January 1st, 2024

Maryland Minimum Wage Increase Starting Jan. 1, 2024

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Author: Darla J. McClure

Labor costs go up for Maryland employers starting January 1, 2024, thanks to the Fair Wage Act of 2023 (aka Senate Bill 555). Signed by Gov. Wes Moore in April, the new law boosts Maryland’s minimum wage to $15 per hour, with the exception of for tipped employees, which stays at $3.63 per hour ($4.00 in Montgomery County).

The Maryland law does not supersede Montgomery County’s or Howard County’s minimum wage laws. That means employers in those jurisdictions must abide by whichever is higher of the state or county minimum wage.

Howard County – All employers will be subject to the $15 per hour as provided by the state. Larger employers must pay at least $16/hour effective January 1, 2025.

Montgomery County’s minimum wage law affects employers differently depending on which of three size categories the employer fits:

  • Large employers (51+ employees) must pay $16.70/hour effective January 1, 2024; but then must be adjusted annually starting on July 1, 2024.
  • Mid-sized employers (11 to 50 employees) must pay $15/hour starting January 1, 2024.
  • Small employers (10 or fewer employees) must pay $15/hour effective January 1, 2024.