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Maryland vs. Texas Employment

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If an employee lives and works in Maryland but the employer is in Texas, which state laws apply?

This is often a confusing topic for both employees and employers. The point to remember is that Maryland labor laws refer to the employers that conduct business in Maryland. The laws do not focus on how workers who live in Maryland are treated, but how companies in Maryland treat their workers.

Therefore, if a company operates an office or location in Maryland, the employee’s rights would be covered by the laws of Maryland. If, the business is out-of-state, say in Texas, but has no location in Maryland, then employees are covered by Texas labor laws.

To clarify, let’s examine a couple of scenarios. A hotel chain has headquarters in West Palm Beach, but operates hotels in Louisiana, Texas, Illinois, California and New York. Because the hotel has a business in each of these locations–a separate hotel–employees in these hotels are treated by the laws in each specific state. California workers would be eligible for breaks and leave that Texas workers wouldn’t be entitled to, because Texas law doesn’t require them.

The second scenario involves a reporter for a small newspaper headquartered in Tyler, Texas. The reporter is assigned to Washington, D. C, to cover Congress. The newspaper has no office or site in D. C., just the one reporter. The reporter then is considered to work for an out-of-state employer and would be covered by Texas labor laws.

The number of people employed by a company may make a difference, too. Some states don’t require companies with fewer than 10 workers to follow state laws.

Sorting out state jurisdiction can be confusing and complicated. In some cases, an attorney may need to be consulted. To begin this process, the employee or employer should contact the Department of Labor’s Wage and Hour Division in the state where the employee works. (Note that the name of the division can vary among states.) These professionals should be able to provide free advice on which state covers the worker. JH