Maryland — Hiring & Onboarding

Federal law requires all Maryland employers to complete Form I-9, Employment Eligibility Verification, for every individual hired for employment in the United States after November 6, 1986. Employees must complete Section 1 of Form I-9 no later than the first day of employment. Employers must complete Section 2 within three business days after the employee's first day of employment by examining documentation from either List A (which shows both identity and employment authorization) or a combination of List B (identity) and List C (employment authorization). Employers must retain the completed I-9 for three years after the date of hire or one year after employment ends, whichever is later, and make forms available for inspection by authorized officials from DHS, DOL, or DOJ.

Source: 8 U.S.C. § 1324a | Form I-9 Instructions, USCIS

Maryland law requires all employers to report information on newly hired or rehired employees to the Maryland State Directory of New Hires within 20 days of the date of hire. This requirement, codified at Md. Code Ann., Lab. & Empl. § 8-626.1, applies to every employing unit operating in Maryland and supports child support enforcement, unemployment insurance administration, and fraud prevention in public assistance programs.

Covered employers. The reporting obligation applies to all employing units in Maryland. The statute defines "date of employment" as the date on which an employee commences working for an employing unit. Both new hires and rehires must be reported.

Statutorily required information. Under § 8-626.1(b), employers must report nine data elements for each new hire:

1. Employee's name
2. Employee's address
3. Employee's Social Security number
4. Date of employment
5. Date of birth (optional per the statute)
6. Whether health care benefits are available to the employee
7. Employee's starting wage or salary
8. Federal Employer Identification Number (FEIN) of the employing unit
9. State unemployment insurance account number of the employing unit

Submission methods. Employers may report by mail, magnetically, electronically, or other means determined by the Secretary of Labor. The Maryland Department of Human Services administers the reporting system through the Maryland New Hire Registry; employers can submit reports online, by mail to P.O. Box 1316, Baltimore, MD 21203-1316, or by fax.

Timing for electronic/magnetic reporting. If an employer chooses to transmit data magnetically or electronically twice per month, reports must be submitted not less than 12 days and not more than 16 days apart.

Multi-state employers. An employing unit with employees in two or more states that transmits reports magnetically or electronically may designate one state in which to file all new hire reports. Employers choosing to report to another state must notify the Maryland Secretary of Labor of the name of the state receiving the report.

Penalties. An employing unit that fails to report as required receives a written warning for the first violation. Subsequent violations are subject to a civil penalty of $20 for each month in which a violation occurs. If the failure to report results from a conspiracy between the employer and the employee to withhold the required report or to supply a false or incomplete report, the penalty increases to $500, unless the Secretary waives the penalty for cause. All violations occurring in a single month to the same employing unit constitute a single violation. An assessment is final unless the employing unit applies to the Secretary for a hearing within 15 days after mailing of the assessment.

Administrative funding. The Department of Human Services reimburses the Secretary of Labor for all costs incurred to carry out the new hire reporting program under this section.

Source: Md. Code Ann., Lab. & Empl. § 8-626.1 | Maryland New Hire Reporting, Maryland Department of Human Services