Maryland — Wage & Hour

Maryland's statewide minimum wage is $15.00 per hour, effective January 1, 2024. This rate applies uniformly to all employers regardless of size under Md. Lab. & Empl. Code § 3-413(c)(1)–(2). The Fair Wage Act of 2023 accelerated the prior phase-in schedule and unified the rate for both large employers (15 or more employees) and small employers (14 or fewer employees) one year earlier than originally planned. As of June 2026, no further statewide increases are scheduled under Maryland law; any future changes would require new legislation.

Employers must pay the higher of the state or federal minimum wage when both apply. Because the federal minimum under the FLSA is $7.25 per hour, Maryland's state rate controls for all covered employees.

Local minimum wage ordinances

Three Maryland counties have enacted local minimum wage rates above the statewide floor: Montgomery County, Howard County, and Prince George's County. Employers operating within these jurisdictions must comply with the higher local rate for work performed in that county.

• Montgomery County: Minimum wage is tiered by employer size. As of July 1, 2025, large employers (51+ employees) must pay $17.65 per hour, mid-sized employers (11–50 employees) must pay $16.00, and small employers (10 or fewer employees) must pay $15.50. Montgomery County adjusts its rates annually on July 1 based on the Consumer Price Index for Urban Wage Earners in the Washington region, rounded to the nearest five cents. Employees younger than 19 who work fewer than 20 hours per week are exempt from the county minimum.

• Howard County: As of January 1, 2025, employers with 15 or more employees must pay $16.00 per hour. Employers with fewer than 15 employees were scheduled to pay $15.00 through 2025, $15.50 beginning January 1, 2026, and $16.00 beginning July 1, 2026. After July 1, 2026, all Howard County employers regardless of size must pay $16.00. Beginning in 2027, Howard County's minimum wage will adjust annually based on the Consumer Price Index for All Urban Consumers in the Washington-Baltimore region.

• Prince George's County: Effective January 1, 2026, the county minimum wage is $15.30 per hour for all employers regardless of size. Prince George's County indexes the rate to inflation based on the Consumer Price Index for All Urban Consumers in the Washington-Arlington-Alexandria area and adjusts it annually on January 1. Employees 19 years of age or younger working fewer than 20 hours per week are exempt.

When an employee physically works in multiple counties or both inside and outside a county with a local minimum, the employer must pay the applicable rate for the jurisdiction where the work is performed. Maryland follows a "greater of" rule: when a county ordinance sets a higher minimum than the state rate, the higher county rate controls for all hours worked within that county's geographic boundaries.

Source: Md. Lab. & Empl. Code § 3-413 Source: Maryland Department of Labor — Minimum Wage and Overtime Law

Maryland requires employers to pay overtime at 1.5 times the employee's usual hourly wage for all hours worked over 40 in a workweek. The statute contains exemptions for specific categories of employees, including taxicab drivers, mechanics and salespersons primarily selling or servicing automobiles and farm equipment at dealerships, and certain employees subject to the Railway Labor Act.

Source: Md. Lab. & Empl. Code § 3-415

Maryland requires employers to pay all wages due for work performed before termination of employment on or before the day on which the employee would have been paid had the employment not terminated. This means the final paycheck is due on the next regularly scheduled payday following separation, regardless of whether the employee resigned voluntarily or was terminated for cause. Md. Lab. & Empl. Code § 3-505(a).

The statute makes no distinction between voluntary resignation and involuntary termination — both trigger the same deadline. Unlike jurisdictions that require immediate payment upon termination or different timelines based on the reason for separation, Maryland applies a uniform next-scheduled-payday rule.

Accrued leave and vacation payout

Maryland does not mandate payout of accrued but unused vacation time at termination; instead, the obligation turns on the employer's written policy. Section 3-505(b) carves out an exception: an employer is not required to pay accrued leave if (1) the employer has a written policy that limits compensation of accrued leave to employees; (2) the employer notified the employee of the leave benefits in accordance with § 3-504(a)(1) (the notice-of-wages statute); and (3) the employee is not entitled to payment for accrued leave at termination under the terms of the employer's written policy. Where the employer does not have a written policy that expressly forfeits unused vacation, that unused earned vacation becomes a wage due at termination and must be paid on the next payday. The Maryland Department of Labor emphasizes that "where the employer does not have a written policy that limits the compensation for accrued leave to a terminated employee, that employee is entitled to the cash value of whatever unused earned vacation leave was left — provided it was otherwise usable."

