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Maryland’s Minimum Wage is on The Rise Again

Maryland’s Minimum Wage is on The Rise Again

On Thursday, March 28, 2019, Maryland lawmakers successfully overrode a veto by Governor Larry Hogan to block a bill increasing the minimum wage in Maryland. As a result, Maryland’s minimum wage, which is currently $10.10 an hour, will increase over the next few years, eventually reaching $15 per hour. The increase will occur in the following increments, depending on the size of the employer.

For employers with 15 or more employees the minimum wage will increase as follows:

  • January 1, 2020 - $11.00 per hour
  • January 1, 2021 - $11.75 per hour
  • January 1, 2022 - $12.50 per hour
  • January 1, 2023 - $13.25 per hour
  • January 1, 2024 - $14.00 per hour
  • January 1, 2025 - $15.00 per hour

For employers with 14 or fewer employees the minimum wage will increase as follows:

  • January 1, 2020 - $11.00 per hour
  • January 1, 2021 - $11.60 per hour
  • January 1, 2022 - $12.20 per hour
  • January 1, 2023 - $12.80 per hour
  • January 1, 2024 - $13.40 per hour
  • January 1, 2025 - $14.00 per hour
  • January 1, 2026 - $14.60 per hour
  • July 1, 2026 - $15.00 per hour

This law will also allow employers to pay employees in training a training wage equal to 85% of the applicable minimum wage.

The new law also impacts workers who regularly receive tips, such as servers and bartenders. Under the new law, the Commissioner of Labor and Industry must adopt regulations requiring restaurant employers that take a tip credit to provide tipped employees with a written or electronic wage statement each pay period. That statement must show the effective hourly tip rate resulting from the employer-paid cash wages and all reported tips for tip credit hours worked each workweek in the applicable pay period.

More information about Maryland’s Minimum Wage Law and the tip credit rules can be found here. The federal Fair Labor Standards Act also has rules regarding tip credits and the federal minimum wage, located here.

Leabu & Neuworth believe that Maryland has taken a step in the right direction towards ensuring that everyone has a chance at earning a living wage.

If you think you are being paid the incorrect minimum wage, the attorneys at Lebau & Neuworth can help.  We are experienced in dealing with cases involving unpaid wages, including minimum wages, overtime wages and wages for tipped employees. For more information contact us at 888-456-2529 or lebauneuworth.com/contact-us.

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