Effective January 1, 2020, the State of Maryland increased its minimum wage to $11.00/hour for most businesses. Montgomery and Prince George’s Counties are following a slightly different schedule. Links to those schedules, as well as the schedule for statewide increases to the minimum wage, are available below. The increase is part of an initiative that began in 2017 to increase the living wage for employees and reduce the use of public funds to help subsidize rising costs of living.
Included with the wage increase are new rules regarding tipped employees. From the Maryland Department of Labor:
Tipped Employees (earning more than $30 per month in tips) must earn the State Minimum Wage Rate per hour. Employers must pay at least $3.63 per hour. This amount plus tips must equal at least the State Minimum Wage Rate. https://www.dllr.state.md.us/labor/wages/wagehrfacts.shtml
Unless your employees qualify for an exemption from minimum wage and/or overtime, these new rules apply to them. The start of the New Year is an ideal time to check your books and make sure you have a smooth 2020.
Have questions or concerns about your employee wages? Need to ensure you are classifying the right employees as exempt? Reach out to Council Baradel Employment Lawyers Susan Stobbart Shapiro (ranked by Super Lawyers as one of the top 100 attorneys in the state), and Tova Z. Brody (who headed an HR department for a business with 120 employees prior to becoming an attorney) to answer your questions and ease you into the new year.
Link to Maryland Minimum Wage and Overtime Law Poster.
Links to Minimum Wage and Overtime Posters for Montgomery County and Prince George’s County.
Council Baradel Employment Law Blog 