Bill
SB 895
Subject Maryland government employers to wage-deduction rules and allow deductions expressly authorized in adopted public-employee compensation or benefit plans.
Status: Withdrawn by sponsor (Feb 24, 2025)
Introduced: Late January 2025 (read first time Jan. 28, 2025)
Sponsor: Senator Love
Bill location amended: Article — Labor and Employment, §3‑503 (Maryland Wage Payment and Collection Law)
Effective date if enacted: October 1, 2025
Purpose and intent
- To make the Maryland Wage Payment and Collection Law explicitly apply certain limits on wage deductions to governmental employers and to permit a government employer to deduct wages from a public employee when the deduction is expressly authorized in a compensation or benefit plan adopted by the governmental unit.
Key provisions
- Expands the definition of “employer” in §3‑503 to expressly include a “governmental unit.” This makes the statutory rules governing permitted wage deductions apply to public employers.
- Clarifies permitted deductions from an employee’s wages. Under current law, deductions are allowed only when:
1. ordered by a court;
2. expressly authorized in writing by the employee;
3. allowed by the Commissioner because the employee received full consideration for the deduction; or
4. otherwise required by law or regulation.
- Adds a new explicit allowance permitting a governmental employer to make a deduction if it is “authorized expressly in a compensation or benefit plan for public employees, such as a supplemental retirement plan, adopted by a governmental unit.”
- Retains the other permitted deduction categories (court order, employee written authorization, Commissioner approval, or other law/regulation).
Who is affected
- Governmental employers in Maryland (state agencies, counties, municipalities, school districts, and other governmental units) and their public employees.
- Public-sector collective bargaining units and benefits administrators, because deductions tied to adopted compensation/benefit plans (for example, retirement or deferred compensation plans) are explicitly authorized.
- Payroll and human resources operations within governmental employers (potential need to update policy, documentation, and payroll systems).
Potential impacts and considerations
- Legal/administrative: The bill would limit governmental employers’ ability to make unilateral or ad hoc wage deductions unless authorized by law, employee consent, Commissioner approval, or an employer-adopted benefit/compensation plan. Employers would need to ensure formal plan adoption and clear employee notice/authorization procedures.
- Labor relations: Making plan-authorized deductions explicit could shift negotiation focus to the adoption or amendment of compensation/benefit plans in jurisdictions where bargaining is active.
- Employee protections: The change clarifies and arguably strengthens protections against unauthorized wage deductions by public employers.
- Fiscal: No direct fiscal impact stated; administrative costs could arise from updating payroll processes and maintaining documentation for permitted deductions.
Procedural history (selected)
- Read first time Jan. 28, 2025; assigned to Finance Committee.
- Testimony/hearings were scheduled/held in March 2025.
- Withdrawn by sponsor on Feb. 24, 2025 (bill did not advance to enactment).
Note: This summary focuses on the Maryland bill titled “Employment — Wages — Deductions for Public Employees.” Related or identically numbered bills in other jurisdictions (MI, IL) concern different topics and are not covered here.
Compiled from official sources — confirm details with the bill’s official record.
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