Sick leave, by contrast, is typically not payable at termination unless the employer's policy or a contract expressly provides otherwise, because sick leave is generally limited to use during illness or medical need rather than treated as deferred compensation.

Enforcement and treble-damage exposure

If an employer fails to pay wages in accordance with § 3-505, and two weeks have elapsed from the date on which payment was required, the employee may bring a civil action to recover the unpaid wages under § 3-507.2(a). If the court finds the employer withheld wages in violation of the statute and not as a result of a bona fide dispute, it may award the employee up to three times the unpaid wage amount, plus reasonable attorney's fees and costs. Md. Lab. & Empl. Code § 3-507.2(b). The burden of proving a bona fide dispute falls on the employer.

The Maryland Court of Appeals held in Peters v. Early Healthcare Giver, Inc., 439 Md. 646, 97 A.3d 621 (2014), that the Wage Payment and Collection Law applies broadly to any failure to pay wages when due, including overtime violations and misclassification claims under the FLSA and Maryland Wage and Hour Law. The Court reasoned that the Wage Payment and Collection Law's private right of action "was to provide a meaningful remedy to the harm flowing from the refusal of employers to pay wages lawfully due," and that the statute's references to timing provisions (§§ 3-502 and 3-505) determine when wages are due rather than limit the categories of unpaid wages recoverable under the statute. This expansive interpretation means that final-paycheck delays, unpaid overtime, and wage misclassification can all support claims under § 3-507.2 with its treble-damages remedy, provided no bona fide dispute exists.

Source: Md. Lab. & Empl. Code § 3-505 Source: Md. Lab. & Empl. Code § 3-507.2 Source: Maryland Guide to Wage Payment and Employment Standards — Termination Pay Source: Peters v. Early Healthcare Giver, Inc., 439 Md. 646, 97 A.3d 621 (2014)

Maryland exempts several categories of employees from the overtime requirement under Md. Lab. & Empl. Code § 3-415. Beyond the specific exemptions listed in § 3-415 itself (taxicab drivers, auto dealership mechanics and salespersons primarily engaged in selling or servicing automobiles or farm implements, and employees subject to the Railway Labor Act), Maryland's Wage and Hour Law excludes additional categories of workers from coverage entirely through § 3-403. The most significant of these are executive, administrative, professional, outside sales, and agricultural employees.

Executive, administrative, and professional employees — Maryland follows FLSA definitions

Md. Lab. & Empl. Code § 3-403(1) provides that the entire Wage and Hour Law subtitle—including both minimum wage and overtime requirements—does not apply to "an individual who is employed in a capacity that the Commissioner defines, by regulation, to be administrative, executive, or professional." The Commissioner of Labor and Industry has exercised this authority through the Code of Maryland Regulations (COMAR), and Maryland has adopted the federal Fair Labor Standards Act definitions and tests for these three white-collar exemptions.

COMAR 09.12.41.01 states that "[t]he definitions and requirements of the Fair Labor Standards Act, to the extent applicable, are hereby adopted." COMAR 09.12.41.05 (executive capacity) and COMAR 09.12.41.17 (administrative and professional capacity) incorporate the FLSA regulatory framework under 29 C.F.R. Part 541. This means an employee qualifies for exemption in Maryland if and only if the employee satisfies BOTH the salary-basis test and the duties test under the current FLSA regulations at 29 C.F.R. Part 541.

