At-will employment default rule
Maryland follows the at-will employment doctrine. In the absence of an express contract, agreement, or policy to the contrary, an employee may be hired or fired for almost any reason — whether fair or not — or for no reason at all. Either party may end the employment relationship at any time without advance notice. The at-will rule is a common-law doctrine; Maryland has not codified it in a specific statute.
Final paycheck timing — next scheduled payday rule
Maryland requires employers to pay all wages due for work performed before termination on or before the day the employee would have been paid if employment had not ended. In practice, this means the final paycheck is due on the next regularly scheduled payday, regardless of whether the separation was voluntary (resignation) or involuntary (termination for cause, layoff, or reduction in force). The statute draws no distinction based on the reason for separation.
Statutory framework
Md. Lab. & Emp. Code Ann. § 3-505(a) governs the timing. The statute states: "Each employer shall pay an employee or the authorized representative of an employee all wages due for work that the employee performed before the termination of employment, on or before the day on which the employee would have been paid the wages if the employment had not been terminated." This language ties the final-paycheck deadline to the employer's established pay schedule, not to the date of separation itself. For example, if an employer pays on the 15th and last day of each month and an employee separates on May 10, the final paycheck is due on May 15 (the next scheduled payday), not immediately on May 10.
What must be included
"Wages" under the Maryland Wage Payment and Collection Law includes all compensation due for work performed: hourly wages, salary, commissions, bonuses, and earned but unpaid overtime. The final paycheck must capture all work through the last day of employment. Section 3-505(b) creates a carve-out for accrued leave (vacation, PTO): an employer is not required to pay accrued leave at termination if (1) the employer has a written policy that limits compensation of accrued leave to employees; (2) the employer notified the employee of the leave-benefits policy at hire in accordance with § 3-504(a)(1); and (3) the employee is not entitled to payment for accrued leave under the terms of the written policy. Absent a compliant written policy stating that accrued leave is forfeited at termination, the cash value of unused, usable vacation is treated as wages and must be paid. Sick leave, by contrast, is generally not payable at termination because it is limited to use during illness or medical attention, not compensation for work performed.
No two-week notice pay requirement
Maryland does not require employers to allow employees to work through a notice period or to pay wages for a notice period not actually worked. Unless an employment contract, agreement, or policy expressly provides otherwise, an employer may accept an employee's resignation effective immediately and owes only wages for time actually worked, payable on the next scheduled payday.
Enforcement and penalties
An employer who fails to pay final wages on time is subject to enforcement under §§ 3-507, 3-507.1, and 3-507.2. An employee may file a complaint with the Maryland Commissioner of Labor or bring a civil action. Courts may award up to three times the unpaid wages, plus reasonable attorneys' fees, costs, and prejudgment interest. Criminal penalties for willful violations include fines up to $1,000 per violation under § 3-508.
Source: Md. Lab. & Emp. Code Ann. § 3-505 Source: Maryland Department of Labor — Termination Pay