All Maryland employers will have to pay their hourly employees a minimum wage of $15 per hour starting Jan. 1, 2024. This requirement stems from the enactment of Maryland Senate Bill 555 (SB555), also known as the Fair Wage Act of 2023, which was signed into law by Maryland Governor Wes Moore on April 11, 2023.
Minimum Wage Rates
Maryland (As of January 1, 2023)
- 15 or more employees – $13.25
- Less than 15 – $12.80
- On January 1, 2024 – $15 for all, regardless of size
Minimum Wage
Most employees must be paid the Maryland State Minimum Wage Rate.
Tipped Employees Tipped Employees (earning more than $30 per month in tips) must earn the State Minimum Wage Rate per hour. Employers must pay at least $3.63 per hour. This amount plus tips must equal at least the State Minimum Wage Rate. Subject to the adoption of related regulations, restaurant employers who utilize a tip credit are required to provide employees with a written or electronic wage statement for each pay period showing the employee’s effective hourly rate of pay including employer paid cash wages plus tips for tip credit hours worked for each workweek of the pay period.
Amusement and recreational establishments must pay employees the required Minimum Wage Rate.
Employees under 18 years of age must earn at least 85% of the State Minimum Wage Rate.
Overtime
Most employees must be paid 1.5 times their usual hourly rate for all work over 40 hrs. per week. Exceptions:
- Bowling establishments, and institutions providing on-premise care (other than hospitals) to the sick, the aged, or individuals with disabilities for all work over 48 hrs. per week
- Agricultural workers for all work over 60 hrs. per week (Maryland Wage and Hour Agriculture Exemptions brochure)
Exemptions
Minimum Wage and Overtime Exemptions:
- 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
