Effective January 1, 2024, all Maryland employers will have to pay their non-exempt employees a minimum wage of $15 per hour. The Fair Wage Act of 2023 (SB555) was signed by Governor Moore on April 11, speeding up the pace by which Maryland will reach a $15 minimum wage.
Governor Moore’s office announced that the Fair Wage Act of 2023 “brings the minimum wage up to $15 an hour two years ahead of schedule and will increase wages for approximately 163,000 workers, benefiting 120,000 children in Maryland.”
How the New Law Impacts Tipped Employees
The law does not change the subminimum wage of $3.63 per hour for tipped employees. However, if a tipped employee's tips do not reach the requisite minimum wage rate for each hour worked, the employer must meet the shortage so that the tipped employee earns the equivalent of the full $15 minimum wage per hour.
Impact on Howard & Montgomery County
Both Howard County and Montgomery County have increased the minimum wages in their county to above the state minimum wage rate of $15 per hour. The Fair Wage Act of 2023 does not impact these increases. Employers in these counties must comply with whichever minimum wage is higher.
Starting on January 1, 2025, for employers with 15 or more employees and on January 1, 2026, for employers with less the 15 employees, Howard County employers must pay their employees at least $16 per hour. In Montgomery County, employers with 51 or more employees must pay their workers a minimum wage of $16.70 by July 1, 2023.
Emejuru Law Can Help You Recover What You Are Owed
We understand that it can be difficult to determine the complexities surrounding the Fair Wage Act of 2023 and how it impacts both employers and employees. Our team at Emejuru Law is here to help ensure that you are receiving all the wages owed to you under the new law.
Contact us online or call us at (240) 607-5552 for a free consultation with one of our experienced wage and hour attorneys. We will fight for your rights!