EMPLOYMENT LAW NEWS

Maryland 2024 Minimum Wage Update

By GovDocs
Updated August 2024

Maryland Minimum Wage

Employers with locations in Maryland that may have been relying on the previous increase schedule should get set for the new $15 rate, effective Jan. 1, 2024.

Maryland minimum wage is poised to hit the $15 mark a bit sooner than expected.

In 2019, Maryland legislators passed a law to gradually increase minimum wage rates. For large employers (those with 15 or more workers), it was previously set to reach $15 on Jan. 1, 2025.

However, following new legislation and as of Jan. 1, 2024, Maryland’s minimum wage is now $15 for employers of all sizes as of Jan. 1, 2024.

Minimum Wage Management. Simplified.

2024 Maryland Minimum Wage Update

As of Jan. 1, 2024, Maryland’s minimum wage is $15, up from the previous year’s rate of $13.25. For tipped employees, the rate is $3.63.

The previous version of the law set a schedule to ramp up to the $15 threshold in 2025 for large employers and 2026 for small employers.

Now, with the passage of the Fair Wage Act of 2023, employers of all sizes must pay $15 an hour in 2024.

Gov. Wes Moore signed the Maryland minimum wage update into law on April 11, 2023.

Meanwhile, the new law also eliminates future rate increases. Of course, that could change with new legislation. It also does not appear to impact the tipped rate for Maryland minimum wage.

How Many States Have a $15 Minimum Wage?

Minimum Wage in Maryland Counties

As a reminder, two counties in Maryland also have their own minimum wage rates. Both have already hit the $15 number.

In Howard County, the rates (as of Jan. 1, 2024) are:

  • $15 – standard
  • $3.63 – tipped employees

In Montgomery County, the current rates (as of July 1, 2024) are:

  • $17.15 – large employers (51 or more employees)
  • $15.50 – medium-sized employers (11-50 employees)
  • $15 – small employers
  • $4 – tipped employees

Note that minimum wage rates for Howard County will increase again on Jan. 1, 2025 and for Montgomery County will increase again on July 1, 2025.

County and City Minimum Wage Rate Guide

Managing Minimum Wage Rates in 2024

The news on the Maryland minimum wage underscores the complexities of managing rates across the U.S.

A new federal minimum wage rate has long been discussed but never acted on, so more jurisdictions have enacted their own rates. And even some that have a minimum wage law on the books, such as Maryland, have opted to make additional updates, as well.

Meanwhile, these laws can be more complicated than simply knowing the rates. Cook County, Ill., allows cities to opt in or out of its ordinance. And Oregon minimum wage applies its rate based on county (but not entirely).

Additionally, while minimum wage in Maryland, and several other states, are moving toward the $15 figure, there has been a new push — the Fight for $20.

From indexed rates to ballot measures, industry-specific rates and more, the challenges of managing minimum wage continue to grow.

(In case you’re an employer with locations north of the border: Canada Minimum Wage.)

Minimum Wage Compliance Resources

Next Steps for Employers

Employers of all sizes with locations in Maryland and certain local jurisdictions within the state should get set for regularly scheduled minimum wage rate increases in 2025.

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

GovDocs Minimum Wage
gov-docs-paid-leave-laws-management-simplified-us-map-call-to-action

Keep Informed
with GovDocs Employment Law News

Employment Law Compliance LinkedIn Group

Who is GovDocs?

GovDocs simplifies employment law compliance for large employers in the U.S. and Canada. The GovDocs software platform integrates three solutions in one convenient place to help you master the employment laws impacting your business. Whether you manage a labor law posters, minimum wage or paid leave program, our products cut through research time, provide proactive insights into the everchanging landscape of employment laws and reduce the risk of noncompliance. The company is headquartered in Eagan, Minn.

Have fewer than 30 locations? 

The GovDocs Poster Store simplifies posting compliance for employers with less than 30 locations across all industries, offering a variety of posting products to meet your labor law compliance needs.