Overview: Maryland has enacted legislation (Senate Bill 280) that will increase the state’s minimum wage in several phases.
Effective Date: See below
Details:
Minimum Wage:
The scheduled increases will differ depending on the size of the employer.
Small Employers:
For employers with fewer than 15 employees, the minimum wage will increase as follows:
· $11.00 per hour on January 1, 2020
· $11.60 per hour on January 1, 2021
· $12.20 per hour on January 1, 2022
· $12.80 per hour on January 1, 2023
· $13.40 per hour on January 1, 2024
· $14.00 per hour on January 1, 2025
· $14.60 per hour on January 1, 2026
· $15.00 per hour on July 1, 2026
Larger Employers:
For employers with 15 or more employees, the minimum wage will increase as follows:
· $11.00 per hour on January 1, 2020
· $11.75 per hour on January 1, 2021
· $12.50 per hour on January 1, 2022
· $13.25 per hour on January 1, 2023
· $14.00 per hour on January 1, 2024
· $15.00 per hour on January 1, 2025
Note: A scheduled increase may be delayed one year if the state determines certain negative economic indicators exist.
Youth Minimum Wage:
Under existing state rules, employers are permitted to pay 85 percent of the state’s applicable minimum wage to employees under the age of 20 but only for the first six months of employment. Effective June 1, 2019, Senate Bill 280 limits the availability of this youth minimum wage to those under the age of 18 but removes the 6-month cap on its duration.
Tipped Employees:
Senate Bill 280 directs the state to adopt regulations that would require restaurants that apply the tip credit toward the minimum wage to provide tipped employees with a wage statement each pay period that shows the effective hourly tip rate and all reported tips for tip credit hours worked each workweek of the pay period.
Action Required: Employers with employees in Maryland should ensure that they comply with the law and post an updated minimum wage poster.
Please contact your dedicated service professional with any questions.
This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal advice.