Maryland: Minimum Wage to Increase to $15 per Hour by 2025
APPLIES TO All Employers with MD Employees |
EFFECTIVE June 1, 2019 |
QUESTIONS? Contact HR On-Call |
The Maryland legislature recently overrode Governor Hogan’s veto of a minimum wage bill that will increase minimum wage to $15 per hour by 2025, and by 2026 for employers with 14 or less employees. HB 166/SB 280 raises minimum wage to $11 per hour on January 1, 2020, and then by $0.75 each year thereafter until it reaches $15 on January 1, 2025. Small employers will see annual increases of $0.60 each year until July 1, 2026. Workers under 18 years old, down from 20 years, are required to be paid at least 85% of the state minimum wage.
Additionally, employers who take a tip credit for tipped employees must provide employees with a wage statement each pay period showing their effective hourly tip rate “as derived from employer-paid cash wages plus all reported tips for tip credit hours worked each workweek of the pay period.”
Action Items
- Update projected budgets to account for increases in minimum wage.
- Update payroll processes to account for minimum wage increases.
- Update tipped employee wage statements as required.
- Look for forthcoming tip credit wage statement regulations from the Commissioner.
- Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.
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