Minimum Wage in Maryland – New Rates for 2020 and Beyond

December 16, 2019

During the 2019 Legislative Session, the Maryland General Assembly enacted legislation to amend the state’s minimum wage requirements.  This amendment is effective January 1, 2020 when the state’s minimum wage increases to $11.00 an hour.  The newly amended law distinguishes between “employers” and “small employers.”  A “small employer” is defined as an employer with 14 or fewer employees.  Ultimately, minimum wage will be increased to $15 for all employers in the state, but for small employers, the increases will be phased in over a period of seven and a half years, whereas the increases will be phased in over a period of six years for other employers.

Effective Date Employers Small Employers
January 1, 2020 $11.00 $11.00
January 1, 2021 $11.75 $11.60
January 1. 2022 $12.50 $12.20
January 1, 2023 $13.25 $12.80
January 1, 2024 $14.00 $13.40
January 1, 2025 $15.00 $14.00
January 1, 2026 $14.60
July 1, 2026 $15.00

Maryland’s minimum wage law allows employers to pay employees under the age of 18 a wage that equals 85% of the State minimum wage established under this statute.

Montgomery County and Prince George’s County have also enacted minimum wage laws for employers within their counties in recent years.  Montgomery County’s law distinguishes between large, mid-size, and small employers.  Large employers are defined as those employers with more than 50 employees.  Mid-size employers are those with 11-50 employees.  Small employers are those with 10 or few employees.  The current minimum wage rates, which went into effect in Montgomery County on July 1, 2019 are $13.00 for large employers and $12.50 for mid-size and small employers.  Future minimum wage rates are scheduled to take effect in Montgomery County annually on July 1st until the minimum wage rate is equal for all employers.

Effective Date Large Employers Mid-Size Employers Small Employers
July 1, 2020 $14.00 $13.25 $13.00
July 1, 2021 $15.00 $14.00 $13.50
July 1, 2022 $15.00 + CPI-W $14.50 $14.00
July 1, 2023 Increased annually by CPI‑W $15.00 $14.50
July 1, 2024 Increased annually by CPI‑W + up to 1% until equal to large employers $15.00
July 1, 2025 Increased annually by CPI‑W + up to 1% until equal to large employers
July 1, 2026

CPI-W = Consumer Price Index for Urban Wage Earners and Clerical Workers for the Washington-Baltimore area for the previous calendar year.

Currently, the minimum wage for employers in Prince George’s County is $11.50.  This rate will remain in effect until December 31, 2020.  Beginning January 1, 2021, the minimum wage rate established under state law will take effect in Prince George’s County.

This Update is provided for informational purposes only. It is not intended as legal advice, nor does it create an attorney/client relationship between the McGuire Moore Law LLC and any readers or recipients. Readers should consult counsel of their own choosing to discuss how these matters relate to their individual circumstances. Reproduction in whole or in part is prohibited without the express written consent of McGuire Moore Law LLC.

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