Legislative Update – Maryland Approves Wage Increase to $15 an Hour

Legislative Update – Maryland Approves Wage Increase to $15 an Hour

On March 20, 2019, the Maryland General Assembly passed a new state minimum wage law. The law raises the state’s minimum wage for $10.10 to $15.00 by 2025.

For employers with 15 or more employees, the wage rate will increase $0.75 each year until 2024 and increase $1.00 in 2025 as follows:

  • 2020: $11.00
  • 2021: $11.75
  • 2022: $12.50
  • 2023: $13.25
  • 2024: $14.00
  • 2025: $15.00

For employers with 14 or less employees, the wage rate will increase $0.60 each year until 20225, and increase $1.00 in 2026 as follows:

  • 2020: $11.00
  • 2021: $11.60
  • 2022: $12.20
  • 2023: $12.80
  • 2024: $13.40
  • 2025: $14.00
  • 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.

Under the new legislation, the Commissioner of the Maryland Division of Labor, Licensing and Regulation will adopt regulations requiring restaurant employers that include a tip credit as part of their wages 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.

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