The current minimum wage in Maryland is $11, except in Prince George’s and Montgomery counties.
The minimum wage will increase as follows for large employers with 15 or more employers over the next few years:
January 1, 2021 – $11.75
January 1, 2022 – $12.50
January 1, 2023 – $13.25
January 1, 2024 – $14.00
January 1, 2025 – $15.00
For small employers with 14 employees or fewer, the minimum wage will increase as follows:
January 1, 2020 – $11.00
January 1, 2021 – $11.60
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
The current minimum wage for tipped employees is $3.63.
Employers must ensure their tipped employees are making the regular minimum wage rate of $10.10 with the combined tipped minimum wage and their tips. If they are not, the employer must make up the difference.
If employees spend more than 20% of their time performing non-tipped duties, the employer must pay them the standard minimum wage for that time.
Mandatory service charges do not count as tips, even if the employee collects them.
Employers may also pay employees a set amount that represents the tips of the employee during a workweek.
If an employee is paid using a set tip amount system, they may assert with the Maryland Department of Labor that they really received a lower tip amount than the set amount paid.
Non-exempt employees must be paid an overtime rate of 1 ½ times the regular rate of pay for hours worked in excess of 40 in one workweek.
The federal overtime rule stipulates that the minimum salary requirement for administrative, professional, and executive exemptions is $684 per week, or $35,568 per year.
Employers must provide a 30-minute break to minor employees for every 5 consecutive hours of work.
The only break regulations Maryland requires are for the retail industry.
The Healthy Retail Employee Act requires retail establishments with 50 or more retail employees to provide the following breaks:
15-minute breaks for 4-6 consecutive hours of work
30-minute breaks for 6-8 consecutive hours of work
30-minute breaks for 8 consecutive hours of work, plus 15-minute break for every additional 4 hours of work