Maryland Minimum Wage to Increase to $15 an Hour
On March 28, 2019, Maryland’s legislature overrode Republican Governor Larry Hogan’s veto to raise the state’s minimum wage limit to $15.00 per hour from the current minimum wage of $10.10 per hour. This now makes them the sixth state to increase their minimum wage. The other states include California, Illinois, Massachusetts, New Jersey and New York.
The new minimum wage will not take effect immediately, but rather on a yearly increase schedule. Large employers, with at least 15 employees, will start their increases on January 1, 2020, to reach the end goal of $15.00 by January 1, 2025. And for small employers, with fewer than 15 employees, will have an extra year to reach the new minimum wage.
Large employer increased minimum wage schedule:
- January 1, 2020 $11.00
- January 1, 2021 $11.75
- January 1, 2022 $12.50
- January 1, 2023 $13.25
- January 1, 2024 $14.00
- January 1, 2025 $15.00
Small employer increased minimum wage schedule:
- January 1, 2020 $11.00
- January 1, 2021 $11.60
- January 1, 2022 $12.20
- January 1, 2023 $12.80
- January 1, 2024 $13.40
- January 1, 2025 $14.00
- January 1, 2026 $14.60
- July 1, 2026 $15.00
For businesses with employees under the age of 18 may pay them a minimum wage equal to 85% of the state’s minimum wage.
Tipped Employees
Also under the new legislation, Commissioner of the Maryland Division of Labor and Industry (DLI) will adopt regulations requiring restaurant employers to provide wage statements to employees per pay period. These wage statements must show the employees’ hourly tip rate (derived from employer-paid cash wages) plus all reported tips (for tip credit hours) worked each workweek.
Source: Jackson Lewis | Maryland Approves Minimum Wage Increase to $15 an Hour
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