Client Alert

Maryland Opinions Clarify Meaning of Wages Under Wage Payment Act, But Raise Questions Regarding Legality of Policies that Condition Payments Upon Continued Employment

February 01, 2002

Neal D. Mollen and Dianne C. Coombs

The Maryland Courts in two recent decisions have provided Maryland employers with guidance on when promised payments to employees are considered wages that must be paid upon the termination of employment. The decisions, however, call into question the legality of many employers’ policies that condition payment of bonuses, commission, vacation pay or other fringe benefits upon continued employment.
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