Maryland Minimum Wage Laws




Minimum wage

Maryland’s current minimum wage is $8.75, except in Prince George’s and Montgomery counties where the minimum wage is $9.55.

Maryland’s minimum wage will increase over the next several years as follows:

  • July 1, 2017: $9.25
  • July 1, 2018: $10.10

MD Statutes, Labor and Employment Article 3-413; Maryland Minimum Wage and Overtime Law

The minimum wage for Prince George’s and Montgomery counties will increase over the next several years as follows:

  • October 1, 2016: $10.75
  • October 1, 2017: $11.50

Minimum Wage and Overtime Law in Prince George’s County; Minimum Wage and Overtime Law in Montgomery County



Tip minimum wage

Maryland’s minimum wage for tipped employees is $3.63. MD Statutes, Labor and Employment Article 3-419(c)

Employers may pay employees the tipped wage rate if the employees work in occupations where they regularly earn more than $30 per month in tips. They must also inform employees that they will be paid tipped wages before the employees begin working in the tipped position. To be eligible for the tipped minimum wage, employees must keep all tips earned. MD Statutes, Labor and Employment Article 3-419(a)(1)



If an employer chooses to pay qualifying employees the tipped minimum wage rate, they must also ensure that the employees are paid the standard minimum wage rate when tipped wages are combined with tips earned. The difference between the tipped minimum wage and the standard minimum wage that may be credited to earned tips is called a tip credit. If the tip credit is not sufficient to ensure tipped employees are paid the standard minimum wage, the employer must pay employees wages sufficient to cover the shortage. MD Admin Rules 09.12.41.19(D)(3)

If tipped employees work more than 20% of their time performing non-tipped duties, the employer must pay the employees the standard minimum wage for the time spent performing the non-tipped duties. MD Admin Rules 09.12.41.19(D)(4) Also, tips must be allocated to the particular workweek in which they are earned. MD Admin Rules 09.12.41.19(D)(1) Mandatory service charges do not qualify as tips, even if retained by employees. MD Admin Rules 09.12.41.19(D)(2) Additionally, an employer may pay a tipped employee a set amount for each workweek that represents the tips of the employee. When paid under a set tip amount system, an employee may assert with the Maryland Department of Labor that they actually received an amount of tips lower than the set amount paid by the employer. MD Statutes, Labor and Employment Article 3-419(b)



Tip pooling and sharing

Maryland’s minimum wage law permits tip pooling or sharing arrangements and it does not prohibit employers from requiring employees from participating in such arrangements. MD Statutes, Labor and Employment Article 3-419(a)(2)



Subminimum wage

Employees with disabilities

Maryland minimum wage laws allow the Maryland Department of Labor to authorize work activity centers or other sheltered workshops to pay individuals with mental and/or physical disabilities a subminimum wage less than the standard minimum wage. The Department of Labor may issue its own certificate of authorization or may rely on a certificate issued by the federal government. In certain situations, work activity centers or other sheltered workshops may pay disabled employees subminimum wages without a certificate, however, the exception must be approved by the Department of Labor after it conducts and investigation and hold a hearing. State issued certificate will indicate the period of time for which it is valid. MD Labor and Employment Article 3-414



Trainees

Maryland minimum wage laws do not allow employers to pay trainees a subminimum wage rate lower than the standard minimum wage.



Apprentices

Maryland minimum wage laws allow the Maryland Department of Labor employers to establish regulations that allow employers to pay apprentices a subminimum wage that is no less than 80% of the standard minimum wage.



Learners

Maryland minimum wage laws allow the Maryland Department of Labor employers to establish regulations that allow employers to pay learners a subminimum wage that is no less than 80% of the standard minimum wage.



Student learners

Maryland minimum wage laws allow employers to pay employees in work study programs less than the standard minimum wage. A work study program is a program where an individual may split normal school attendance between attending school and working. An application for an individual to participate in a work study program must be submitted to the Maryland Department of Labor by the work study program coordinator. The application must be signed by the individual and the work study-coordinator and must identify:

  • the title of the work-study coordinator;
  • the name and address of the individual;
  • the name and address of the employer;
  • the type of work that will be performed;
  • the hourly rate to be paid; and
  • how long the individual will be paid below the standard minimum wage.

MD Admin Rules 09.12.41.21; see also MD Statutes, Labor and Employment Article 3-413



Student workers

Maryland minimum wage laws do not allow employers to pay student workers a subminimum wage rate lower than the standard minimum wage unless they qualify as student learners.