Are employers allowed to pay employees differently based on their experience?

Yes, employers in Maryland are allowed to pay employees differently based on their experience. The Fair Labor Standards Act (FLSA) and the Maryland Wage and Hour Law permit employers to pay employees based on experience, skill, or effort. Employers in Maryland are allowed to establish different minimum wages for different categories of employees or categories of work. They may also pay differing wages to employees of different ages, genders, races, or national origins. However, this is only allowed if the differing wages are based on a seniority, merit, or productivity system, or if they are based on the quantity or quality of work performed by the employee. Employers may also pay different wages for the same job if the wage difference is based on experience, skill, or effort. It is important to note that while employers are allowed to pay employees differently based on their experience, they must still ensure that all employees are paid the minimum wage required by law in Maryland. Further, employers must pay all employees fairly and equally, meaning they should not discriminate against any individual based on their race, gender, national origin, or any other protected class. Employers should take all reasonable steps to ensure that all employees are paid fairly and equally for their work.

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