Salary-basis requirement. To qualify as executive, administrative, or professional under Maryland law, an employee must be "compensated on a salary basis at a rate of not less than $684 a week ($35,568 annualized; excluding board, lodging or other facilities)," according to the Maryland Department of Labor's official guidance. The $684-per-week threshold reflects the federal salary level established by the U.S. Department of Labor in 2019 and currently in effect under the FLSA. Because Maryland's COMAR regulations adopt the FLSA definitions "to the extent applicable," changes to the federal salary threshold may affect Maryland's exemption standards, though Maryland has not enacted a separate state-specific salary floor that diverges from federal law.

An employee must receive the full salary for any week in which the employee performs any work, without regard to the number of days or hours worked, subject to narrow exceptions under the FLSA salary-basis test (full-day absences for personal reasons, full-day absences for sickness or disability under a bona fide plan, disciplinary suspensions of one or more full days for serious workplace conduct rule violations, unpaid leave under the Family and Medical Leave Act, and the initial or terminal week of employment). If an employer makes improper deductions from an exempt employee's salary—such as docking pay for partial-day absences—the employee loses exempt status and becomes entitled to overtime pay for all hours over 40 in the workweek. The Maryland Department of Labor emphasizes this rule: "For Executive, Administrative and Professional employees receiving salaries, an employer may not generally deduct or 'dock' from wages any amount of time for missed work which is less than a full day. Doing so may remove the employee from the 'exempt' status under the Wage and Hour Law, and entitle him or her to overtime pay after 40 hours."

Duties tests — job title does not control. The substantive duties requirements are likewise adopted from the FLSA regulatory scheme. A job title alone does not determine exempt status; the actual day-to-day responsibilities of the employee control the analysis.

• Executive exemption (COMAR 09.12.41.05): The employee's primary duty must be management of the enterprise or of a customarily recognized department or subdivision of the enterprise. The employee must customarily and regularly direct the work of at least two or more full-time employees (or their equivalent). The employee must have authority to hire or fire other employees, or the employee's suggestions and recommendations as to the hiring, firing, advancement, promotion, or any other change of status of other employees must be given particular weight.

• Administrative exemption (COMAR 09.12.41.17): The employee's primary duty must be the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer's customers. The employee's primary duty must include the exercise of discretion and independent judgment with respect to matters of significance. Administrative work is work that supports the running of the business or servicing the business itself, as distinguished from working on the production line or selling a product in a retail or service establishment.

• Professional exemption (COMAR 09.12.41.17): This exemption applies to both "learned professionals" and "creative professionals." A learned professional's primary duty must be the performance of work requiring advanced knowledge (work which is predominantly intellectual in character and includes work requiring the consistent exercise of discretion and judgment) in a field of science or learning, and the advanced knowledge must be customarily acquired by a prolonged course of specialized intellectual instruction. Examples include lawyers, doctors, registered nurses, accountants, actuaries, engineers, architects, and teachers. A creative professional's primary duty must be the performance of work requiring invention, imagination, originality, or talent in a recognized field of artistic or creative endeavor (such as music, writing, acting, or the graphic arts).

Maryland also recognizes a separate exemption for computer employees under COMAR 09.12.41.24, following the FLSA computer-employee exemption for systems analysts, programmers, software engineers, and other similarly skilled workers in the computer field who meet either the $684-per-week salary test or an hourly-rate test (at least $27.63 per hour under the federal standard).

Outside sales employees

Md. Lab. & Empl. Code § 3-403(4) exempts "an individual who is employed as an outside salesman" from the entire Wage and Hour Law, including both minimum wage and overtime requirements. Maryland incorporates the FLSA definition for this exemption under COMAR 09.12.41.13. An outside sales employee is one whose primary duty is making sales (as defined in the Fair Labor Standards Act, 29 U.S.C. § 203(k)) or obtaining orders or contracts for services or for the use of facilities for which a consideration will be paid by the client or customer, and who is customarily and regularly engaged away from the employer's place or places of business in performing such primary duty.

There is no minimum salary requirement for the outside sales exemption. The key distinction is that the employee must make sales in the field—away from the employer's location—rather than by telephone, mail, email, or the internet from a fixed site. Inside sales employees do not qualify for the outside sales exemption and must be paid overtime unless they satisfy a different exemption.

