# State Personnel and Pensions (GSP)

## Title 2. State Employment Generally

### Subtitle 4. State Compensation Generally and Payroll

#### Section 2-401

(a) Except as otherwise provided by law, compensation for State employees is determined under a pay plan.

(b) The pay plans for the State Personnel Management System are described in Title 8 of this article.

#### Section 2-402

(a) Except as provided in subsection (b) of this section and notwithstanding any other law, the Central Payroll Bureau of the Office of the State Comptroller shall provide for the payment of all wages to:

  (1) each officer and employee of the State who is paid from funds appropriated by the General Assembly; and

  (2) whether or not paid from funds appropriated by the General Assembly, each officer and employee of:

    (i) the University System of Maryland;

    (ii) Morgan State University;

    (iii) St. Mary's College of Maryland; and

    (iv) Baltimore City Community College.

(b) The Central Payroll Bureau shall maintain all supporting payroll records for the payment of wages under this section.

(c)

  (1) In this subsection:

    (i) "wage" means all compensation that is due to an employee; and

    (ii) "wage" includes:

      (1) a bonus;

      (2) a commission;

      (3) a fringe benefit;

      (4) overtime wages;

      (5) premium pay; or

      (6) any other remuneration promised for service.

  (2) The Central Payroll Bureau shall:

    (i) establish regular pay periods; and

    (ii) except as provided in paragraph (3) of this subsection, pay each employee at least once every 2 weeks or twice each month.

  (3) The Central Payroll Bureau may pay an administrative, an executive, or a professional employee less frequently than required under paragraph (2)(ii) of this subsection.

(d) Each appointing authority shall accurately and timely calculate and report to the Central Payroll Bureau the payroll information for each employee.

#### Section 2-403

(a)

  (1) Subject to subsection (b) of this section, on the written request of an employee to pay dues to an organization by payroll deduction, the Central Payroll Bureau shall:

    (i) deduct the dues from the employee's wages; and

    (ii) timely pay over the amount deducted to the organization.

  (2) An employee may cancel a payroll deduction of organization dues by written notification to the Central Payroll Bureau.

(b) The Central Payroll Bureau may deduct dues under this section only for:

  (1) an organization that has a membership of 1,000 or more State employees;

  (2) an organization for which the potential field of membership is limited to fewer than 1,000 State employees, if the Governor has approved the deduction for that organization; or

  (3) an organization for which payment of dues by payroll deduction was authorized on or before June 29, 1983.

(c) The State Comptroller shall adopt regulations to carry out this section.

#### Section 2-404

(a)

  (1) This section applies to income tax that is imposed by a state other than this State.

  (2) This section does not apply to any income tax that is imposed by a political subdivision of another state.

(b) Subject to subsection (c) of this section, the Central Payroll Bureau shall:

  (1) withhold income tax imposed by another state from the wages of a State officer or employee who is a resident of that state; and

  (2) pay over the amount withheld to the appropriate tax collecting agency of that state.

(c) This section applies only if:

  (1) Maryland State income tax is not required to be withheld from the wages of the officer or employee under Title 10, Subtitle 9, Part II of the Tax - General Article; and

  (2) the state where the officer or employee resides:

    (i) withholds Maryland State income tax from the wages of Maryland residents who are employed by that state; and

    (ii) pays over the amount withheld to the Maryland State Comptroller.

#### Section 2-405

(a) In addition to the payment of wages by cash or check, the State Treasurer, on warrant of the State Comptroller, may pay a wage by direct deposit.

(b) Except as provided in subsection (c) of this section, the payment of wages by direct deposit shall be made in accordance with regulations adopted by the State Treasurer, with the concurrence of the State Comptroller.

(c) The regulations adopted by the State Treasurer under subsection (b) of this section:

  (1) may not require the payment of wages by direct deposit for any employee who:

    (i) is hired prior to the effective date of the regulations; or

    (ii) requests an exemption to the payment of wages by direct deposit; and

  (2) shall require that, when an employee is hired, the employee be notified of the right to request an exemption.

#### Section 2-406

(a) Each appointing authority shall provide each employee, at the time of hiring, notice of:

  (1) the employee's rate of pay;

  (2) the regular pay periods; and

  (3) the employee's leave benefits.

(b) The Central Payroll Bureau of the Office of the State Comptroller shall provide for each employee, for each pay period, a statement of the gross earnings of the employee and any deductions from the gross earnings.

#### Section 2-407

(a) If an appointing authority does not report payroll information in accordance with Sec. 2-402 of this subtitle, the employee or the employee's exclusive representative may initiate a grievance under the grievance procedure established under:

  (1) Title 12, Subtitle 2 of this article;

  (2) Title 13, Subtitle 2 of the Education Article;

  (3) Title 14, Subtitle 3 of the Education Article;

  (4) Sec. 14-408 of the Education Article;

  (5) Sec. 16-510(a) of the Education Article;

  (6) Sec. 2-103.4 of the Transportation Article;

  (7) any other applicable grievance procedure; or

  (8) any other applicable collective bargaining agreement.

(b)

  (1) Except as provided in paragraph (2) of this subsection, and notwithstanding any statutory or regulatory deadline in any grievance procedure listed under subsection (a) of this section, a grievance under subsection (a) of this section shall be initiated within 20 days after the failure to pay occurred.

  (2) If the failure to pay is not known to, or discovered by, the employee within 20 days after the failure to pay occurs, a grievance under subsection (a) of this section may be initiated no later than 6 months after the date on which the failure to pay occurred.

(c)

  (1) Subject to paragraphs (2) and (3) of this subsection, if a grievance is initiated in accordance with subsection (a) of this section, an employee is entitled to wages and damages unless the wage is withheld as a result of a bona fide dispute.

  (2) If the grievance was filed:

    (i) in the first 3 business days of a pay period, then damages shall start in the following regular pay period; or

    (ii) after the third business day of a pay period, then the damages shall start in the second regular pay period following the pay period in which the employee was not paid the employee's full wage.

  (3) The damages under paragraph (1) of this subsection:

    (i) may not begin until at least 1 regular pay period has elapsed since the employee was not paid the employee's full wage due for a pay period;

    (ii) shall increase per pay period by 30% of the wage that the appointing authority failed to report;

    (iii) shall continue until the pay period when the appointing authority reports the missing wages and damages, if any, to the Central Payroll Bureau; and

    (iv) may not exceed 3 times the amount of wage due that the appointing authority failed to report for a pay period.

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Md. Code Ann., State Pers. & Pens. (as displayed at mgaleg.maryland.gov, October 16, 2026)