Employment and Labor Laws

Maryland

Minimum Wage


Minimum wage

Maryland’s current minimum wage is $11.75 for large employers (15 or more employees) and $11.60 for small employees (14 employees or fewer), except in Montgomery counties. MD Statutes, Labor and Employment 3-413; Maryland Minimum Wage and Overtime Law

In future years, Maryland’s minimum wage will increase as follows:

Large employers (15 or more employees):

  • January 1, 2022 – $12.50
  • January 1, 2023 – $13.25
  • January 1, 2024 – $14.00
  • January 1, 2025 – $15.00

Small employers (14 employees or fewer)

  • January 1, 2022 – $12.20
  • January 1, 2023 – $12.80
  • January 1, 2024 – $1340
  • January 1, 2025 – $14.00
  • January 1, 2026 – $14.60
  • July 1, 2026 – $15.00

MD Statutes, Labor and Employment 3-413

In Montgomery County, the minimum wage is currently:

  • 51 or more employees – $14.00
  • 11 to 50 employees – $13.25
  • 10 or less employees – $13.00

Minimum Wage and Overtime Law in Montgomery County

Employers in Prince George’s County and Montgomery County will be required to pay the state minimum wage once it is greater than the local county minimum wage unless the counties continue to increase their minimum wages to exceed the state minimum wage.


Tip minimum wage

Maryland’s minimum wage for tipped employees is $3.63. MD Statutes, Labor and Employment 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 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 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 3-419(a)(2)


Subminimum wage

Employees with disabilities

Maryland minimum wage laws do not generally allow employers to pay employees with disabilities a wage rate less than the standard minimum wage. Work activity centers or other sheltered workshops may pay individuals with mental and/or physical disabilities a subminimum wage less than the standard minimum wage if:

  • the work activity center or other sheltered workshop was authorized by the Maryland Department of Labor before October 1, 2016, to pay an employee with a disability less than the minimum wage that was allowed through an acceptance of a federal certificate; and
  • the work activities center or workshop maintains the federal certificate.

The Department of Labor revoke the acceptance of the federal certificate if:

  • the US Department of Labor revokes the certificate, or
  • the Maryland Department of Labor finds good cause to revoke the certificate.

MD Statute, 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 do not allow employers to pay apprentices a subminimum wage rate lower than 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 09.12.41.22; see also MD Statutes, Labor and Employment 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.


Other State’s Minimum Wage Information

AlabamaHawaiiMassachusettsNew MexicoSouth Dakota
AlaskaIdahoMichiganNew YorkTennessee
ArizonaIllinoisMinnesotaNorth CarolinaTexas
ArkansasIndianaMississippiNorth DakotaUtah
CaliforniaIowaMissouriOhioVermont
ColoradoKansasMontanaOklahomaVirginia
ConnecticutKentuckyNebraskaNorth DakotaWashington
DelawareLouisianaNevadaOhioWest Virginia
District of ColumbiaMaineNew HampshireOklahomaWisconsin
FloridaMarylandNew JerseyNorth DakotaWyoming
Georgia

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