Agricultural employees

Md. Lab. & Empl. Code § 3-403(14) exempts certain agricultural employees from Maryland's minimum wage and overtime requirements. The exemption applies to an individual who meets all three of the following conditions: (i) the individual is employed in agriculture (as defined under the federal Fair Labor Standards Act, 29 U.S.C. § 203(f), which includes farming in all its branches, cultivation and tillage of the soil, dairying, the production, cultivation, growing, and harvesting of any agricultural or horticultural commodities, and the raising of livestock, bees, fur-bearing animals, or poultry); (ii) the individual commutes daily from the individual's permanent residence to the farm where the individual is employed; and (iii) during the preceding calendar year, the individual was employed in agriculture less than 13 weeks.

Section 3-403(14) also exempts an individual who (i) is under the age of 17 years; (ii) is employed on the same farm as a parent of the individual or a person standing in the place of the parent; and (iii) is paid at a piece rate that is the same rate paid to employees who are at least 17 years old on the same farm for the same activity.

Agricultural employees who do not fall within these narrow § 3-403(14) exemptions remain subject to Maryland's Wage and Hour Law, but § 3-415(c) permits a modified overtime threshold: the wage for overtime may be computed on the basis of hours worked over 60 in a workweek (rather than the general 40-hour threshold) for an employee who is engaged in agriculture and is exempt from the overtime provisions of the federal Fair Labor Standards Act.

Commissioned employees

Md. Lab. & Empl. Code § 3-403(5) exempts from the entire Wage and Hour Law subtitle "an individual who is compensated on a commission basis." This is a broader statutory exemption than the federal FLSA's narrow retail-or-service-establishment commission exemption under 29 U.S.C. § 207(i), which requires that the employee's regular rate of pay exceed one and one-half times the applicable minimum wage for every hour worked and that more than half the employee's compensation in a representative period consist of commissions on goods or services. Maryland's statute does not explicitly impose these thresholds, though employers should analyze whether commissions constitute the predominant form of compensation and be aware that courts may construe the exemption narrowly. The exemption does not apply to employees who receive only a small commission component on top of an hourly wage or salary.

Other exemptions from overtime only (minimum wage still required)

Several categories of employees are exempt from Maryland's overtime requirement under § 3-415 but remain entitled to at least the applicable minimum wage. These include:

• Employees at bowling establishments, for all hours worked over 48 per week (not 40).
• Employees at on-premise institutions providing care for the sick, the aged, the mentally ill, or persons with disabilities who reside on the premises, for all hours worked over 48 per week. Hospitals are not included in this exemption.
• Employees at amusement or recreational establishments that meet the FLSA's seasonal or recreational establishment criteria.
• Employees in bona fide executive, administrative, or supervisory capacities at a hotel, motel, or tourist court, and certain year-round employees of seasonal hotels.
• Partsmen, salesmen, and mechanics primarily engaged in selling or servicing automobiles, trucks, or farm implements at a retail or wholesale dealership (as noted in the existing guide section on overtime thresholds).
• Taxicab drivers.
• Employees subject to the Railway Labor Act.

Other exemptions from the entire subtitle

Section 3-403 lists additional categories of employees excluded from Maryland's entire Wage and Hour Law (both minimum wage and overtime). These include individuals employed in a nonadministrative capacity at an organized camp (including a resident or day camp); individuals under age 16 who are employed no more than 20 hours per week; a child, parent, spouse, or other member of the immediate family of the employer; individuals employed in a drive-in theater; individuals employed as part of the training in a special education program for emotionally, mentally, or physically handicapped students under a public school system; individuals employed by an employer engaged in the canning, freezing, packing, or first processing of perishable or seasonal fresh fruits, vegetables, horticultural commodities, poultry, or seafood during the time the employer is engaged in these activities; and individuals engaged in the activities of a charitable, educational, or religious institution when the individuals volunteer their services and receive no compensation or are patients, inmates, or students of the institution.

