Posts

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

(888) 378-2456

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

  1. Update projected budgets to account for increases in minimum wage.
  2. Update payroll processes to account for minimum wage increases.
  3. Update tipped employee wage statements as required.
  4. Look for forthcoming tip credit wage statement regulations from the Commissioner.
  5. 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.

© 2019 ManagEase