Minimum Wage Legislation in Maryland

1. What is the current minimum wage in Maryland and how does it compare to federal minimum wage?

The current minimum wage in Maryland is $11.75 per hour. This is higher than the federal minimum wage of $7.25 per hour, meaning that Maryland has a higher minimum wage than the federal standard.

2. How does Maryland’s minimum wage compare to other states?
Maryland’s minimum wage is above average compared to other states. As of January 2021, only 29 states and the District of Columbia have a higher minimum wage than Maryland. However, there are also 21 states that have the same or lower minimum wage than Maryland.

3. Is there a plan to increase Maryland’s minimum wage in the future?
Yes, there is a plan to increase Maryland’s minimum wage in the future. In 2019, Governor Larry Hogan signed legislation that gradually increases the state’s minimum wage to $15 per hour by 2025 for most employees. The first increase took place on January 1, 2020, when the minimum wage was raised from $10.10 to $11 per hour. The next increase will take place on January 1, 2022, when it will rise to $12.50 per hour.

4. Are there any exceptions or exemptions to Maryland’s minimum wage?
Yes, there are some exceptions and exemptions to Maryland’s minimum wage law. For example, tipped employees can be paid a lower hourly rate as long as their tips bring their hourly earnings up to at least $11.75 per hour (the current statewide tip credit is $3.63). Additionally, small businesses with fewer than six employees can pay a lower training wage of up to 85% of the state’s current minimum wage for their first six months of employment.

Certain industries and occupations such as agricultural workers, amusement park and racetrack workers, and companions for elderly individuals may also have different minimum wages due to exemptions under state law or federal law.

5. How often does Maryland’s minimum wage increase?
Maryland’s minimum wage increases on a yearly basis. As mentioned earlier, the next scheduled increase will take place on January 1, 2022. After that, there will be annual increases of $0.50 until reaching $15 per hour in 2025, after which the minimum wage will be adjusted for inflation annually.

6. Are employers required to provide health benefits for their employees in addition to paying the minimum wage?
No, employers in Maryland are not required to provide health benefits in addition to paying the state’s minimum wage. However, some local jurisdictions within the state may have additional requirements for employers regarding health benefits.

2. Has there been any recent legislation proposed to increase the minimum wage in Maryland?


Yes, there have been multiple bills introduced in recent years to increase the minimum wage in Maryland.

In 2019, the state legislature passed the Maryland Minimum Wage Increase Act, gradually increasing the minimum wage from $10.10 per hour in 2018 to $11.00 per hour in 2020 and $15.00 per hour by 2025. This bill was vetoed by Governor Larry Hogan, but the legislature overrode the veto and it became law.

In December 2021, legislation was introduced in both chambers of the state legislature to further increase the minimum wage to $18.00 per hour by 2026. This proposal, known as the Rise Up Maryland Act of 2022, is currently under consideration.

Additionally, multiple local jurisdictions in Maryland have passed their own minimum wage increases above the state level, including Baltimore City, Montgomery County, and Prince George’s County. These local laws set higher minimum wages for employees within their respective jurisdictions.

3. Are there any exemptions or exceptions to the minimum wage law in Maryland?


Yes, there are exemptions and exceptions to the minimum wage law in Maryland. Some of these exemptions include:

1. Tipped employees: The minimum wage for tipped employees is lower than the regular minimum wage, at $3.63 per hour. However, if their tips do not bring their total hourly pay up to the regular minimum wage, the employer is required to make up the difference.

2. Seasonal workers: Seasonal workers who work for amusement or recreational establishments that operate for no more than 7 months a year may be paid 85% of the regular minimum wage.

3. Employees under 20 years old: Employees under the age of 20 can be paid a training wage of $4.25 per hour for the first 6 months of employment.

4. Agricultural workers: Agricultural workers may be paid a minimum wage that is lower than the regular state minimum wage, as long as it is not less than federal minimum wage.

5. Workers with disabilities: Workers whose disabilities limit their productivity may be paid according to special certificates issued by the Commissioner of Labor and Industry.

6. Small businesses and nonprofits: Businesses with fewer than six employees and nonprofits with an annual revenue under $250,000 may pay a lower minimum wage rate.

7. Subminimum wages: Special provisions allow certain individuals with disabilities or students enrolled in vocational programs to be paid subminimum wages.

It is important for both employers and employees to understand these exemptions and exceptions to ensure compliance with Maryland’s minimum wage laws.

4. How often does the minimum wage in Maryland get reviewed and potentially adjusted?


The Maryland minimum wage is reviewed and potentially adjusted on an annual basis.

5. Is there a difference in minimum wage for different industries or job types within Maryland?


No, there is no difference in minimum wage based on industry or job type in Maryland. The state’s minimum wage applies to all employees regardless of their occupation or industry.

6. Have there been any significant changes to the minimum wage laws in Maryland over the past decade?


Yes, there have been several significant changes to Maryland’s minimum wage laws over the past decade.