When Maryland and federal law overlap

Because Maryland incorporates FLSA definitions for most white-collar exemptions through COMAR, an employee who qualifies as exempt under the FLSA will typically also qualify as exempt under Maryland law. However, Maryland's statutory exemptions (such as the broad commission-basis exemption in § 3-403(5) or the 13-week agricultural exemption in § 3-403(14)) do not automatically track all federal exemptions, and employers must analyze each exemption independently under both Maryland and federal standards. When both federal and state law apply, the employer must comply with whichever law affords the greater protection to the employee. An employee who is non-exempt under the FLSA remains entitled to overtime under federal law even if a Maryland-specific exemption might otherwise apply.

Burden of proof and narrow construction

Exemptions from wage and hour requirements are construed narrowly, and the burden of proving that an employee falls within an exemption rests on the employer. If an employer misclassifies a non-exempt employee as exempt and fails to pay overtime, the employer may be liable for back overtime wages under both the federal FLSA (29 U.S.C. § 216(b)) and Maryland law (Md. Lab. & Empl. Code § 3-427), plus liquidated damages, attorney's fees, and costs. Maryland courts have also held that unpaid overtime claims can support actions under the Wage Payment and Collection Law (§ 3-507.2), which permits awards of up to three times the wage amount withheld when the employer's failure to pay was not the result of a bona fide dispute.

Source: Md. Lab. & Empl. Code § 3-403 Source: Md. Lab. & Empl. Code § 3-415 Source: COMAR 09.12.41.01 — Definitions Source: COMAR 09.12.41.05 — Executive Capacity Source: COMAR 09.12.41.17 — Administrative and Professional Capacity Source: Maryland Department of Labor — Salaried Employees: No Overtime

Maryland permits employers to pay a reduced cash wage to tipped employees and credit a portion of the employee's tips toward the minimum wage obligation, subject to strict requirements. Understanding these rules — and the notice, wage-statement, make-up-pay, and dual-jobs limitations — is essential for restaurant and hospitality employers.

Cash wage floor and maximum tip credit

Under Md. Lab. & Empl. Code § 3-419(c), the tip credit amount that an employer may include as part of a tipped employee's wage "may not exceed the minimum wage established under § 3-413 of this subtitle for the employee less $3.63." Because Maryland's statewide minimum wage is $15.00 per hour as of January 1, 2024, the maximum tip credit is $11.37 per hour ($15.00 − $3.63), and employers must pay tipped employees a direct cash wage of at least $3.63 per hour. The $3.63 cash-wage floor is statutory and has remained constant despite increases in the state minimum wage.

In counties with local minimum wage ordinances (Montgomery, Howard, and Prince George's), the maximum tip credit is likewise calculated as the applicable local minimum less $3.63. For example, Montgomery County requires a minimum cash wage of at least $4.00 per hour for tipped employees under its local ordinance, reflecting a smaller maximum tip credit than the state formula.

Definition of tipped employee and notice requirement

Section 3-419(a) applies to each employee who (1) is engaged in an occupation in which the employee customarily and regularly receives more than $30 each month in tips, (2) has been informed by the employer about the provisions of § 3-419, and (3) has kept all of the tips that the employee received (except pursuant to a valid tip pool). All three elements are mandatory; an employer who fails to provide advance written or oral notice to the employee about the tip credit provisions forfeits the right to take the credit and must pay the full minimum wage as a direct cash wage.

Make-up pay obligation when tips fall short

The tip credit is not a wage discount; it is a payment mechanism. Tipped employees must earn the full applicable minimum wage (state or local) for every hour worked. If an employee's direct cash wage plus actual tips received in a workweek, divided by total hours worked, does not equal or exceed the applicable minimum wage, the employer must pay the difference. This make-up pay is due on the next regular payday and is subject to the same enforcement mechanisms (including treble damages under the Wage Payment and Collection Law) as any other unpaid wage.

Dual jobs and the 20-percent rule — no tip credit for non-tipped time

Maryland law prohibits taking a tip credit for time an employee spends on non-tipped tasks. COMAR 09.12.41.19(D)(4) provides that "a tipped employee who spends more than 20 percent of the employee's work time performing non-tip producing duties directly related to their tipped occupation shall be paid by the employer at least the minimum wage for that time." The Maryland Department of Labor also states that "tipped employees who are from time to time assigned to perform non-tip related tasks must be paid by their employer at least the full minimum wage rate for that non-tipped time."

