Howard County, Md., Minimum Wage Increase

Howard County minimum wage increases April 1, 2022, under new legislation.

Passed in December 2021, the minimum wage law in Howard County, Md., will eventually bring the rate to $16.

The Maryland county starts on a different increase schedule than most other jurisdictions, which typically see rates go up at the middle or beginning of the year. However, subsequent increases will go into effect Jan. 1 each year, except the 2026 rate for small employers, which will be on July 1.

Howard County, Md., Minimum Wage

Currently, minimum wage in Howard County is at the Maryland state rate of $12.50 ($12.20 for small employers, those with 15 or fewer employees). Maryland is one of several states moving toward a $15 minimum wage.

Under the new law, Howard County minimum wage for large employers will be:

• April 1, 2022 – $14
• Jan. 1, 2023 – $15
• Jan. 1, 2025 – $16

Small employers:

• April 1, 2022 – $12.50
• Jan. 1, 2023 – $13.25
• Jan. 1, 2024 – $14
• Jan. 1, 2025 – $14.75
• Jan. 1, 2026 – $15.50
• July 1, 2026 – $16

For Howard County government employees, the increased rates will be:

• July 1, 2022 – $15
• July 1, 2024 – $16

After the scheduled rate increases, minimum wage rates will be adjusted via the Consumer Price Index (CPI).

Lastly, the minimum cash wage for a tipped employee is $3.63.

“The impact of this legislation will relieve a financial burden for thousands of low-wage workers, moreover it will benefit 25 percent of the county’s Asian and Pacific Islander workers, 30 percent of the county’s working women, 33 percent of the county’s African American workers, 51 percent of the county’s Latinx workers, and 75 percent of workers in low-income families,” Howard County Councilmember Opel Jones said in a statement. “Leading and legislating through an equitable lens by not delaying economic justice and prosperity for one out of four families who may struggle to provide adequate housing, proper clothing, and food for their families is paramount. As a recommendation from the Racial Equity Task Force, I am humbled by the passage of Council 82-2021, and thrilled to earn the support from residents and of our advocate community.”

Minimum Wage Management. Simplified.

Maryland Minimum Wage

As a reminder, Maryland has its own minimum wage law, following a legislative override of the governor’s veto in 2019.

Rates for large employers are as follows:

• 1, 2022 – $12.50
• 1, 2023 – $13.25
• 1, 2024 – $14
• 1, 2025 – $15

Small employers:

• 1, 2022 – $12.20
• 1, 2023 – $12.80
• 1, 2024 – $13.40
• 1, 2025 – $14
• 1, 2026 – $14.60
• July 1, 2026 – $15

Meanwhile, Maryland’s Montgomery County has also established its own minimum wage rates.

For employers with 51 or more workers, it’s $15, with CPI adjustments set for July 1, 2022.

Montgomery County is still phasing in increases for smaller employers. For employers with 11-50 employees:

• July 1, 2021 – $14
• July 1, 2022 – $14.50
• July 1, 2023 – $15

For employers with 10 or fewer workers:

• July 1, 2021 – $13.50
• July 1, 2022 – $14
• July 1, 2023 – $14.50
• July 1, 2024 – $15

Conclusion

Minimum wage laws continue to spring up in jurisdictions across the U.S. And legislators are introducing new bills all the time. Plus, with many rates now increasing via indexing, it’s becoming more of a challenge to keep track of the latest rates.

Employers with locations in Howard County should prepare for the new rate increases coming in April 2022, as well as the changing schedule in years ahead, and plan for the $16 an hour figure down the road.

This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel.