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2020 Minimum Wage in Maryland: $11.00 Per Hour
Maryland’s minimum wage has been gradually increasing year over year. In 2018 it was $10.10 and it stayed the same through 2019. This number is set to continue increasing over the next few years to $11.60 in 2021, then progress to $12.20 in 2022. 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% 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% of the standard minimum wage rate. Note that, for employees under 20 years old, the special wage only applies for six 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 make at least the minimum wage of $11 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.
Employees who earn the minimum wage in Maryland can expect to make $440 for a full-time week of work. The weekly minimum wage calculation is based on multiplying the hourly minimum wage of $11 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.
Employees who earn the minimum wage in Maryland can expect to make $22,880 for a year of full-time work. The annual minimum wage calculation is based on multiplying the weekly minimum wage of $440 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: $16.50 Per Hour
Like most other states, the standard rate of overtime pay for Maryland is time plus one-half, making the minimum overtime wage $16.50 per hour. Also like other states, the overtime rules apply after 40 hours worked in a standard seven-day period.
Minimum Wage and Overtime Exemptions
The state of Maryland does have some specific exceptions within the minimum wage laws. These exemptions include:
- An immediate family member of the employer;
- Certain agricultural employees;
- Executives, administrative, and professional employees;
- Volunteers for educational, charitable, religious, and non-profit organizations;
- Employees under 16 working less than 20 hours per week;
- Outside salespersons;
- Commissioned employees;
- Employees enrolled as a trainee as part of a public school special education program;
- Non-administrative employees of organized camps;
- Certain establishments selling food and drink for consumption on the premises grossing less than $400,000 annually;
- Drive-in theaters;
- Establishments engaged in the first canning, packing or freezing of fruits, vegetables, poultry, or seafood.
Overtime Only Exemptions (must earn the State Minimum Wage Rate):
- Taxicab drivers;
- Certain employees selling/servicing automobiles, farm equipment, trailers, or trucks;
- Non-profit concert promoter, theater, music festival, music pavilion, or theatrical show;
- Employers subject to certain railroad requirements of the U.S. Dept. of Transportation, the Federal Motor Carrier Act, and the Interstate Commerce Commission;
- Seasonal amusement and recreational establishments that meet certain criteria.
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 they have until 2026, when the $15 standard takes full effect.
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