Hiring employees in Maryland: the 2026 compliance checklist for employers and recruiters

As of October 2026, an employer hiring in Maryland has to register for an unemployment insurance account through the Department of Labor's BEACON portal and with the FAMLI paid leave program, carry workers' compensation insurance, post a wage range and benefits description in every job posting at any employer size, wait until the first in-person interview to ask about criminal records (at 15 or more full-time employees), get every party's consent before recording an interview, have the new hire complete Form MW507, give written notice of pay rate, paydays and leave benefits at hiring, and report the hire to the Maryland New Hire Registry within 20 days. Maryland also bars salary history questions, limits credit checks, regulates drug testing laboratories and requires a signed waiver before facial recognition is used in an interview.

This page is the Maryland hub: one table with every item and its official source, then a short section on each. Where we already have a full guide to an item, the section summarizes it and links there.

The Maryland hiring checklist at a glance

What must be in place before the first Maryland hire?

Three accounts and a policy. The Department of Labor says "employers are required to register for an employer unemployment insurance account," through the BEACON portal, and that employers registering there may also need the Combined Registration Application for other state tax accounts, such as withholding. The same page adds that employers with one or more employees localized in Maryland must register with the Family and Medical Leave Insurance (FAMLI) program. The FAMLI program says contributions begin January 1, 2027, quarterly wage and hour reports start in April 2027, and benefits become available in January 2028.

Workers' compensation is required by Labor and Employment § 9-402: "each employer shall secure compensation for all covered employees," by insurance with an authorized insurer or approved self-insurance. The federal layer (an EIN, Form W-4 and Form I-9 by the third business day) applies on top.

Does a staffing or recruiting agency need a Maryland license?

Generally no. The Department of Labor's employment agency page says the Employment Agency Law was repealed effective July 1, 2013, which also ended the remaining bond; employer-paid recruiters and staffing firms were already outside it. Fee rules for agencies that charge candidates remain, and agencies that place health care staff need a separate license from the Office of Health Care Quality. See Maryland staffing agency rules.

What must a Maryland job posting include, and can you ask about pay history?

A wage range and a general description of benefits, in every posting, at any employer size. Labor and Employment § 3-304.2 has applied since October 1, 2024 to positions performed at least in part in Maryland, and if an applicant never saw a posting, the range and benefits must be disclosed before any discussion of pay. A first violation draws a compliance letter; fines start at the second. Our Maryland pay transparency guide has the detail.

The same section bars seeking an applicant's wage history, directly, through an agent or from a former employer, and relying on it to screen or set pay. The one exception runs upward: after an initial offer with compensation, the candidate may share their history to argue for more. See the Maryland salary history ban for a script.

When can you ask about criminal history or run a credit check?

At the first in-person interview, for employers with 15 or more full-time employees. Labor and Employment § 3-1503 bars requiring an applicant to disclose a criminal record, or criminal accusations, any earlier. Employers serving minors or vulnerable adults are exempt, repeat violations cost up to $300 per affected applicant, and local laws may be stricter. See Maryland's ban-the-box law.

Credit checks are restricted too. Section 3-711 bars using an applicant's credit history to deny employment or set pay or terms, with exceptions for a bona fide, substantially job-related purpose disclosed in writing, for uses after an offer that are not otherwise barred, and for FDIC-insured and some other financial employers. Our credit check laws guide lists the exceptions beside other states'.

Can you record or transcribe a job interview in Maryland?

Only with everyone's prior consent. Courts and Judicial Proceedings § 10-402 lets a participant record a call or private conversation only "where all of the parties to the communication have given prior consent." A willful violation is a felony punishable by up to five years in prison and a $10,000 fine, and the person recorded can sue. Announce any recording or transcription to the candidate and everyone on the call and get a yes first; our Maryland recording consent guide has a consent line, and recording calls across state lines covers candidates elsewhere.

Does Maryland regulate AI in hiring?

In one narrow way. Since October 1, 2020, Labor and Employment § 3-717 has barred an employer from using a facial recognition service to create a facial template of an applicant during a job interview unless the applicant first signs a written waiver in the form the statute sets. There is no broader AI hiring framework in Maryland as of October 2026. Ask any video interview vendor whether it analyzes faces before a Maryland interview. Details are in Maryland's facial recognition consent law and AI hiring laws by state.

Can you drug test applicants in Maryland?

Yes, under laboratory and notice rules. Health-General § 17-214 requires job-related testing to be done by a laboratory that holds a Maryland permit or meets the approval standard for out-of-state labs, and the employer must give the lab's name and address on request at the time of testing. Preliminary on-site screens are allowed only for job applicants and only for controlled dangerous substances, with any positive sent to a laboratory. After a confirmed positive, the employer must deliver, in person or by certified mail within 30 days of the test, a copy of the results, its written substance policy, notice of any intended action and a statement of the right to independent testing of the same sample. Our drug testing laws guide compares other states.

Does Maryland require E-Verify?

No. As of October 2026, no Maryland statute requires private employers, state or local governments, or state contractors to use E-Verify, and the General Assembly last considered a mandate in 2013. Federal contractors with the E-Verify clause must still use it. See E-Verify requirements in Maryland.

Which state withholding form does a new hire complete?

The Form MW507, Employee's Maryland Withholding Exemption Certificate, from the Comptroller, which tells the employer how much Maryland income tax to withhold. Collect it with the federal W-4 on the first day.

Which notices must a new Maryland employee get at hire?

A pay notice. Labor and Employment § 3-504(a)(1) requires each employer to tell each employee, at the time of hiring, "the rate of pay of the employee," "the regular paydays that the employer sets," and "leave benefits." From then on, each pay period comes with a statement of hours, gross and net pay and deductions, and any change to pay or paydays needs at least one pay period's notice. Put the three hiring items in the offer letter or a separate notice the employee keeps. If the interview used facial recognition, the signed § 3-717 waiver belongs in the file too.

How do you report a new hire in Maryland?

To the Maryland State Directory of New Hires. The Department of Human Services says "Employers are required by law to report newly hired or rehired employees within 20 days," and electronic reports go through mdnewhire.com. Its new hire FAQs list the core fields: the employee's name, address and Social Security number, the employer's name, address and FEIN, and the date the employee first performed services for pay. A rehire counts after a separation of at least 60 consecutive days.

The Maryland hiring steps in order

1. Before the first hire: register in BEACON (and the Combined Registration Application for withholding), register with FAMLI, and bind workers' compensation coverage.
2. Posting: a wage range and a general benefits description, at any employer size.
3. Screening: no wage history questions, no credit history unless an exception applies, and no criminal record questions before the first in-person interview at 15 or more full-time employees.
4. Interview: get every party's consent before recording or transcribing, and a signed waiver before any facial recognition.
5. Conditional offer: any drug test through a permitted or approved laboratory, with the 30-day delivery rules after a confirmed positive.
6. First day: Form I-9, W-4, MW507 and the written notice of pay rate, paydays and leave benefits.
7. Within 20 days: report the hire to the Maryland State Directory of New Hires.

Hiring in more than one state? The same checklist is available for Massachusetts, Tennessee, Indiana, Colorado, Minnesota and California.