What Is the Minimum Wage in Maryland?
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2019 Minimum Wage in Maryland: $10.10 Per Hour
Maryland’s minimum wage has been gradually increasing year over year. In 2017 it was $9.25, and increased to its current rate of $10.10 in 2018. It is also set to continue to increase over the next few years. Maryland’s minimum wage is significantly higher than the federal minimum wage, and the state is on track toward instituting a $15 per hour minimum wage by 2025.
Subminimum Wages: 85 Percent for Certain Employees
According to the state regulations, employees in “amusement and recreational establishments,” as well as employees under 20 years of age, may be paid a special wage at 85 percent of the standard minimum wage rate. Note that, for employees under 20 years old, the special wage only applies for 6 months, after which they would need to be paid minimum wage.
Tipped: $3.63 Per Hour
The minimum cash wage for tipped employees is $3.63 per hour, however, employers are still responsible for ensuring that, between wages and tips, their employees still make at least the minimum wage of $10.10 per hour. The $3.63 minimum is the cash wage that employers must pay, and the rest can be applied as a tip credit as long as the employees actually make enough in tips.
The weekly minimum wage calculation is based on multiplying the hourly minimum wage of $10.10 per hour by 40 hours in a standard workweek. This number is calculated before any deductions such as taxes, insurance premiums, and any other deductions that might automatically be applied to a paycheck.
The annual minimum wage calculation is based on multiplying the weekly minimum wage of $404 and multiplying it by 52 weeks in a year. This number does not account for sick time and other time off, taxes, other deductions, paid and unpaid holidays, and other reasons for fewer worked hours. It represents the gross income, not the net take-home pay after deductions.
Overtime: $15.15 Per Hour
Like most other states, the standard rate of overtime pay for Maryland is time plus one half, making the minimum overtime wage $15.15 per hour. Also like other states, the overtime rules apply after 40 hours worked in a standard seven-day period. The state does have some specific exceptions:
- Workers in bowling alleys and in care facilities other than hospitals for sick, elderly, or people with disabilities start overtime at 48 hours per week instead of 40.
- Agriculture workers don’t qualify for overtime until they have worked 60 hours in a seven day period.
The department of labor for Maryland, linked above, also notes certain exemptions from both minimum wage and overtime rules, and a series of other very specific circumstances.
Maryland Minimum Wage Increase News
Maryland has good news for minimum wage workers. Despite a veto by the Governor, the state passed minimum wage increase legislation in March of 2019 that will see the minimum wage rise to $15 per hour by 2025, starting in 2020.
The wage will gradually increase every year, although smaller businesses (with fewer than 15 employees) will see the wage rise slightly less each year than larger businesses, and have until 2026 before the $15 standard sets in full.
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Ben Steele is a writer, theatre(re) professional, and nonprofit administrator. He was born in England, spent his teen and early 20s in Canada, and now lives in America. Please excuse his occasionally confused voice and the odd recalcitrant u after an o.
This post was updated July 2, 2019. It was originally published July 2, 2019.