– In 2014, Maryland passed a law that gradually increased the minimum wage from $7.25 to $10.10 by 2018.
– In 2019, the state passed another law that will eventually raise the minimum wage to $15 by 2025 for most employers.
– The state also implemented a two-tiered system in which companies with more than 15 employees must pay a higher minimum wage than those with fewer employees.
– The federal minimum wage increase has not impacted Maryland’s current or future minimum wage plans.

7. How does Maryland’s minimum wage compare to neighboring states?


As of 2021, Maryland has the highest minimum wage among its neighboring states. Here is a comparison of minimum wage rates in surrounding states:

1. Pennsylvania: $7.25
2. Delaware: $9.25
3. Virginia: $9.50 (will be increasing to $12 by 2024)
4. West Virginia: $8.75
5. Ohio: $8.80 (will be increasing to $15 by 2025)
6. Washington D.C.: $15

Maryland’s current minimum wage is $11 per hour and will gradually increase to reach $15 by 2025, making it one of the highest minimum wage rates in the country.

Note: These rates may vary for certain industries or employers based on size, location, or other factors such as tipped employees or agricultural workers.

8. Is it legal for employers in Maryland to pay less than minimum wage, such as through tip credits or youth wages?

No. Employers in Maryland must pay their employees at least the state minimum wage, which is currently $11.75 per hour.

9. Are small businesses exempt from paying the state minimum wage in Maryland?


No, small businesses are not exempt from paying the state minimum wage in Maryland. All employers, regardless of size, must pay their employees at least the state minimum wage.

10. What is considered a livable or fair wage according to cost of living in Maryland?


The livable or fair wage in Maryland is estimated to be around $15.00 per hour. This is based on the average cost of living in the state, which includes housing, transportation, food, healthcare, taxes, and other expenses. However, this may vary depending on individual circumstances and location within the state. Some areas may have a higher cost of living and therefore a higher livable wage may be necessary to maintain a decent standard of living. Ultimately, a fair wage should be enough to cover basic needs such as housing, food, healthcare, and transportation without experiencing financial strain or difficulty meeting these expenses.

11. Does Maryland have a plan for gradually increasing the minimum wage towards a certain target amount?


Yes, Maryland has a plan in place to gradually increase the minimum wage towards a certain target amount. In March 2019, Governor Larry Hogan signed legislation that will raise the state’s minimum wage to $15 per hour by 2025. The plan includes incremental increases over a period of several years, beginning with an increase to $11 per hour on January 1, 2020 and reaching $15 per hour for most employers on January 1, 2025. Smaller employers with 14 or fewer employees have until January 1, 2026 to reach the $15 per hour minimum wage. There may also be additional increases beyond 2025 if economic conditions allow.

12. Are there any debates or controversies surrounding the current minimum wage laws in Maryland?

Yes, there are debates and controversies surrounding the current minimum wage laws in Maryland. Some argue that increasing the minimum wage can lead to job loss and negatively impact small businesses. Others argue that a higher minimum wage is necessary to address income inequality and provide workers with a livable wage. Additionally, there is debate about the timeline for increasing the minimum wage, with some advocating for immediate increases while others prefer incremental increases over several years. There has also been debate about potential exemptions or adjustments for certain industries or regions within the state.

13. Do employees who receive tips have a separate, lower minimum wage requirement in Maryland?


Yes, employees who regularly receive tips can be paid a lower minimum wage in Maryland. The current tipped minimum wage in Maryland is $4.00 per hour. However, if the employee’s tips do not bring their total hourly wage up to at least the standard minimum wage of $11.75 per hour, the employer is required to make up the difference.

14. Are non-profit organizations exempt from paying their employees at least state minimum wage in Maryland?


No, all employers in Maryland, including non-profit organizations, are required to pay their employees at least state minimum wage. There are certain exceptions for some types of employees, such as tipped employees and workers under the age of 18, but these exemptions still require payment of a minimum wage rate lower than the state minimum wage.

15. What are the consequences for employers who violate the state’s minimum wage laws in Maryland?


Employers who violate Maryland’s minimum wage laws may face penalties and fines, including back wages owed to the affected employees. In some cases, employers may also face criminal charges if they are found to have intentionally violated the law. Repeat offenders may face increased penalties. Additionally, employees have the right to file a complaint with the Maryland Department of Labor or file a civil lawsuit against their employer for wage violations.

16. How does overtime pay affect employees who are paid at or near the state’s minimum wage level in Maryland?


Under Maryland state law, employees who are paid at or near the state’s minimum wage level are generally entitled to receive overtime pay for any hours worked over 40 in a workweek. The current minimum wage in Maryland is $11.75 per hour (as of January 1, 2021). Therefore, employees who earn this amount or more per hour would be entitled to receive overtime pay at a rate of 1.5 times their regular hourly rate for all hours worked over 40 in a workweek.

