Search form

Maryland Approves Minimum Wage Increase to $15 an Hour

By Larry R. Seegull, Emmett F. McGee and Judah L. Rosenblatt
  • April 1, 2019

Maryland has become the sixth state in the nation to adopt a minimum wage of $15.00 per hour. The state’s Democratic-controlled legislature overrode Republican Governor Larry Hogan’s veto on March 28, 2019. The current minimum wage in Maryland is $10.10 per hour.

Under the new legislation, businesses with at least 15 employees (Large Employers) will have to pay workers a series of increases starting on January 1, 2020, to arrive at $15.00 per hour by 2025. Businesses with fewer than 15 employees (Small Employers) will have an extra year to raise wages to $15.00 per hour.

Yearly Scheduled Increases

Large Employers will see increases to the hourly minimum wage on the following schedule:

Date Minimum Wage
January 1, 2020 $11.00
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

 

Small Employers will see increases to the hourly minimum wage on the following schedule:

Date Minimum Wage
January 1, 2020 $11.00
January 1, 2021 $11.60
January 1, 2022 $12.20
January 1, 2023 $12.80
January 1, 2024 $13.40
January 1, 2025 $14.00
January 1, 2026 $14.60
July 1, 2026 $15.00

 

Businesses may pay workers under the age of 18 a minimum wage equal to 85 percent of the state’s minimum wage.

Wage Statement for Tipped Employees

Under the new legislation, the Commissioner of the Maryland Division of Labor and Industry (DLI) will adopt regulations requiring restaurant employers that include a tip credit as part of their wages to employees to provide tipped employees with a written or electronic wage statement for each pay period. The Wage Statement must show the employees’ hourly tip rate (derived from employer-paid cash wages) plus all reported tips (for tip credit hours) worked each workweek.
 
The Commissioner will provide notification of the Wage Statement regulations on the DLI’s website.

***

The other states to have approved a $15.00 per hour minimum wage are California, Illinois, Massachusetts, New Jersey, and New York. Some local jurisdictions, including Washington, D.C. and Montgomery County in Maryland, also have adopted a $15.00 per hour minimum wage.

Jackson Lewis attorneys are available to assist employers in achieving compliance with this and other workplace requirements. Employers should regularly review their policies and practices with employment counsel to ensure they address specific organizational needs effectively and comply with applicable law.

©2019 Jackson Lewis P.C. This material is provided for informational purposes only. It is not intended to constitute legal advice nor does it create a client-lawyer relationship between Jackson Lewis and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material. This material may be considered attorney advertising in some jurisdictions. Prior results do not guarantee a similar outcome.

Reproduction of this material in whole or in part is prohibited without the express prior written consent of Jackson Lewis P.C., a law firm that built its reputation on providing workplace law representation to management. Founded in 1958, the firm has grown to more than 900 attorneys in major cities nationwide serving clients across a wide range of practices and industries including government relations, healthcare and sports law. More information about Jackson Lewis can be found at www.jacksonlewis.com.

See AllRelated Articles You May Like

December 3, 2019

Virginia Task Force Releases Recommendations to Address Worker Misclassification

December 3, 2019

Virginia Governor Ralph Northam’s Inter-Agency Taskforce on Worker Misclassification and Payroll Fraud has offered 11 recommendations in its report on employee misclassification. In August 2019, the Governor reconstituted a taskforce charged with providing recommendations on how to “measure and combat misclassification in Virginia.”... Read More

November 25, 2019

Fluctuating Workweek Pay Method Not Available in Pennsylvania, State Supreme Court Holds

November 25, 2019

In a long-awaited decision, the Pennsylvania Supreme Court has concluded that the fluctuating workweek (FWW) pay method is not a proper method of overtime pay calculation under the Pennsylvania Minimum Wage Act (PMWA). Chevalier v. General Nutrition Centers, Inc., 2019 Pa. LEXIS 6521 (Nov. 20, 2019). As a result, the Court affirmed the... Read More

November 6, 2019

Labor Department Proposes Changes to Clarify Use of FLSA’s ‘Fluctuating Workweek’ Pay Method

November 6, 2019

Persistent confusion over the Department of Labor’s (DOL) “fluctuating workweek” (FWW) pay method to satisfy employers’ obligation to pay overtime has deterred many from using it. Now, the DOL has proposed changes to clarify the pay method. Under DOL regulations on the FWW pay method, if certain conditions are met, an employer may pay... Read More

Related Practices