal money if a recipient knowingly violates civil right laws and falsely certifies compliance with Title IV, Title VI, and Title IX of the Civil Rights Acts of 1964. The memorandum states that the FCA is also implicated whenever federal funding recipients and contractors certify compliance with civil rights laws while knowingly engaging in racist preferences, mandates, policies, programs and activities, including through diversity, equity, and inclusion (DEI) programs that assign benefits or burdens on race, ethnicity, or national origin. The memorandum provided the following example as violating the FCA: Accordingly, a university that accepts federal funds could violate the False Claims Act when it encourages antisemitism, refuses to protect Jewish students, allows men to intrude into women’s bathrooms, or requires women to compete against men in athletic competitions. The Initiative will utilize the FCA to investigate and pursue claims, and will be co-led by the DOJ’s Civil Division’s Fraud Section and the Civil Rights Division. Finally, the DOJ strongly encourages private parties “to protect the public interest by filing lawsuits and litigating claims” under the FCA—reminding the public that successful FCA claims will result in the reporting party receiving a share of the financial damages that are imposed again FCA violators. FortneyScott will continue to monitor these developments. If you have any questions, please reach out to your FortneyScott attorney.
