Maryland’s Minimum Wage Increase - Is Your Company Compliant?

Maryland’s Minimum Wage Increase - Is Your Company Compliant?.png

Is your company complying with Maryland’s new minimum wage laws? If not, you could face significant penalties from the Maryland Department of Labor, Licensing and Regulation. If you have questions about the minimum wage increase, a Maryland business attorney can review your company’s policies to ensure compliance with the new minimum wage laws in Maryland.

What are the Minimum Wage Laws In Maryland?

Minimum wage laws changed as of July 1, 2018. For most employees, the state requires employers to pay a minimum of $10.10 per hour, which is an increase of $0.85 per hour from the previous rate. However, there are some exceptions.

For instance, employees who earn more than $30 per month in tips must be paid a minimum of $3.63 per hour. The hourly rate plus earned tips must equal the State minimum wage rate. Employees who are under 20 years of age must be paid at least 85% of the minimum wage rate for the first six months of employment.  After that, employees must earn the full minimum wage. Some recreational and amusement employers may qualify to pay employees 85% of the required minimum wage.

Overtime rates are typically paid to any employee who works more than 40 hours per week. The overtime rate is 1.5 times the usual hourly rate. However, employers of agricultural workers are not required to pay the overtime rate unless the employee works over 60 hours in a week. Furthermore, except for hospitals, businesses that provide on-site care to elderly individuals, persons with disabilities, or persons who are sick are not required to pay overtime rates until employees work over 48 hours per week. The 48-hour per week requirement also applies to employees of bowling establishments.

Minimum Wage Rates in Prince George’s County

Prince George’s County enacted a higher minimum wage for employees within the county. The minimum wage for most employees in Prince George’s County is $11.50 per hour. Exceptions for tipped employees, employees under 20 years of age, and employees of some recreational or amusement establishments are the same as the statewide rules. Overtime wages in Prince George’s County are also the same as the state requirements.

Minimum Wage Rates in Montgomery County

Montgomery County also has a different minimum wage requirement than the rest of the state. Employers in Montgomery County must pay at least $12.00 per hour for 50 or fewer employees. Employers with 51 or more employees must pay $12.25 per hour. Overtime rules are the same as the state requirements.

The exceptions for tipped employees and some amusement/recreational employees are the same as the state exceptions. The exception for employees under 20 years of age is also the same. However, employees 18 years of age and under working less than 20 hours per week are exempt from the minimum wage rate.

Minimum Wage Notice Requirements

Employers are required to post notices regarding the State’s minimum wage (and the County minimum wage, if applicable) in a conspicuous place. In addition, employers are required to maintain payroll records for three years on site.

Contact a Maryland Business Attorney for Help

There are other exemptions to the state and county minimum wage requirements for certain employees and employers. It is crucial that employers comply with all minimum wage laws. Contact Thienel Law today to review your employment policies to ensure you comply with the state’s employment laws to avoid penalties. Maryland business attorney Steve Thienel is dedicated to assisting clients in Maryland, Virginia, and throughout the DC Metro area.