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Maryland Unpaid Wage Lien Law

The Maryland Lien for Unpaid Wages is a tool that allows employees to claim a lien on the property of an employer who owes wages, without having to file a complaint in court.

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What is a lien for unpaid wages?

Sometimes, employers do not pay their employees the full amount that they have earned. If your employer owes you “wages” for work that you have performed, consider filing a “lien for unpaid wages” to force the employer to pay. 

Under Maryland’s “lien for unpaid wages” law, an employee may place a lien on an employer’s property to secure the payment of unpaid wages. As an employee, you can place an unpaid wage lien on your employer’s real property or personal property (defined below).

NOTE: An employee cannot file a request for a lien for unpaid wage for unpaid commissions. Under the law, wages do not include commissions.

The definition of an employer is broad. An "employer" includes “a person who acts directly or indirectly in the interest of another employer with an employee.” Depending on the situation, an employer can be a business or an individual within the business (such as a supervisor). An employer can also include multiple businesses and/or multiple individuals.

The lien acts as a hold on the employer’s property, preventing the employer from selling, hiding, or disposing of the property until the wages are paid, or the lien is otherwise released. If an employee successfully files a lien against an employer’s property, the employee may be able to force the employer to then sell that property and use the money from the sale to pay the employee the owed wages.

NOTE: Only consider placing a “lien for unpaid wages” against your employer’s property if you believe “in good faith” that your employer owes you wages.  If your dispute is frivolous, or you bring the claim just to get back at your employer, a court can force you to pay the employer’s attorney fees – which will not be cheap!

 

What kinds of property can an employee place a lien on?

An employee can place a lien on his or her employer’s real property or personal property.

  • Real property is unmovable property, such as a house, building, or land. 

  • Personal property is property that is moveable, such as vehicles, equipment, furniture, instruments, or collectibles.

 

How do I file a lien for unpaid wages against my employer?

There are three steps to file a lien for unpaid wages:

Step 1 - Notice

An employee (current or former) must first serve his or her employer with a “Notice to Employer of Intent to Claim Lien for Unpaid Wages.” A form is available on the Department of Labor's website. If you file against multiple people or multiple businesses, you must separately identify each person and each business in the lien, and serve everyone involved.

The notice must be served within three years of the date the wages were due and be served by:

  • personal service (learn more about service);
  • leaving a copy of the Notice at the employer's home or place of dwelling with a resident of suitable age and discretion; OR
  • mailing a copy to the employer by certified mail requesting, "Restricted Delivery-Show to whom, date, and address of delivery."

Put the notice and the proof of service in a place for safe keeping.

After service, the employer has 30 days to dispute the claim by filing a complaint in the circuit court for the county where property of an employer is located. Keep track of the 30-day period, and keep an eye out for a possible complaint because it affects if the lien is established (see below).

Read the law: Md. Code, Labor and Employment § 3-1102, § 3-1103; Courts and Judicial Proceedings § 5-101

Read the regulation: Code of Md. Regulations 09.12.39.02, 09.12.39.03

Read the rule: Md. Rule 15-1402, Rule 15-403

Step 2 - Establishment of the Lien

An unpaid wage lien is considered placed on the property or “established” in one of two ways:

1.  If the employer does not file a complaint with 30 days after receiving the employee’s “Notice to Employer of Intent to Claim Lien for Unpaid Wages,” then the lien is established. 

2.  If the employer files a complaint, then the lien must be established through a court order. 

  • The employee must prove to the Court that the wages are owed in order to get the lien. 
  • The employee should consider responding to the employer’s complaint. Employees have ten days to file a response. Employees may want to consider attaching a sworn statement (affidavit) describing the work performed and wages owed, their personal knowledge of the facts, and any proof that wages are owed.
  • Either the employee and/or the employer can request a hearing.
  • The court has 45 days from the date the employer served the complaint to decide whether the lien will be established on the property.
  • If the employer files a complaint, consider getting an attorney.

Read the rule: Md. Rule 15-1403

Step 3 - Recording the Lien

After the lien is established, the employee should record the lien. The lien becomes enforceable—meaning the employee can force payment—only after the lien is recorded.

All liens for unpaid wages must be recorded within 180 days after the lien is established.  There may be a fee and tax to record the lien. These rates differ based on the county and the value and type of property.

If the lien is on real property, the employee must record the lien by filing a “Wage Lien Statement” and include in the form:

  • A description of the property; 
  • The name of the property owner; 
  • The monetary amount of the lien; 
  • A copy of the Notice to Employer of Intent to Claim Lien for Unpaid Wages and proof of service of the notice; and 
  • A copy of a court order establishing the lien for unpaid wages if the lien for unpaid wages is established in a court.
If the lien is on personal property, the employee records the lien by filing a financing statement with State Department of Assessments and Taxation. The financing statement should include:
After the lien is recorded it becomes a “secured claim.” This means the employer cannot sell or dispose of the property until the employer pays the debt to the worker. It also means that the employee may be able to enforce the lien and force payment.
 

 

I filed the lien, what now?

After the lien is recorded and is a “secured claim,” the employee has a few options. The employee may:

  • wait for the employer to pay up; OR
  • seek to enforce the lien by forcing the employer to sell the property and pay the owed wages.

If the employee chooses to enforce the lien, consider seeking the assistance of an attorney. To enforce the lien, a petition needs to be filed in a circuit court, and there may be a hearing. An action to enforce a lien must be brought within 12 years of the date of the lien is recorded.

Read the law: Md. Code, Labor and Employment § 3-1106

Read the rule: Md. Rule 15-1406

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