For example, if an employee is paid $11.75 per hour and works 45 hours in a week, they would be entitled to receive their regular pay for the first 40 hours worked ($470) and overtime pay at a rate of $17.63 per hour for the additional 5 hours ($88.15), resulting in a total pay of $558.15 for the week.

If an employee is paid less than the state’s minimum wage (due to exemptions such as youth minimum wage or special minimum wage for certain types of employees), they would still be entitled to overtime pay but it would be calculated based on the actual minimum wage rate they are receiving.

It is important for employers to ensure that they are paying employees at least the state’s current minimum wage and complying with all applicable laws regarding overtime pay. Employers should also be aware that some localities in Maryland may have their own higher minimum wage rates and different rules regarding overtime pay.

17. Are there any specific industries or job types that are exempt from following state-level minimum wage laws in Maryland?


Yes, there are certain industries or job types that may be exempt from following state-level minimum wage laws in Maryland. These exemptions may include:

1. Tipped employees: Employers can pay tipped employees a lower minimum wage as long as their tips bring their earnings up to at least the regular minimum wage rate.

2. Agricultural workers: Employers engaged in agricultural labor may be exempt from paying the minimum wage to employees who qualify under the Fair Labor Standards Act (FLSA) for an exemption from federal minimum wage requirements.

3. Seasonal amusement and recreational establishments: Employees who work at seasonal amusement or recreational establishments may be exempt from the state’s minimum wage laws.

4. Domestic and home care workers: Certain domestic workers, such as au pairs, companions, live-in nannies, and home health aides, may be excluded from Maryland’s minimum wage laws.

5. Religious organizations: Employees of religious organizations may be exempt from minimum wage laws if they primarily perform religious duties.

6. Certain student workers: High school students participating in a work-training program or college students participating in a work-study program may be exempt from the state’s minimum wage laws.

7. Apprentices and learners: Full-time apprentices and learners may be paid less than the state’s minimum wage for up to 20% of their working hours.

8. Disabled workers: Workers with disabilities who are employed by designated non-profit agencies may also be paid below the regular minimum wage rate.

It is important to note that these exemptions may vary depending on individual circumstances and it is always best to consult with your employer or a labor law attorney for specific guidance.

18. If an employee works remotely for a company based outside of Maryland, do they still receive at least state-mandated minimum wage?


Yes, all employees working within the state of Maryland must receive at least the state-mandated minimum wage, regardless of where their company is based.

19. Are there any age restrictions for employees earning the minimum wage in Maryland?


Yes, all employees in Maryland must be at least 18 years old in order to receive the state minimum wage. However, there are certain exemptions for minors who are employed in certain industries or occupations such as agriculture, domestic service, and on-the-job training programs.

20. In what ways does Maryland enforce compliance with their minimum wage laws?


Maryland enforces compliance with minimum wage laws through the following measures:

1. Wage and Hour Compliance Division: The Maryland Department of Labor, Licensing and Regulation (DLLR) has a Wage and Hour Compliance Division that is responsible for enforcing state minimum wage laws. This division conducts investigations, responds to complaints, and takes legal action against employers who violate minimum wage laws.

2. Inspections and Investigations: The DLLR conducts regular inspections and investigations to ensure that employers are paying their employees at least the state minimum wage. This includes checking employment records and interviewing employees to ensure they are being paid accurately.

3. Complaints: Employees can file complaints with the DLLR if they believe their employer is not in compliance with minimum wage laws. The department will then investigate the complaint and take appropriate action if violations are found.

4. Penalties and Fines: Employers found to be in violation of Maryland’s minimum wage laws may face penalties and fines imposed by the DLLR. These fines can range from $500 for first-time offenses to $3,000 for repeated or willful violations.

5. Civil Lawsuits: In addition to enforcing labor laws through its own investigations, the DLLR also has the authority to bring civil lawsuits against employers who fail to comply with minimum wage laws.

6. Public Awareness Campaigns: The DLLR also runs public awareness campaigns to educate both employers and employees on their rights and responsibilities under Maryland’s minimum wage laws.

7. Collaboration with Other Agencies: The DLLR works closely with other agencies such as the Office of Attorney General, State’s Attorneys’ Offices, and local law enforcement to ensure compliance with minimum wage laws.

8. Publicly Available Resources: The DLLR provides publicly available resources on its website, including information about minimum wage rates, frequently asked questions, and online tools for calculating wages owed.

9. Quarterly Reports: Every quarter, the DLLR publishes a report on the number and types of complaints received, investigations conducted, and actions taken related to minimum wage violations. This helps to increase transparency and accountability in enforcement.

10. Employee Rights Poster: Maryland law requires employers to display a poster outlining employee rights under state labor laws, including minimum wage requirements. This serves as a reminder to employers and employees of their obligations and rights under the law.