Employment Law Update
Maryland’s Minimum Wage Increases on January 1, 2024
Maryland employees who earn minimum wage are ringing in the New Year in 2024 with a raise. As we reported in an earlier article, Maryland passed legislation in 2019 that would gradually increase the minimum wage from $11.00 per hour to $15 per hour by January 1, 2025. In May 2023, however, the General Assembly passed the Fair Wage Act of 2023, accelerating the schedule so that the minimum wage will now be $15 effective on January 1, 2024. This increase represents a significant jump from the prior Maryland rates of $13.50 per hour for employers with 15 or more employees and $ 12.80 for smaller employers. The minimum wage for tipped employees remains at $3.63 per hour. The law also mandates a new poster describing the legal requirements, which you can find here.
In Montgomery County, the minimum wage for employers with more than 50 employees is $17 per hour and $4 for tipped employees who work in the county.
While Maryland’s increase is consistent with recent regional trends, rates among nearby states and the District of Columbia vary significantly. The minimum wage in the District of Columbia is $17 per hour and $8 per hour for tipped employees. Virginia’s minimum wage is $12 per hour and $2.13 (the federal rate) for tipped employees and West Virginia’s is $8.75 per hour and $2.62 for tipped employees. Employers with workers in other states should ensure that they are complying with the applicable state minimum wage law, or local minimum wage law if it exceeds the applicable state law.
Liability for failing to pay the appropriate minimum wage under Maryland law may include treble damages, costs, attorneys’ fees and criminal penalties. In some circumstances, there could be individual liability, which means that a supervisor or business owner may be required to pay the deficient wages, damages and related fees, costs and penalties.
Employers with questions about Maryland’s minimum wage obligations should contact their employment law attorney at Gordon Feinblatt.
Melissa Menkel McGuire
410-576-4201 • mmcguire@gfrlaw.com