In practice, this means that if a server spends an hour cleaning the restaurant after close or a bartender spends significant time on inventory and stocking, the employer must pay the full minimum wage (not the reduced cash wage) for that time. This is Maryland's dual-jobs rule and it applies regardless of whether the non-tipped work exceeds 20 percent of a given shift.

Tip credit wage statement requirement for restaurant employers

Md. Lab. & Empl. Code § 3-419(d) requires the Commissioner of Labor and Industry to adopt regulations mandating that restaurant employers who utilize a tip credit provide tipped employees with a written or electronic wage statement for each pay period showing the "effective hourly tip rate" — the employee's total compensation (cash wages plus reported tips) divided by tip-credit hours worked, calculated separately for each workweek of the pay period. The implementing regulation is COMAR 09.12.41.20.

The tip credit wage statement must be provided no later than two weeks following the end of the pay period. It may be furnished separately or as part of the employee's regular pay stub. The statement gives employees visibility into whether they are in fact earning the full minimum wage when tips are included, and it serves as a compliance cross-check for make-up pay obligations.

Tip retention and tip pooling

Tips belong to the employee. Section 3-419(a)(1)(iii) conditions the tip credit on the employee having "kept all of the tips that the employee received," though subsection (a)(2) clarifies that the statute does not prohibit tip pooling. Maryland permits voluntary tip pools among employees who customarily and regularly receive tips (servers, bartenders, bussers). Employers, managers, and supervisors may not participate in the tip pool or retain any portion of employee tips, and employers may not require employees to share tips with back-of-house staff (cooks, dishwashers) who do not customarily receive tips — though voluntary sharing is permitted.

Employers also may not deduct credit card processing fees from tips paid to employees.

Overtime calculation for tipped employees

Maryland requires overtime at 1.5 times the employee's regular rate for all hours over 40 in a workweek. When the employer takes a tip credit, the overtime rate is calculated based on the full applicable minimum wage, not the lower cash wage. The employer may continue to apply the same tip credit (the difference between the minimum wage and the $3.63 cash wage) to overtime hours, but the cash wage owed for an overtime hour is 1.5 times the applicable minimum wage, less the tip credit.

At Maryland's $15.00 statewide minimum wage, the overtime rate is $22.50 per hour. If the employer takes the maximum tip credit, the cash wage owed for each overtime hour is $22.50 − $11.37 = $11.13. The employee must still receive total compensation (cash plus tips) of at least $22.50 for every overtime hour. COMAR 09.12.41.19(E)(7) confirms that "tips received by the employee in excess of the tip credit" are excluded from the regular hourly rate, ensuring that the employer does not owe overtime premiums on tips beyond the credited amount.

Source: Md. Lab. & Empl. Code § 3-419 Source: Maryland Department of Labor — Tipped Employees: Payment of Less than Minimum Wage Source: Maryland Department of Labor — Tip Credit Wage Statement FAQs Source: COMAR 09.12.41.19 — Regular Hourly Rate

Three Maryland counties have enacted minimum wage ordinances that exceed the $15.00 statewide floor: Montgomery County, Howard County, and Prince George's County. Employers must pay the higher local rate for all hours an employee physically works within the county's geographic boundaries, regardless of where the employer's headquarters or principal place of business is located. Maryland follows a work-location rule, not an employer-location rule.

Montgomery County

Montgomery County Code § 27-68 requires tiered minimum wages based on employer size, with annual inflation adjustments effective each July 1. As of July 1, 2026:

• Large employers (51+ employees): $18.00 per hour
• Mid-sized employers (11–50 employees): $16.50 per hour
• Small employers (10 or fewer employees): $15.95 per hour

The county adjusts these rates annually on July 1 based on the prior calendar year's average increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Washington-Arlington-Alexandria area, rounded to the nearest five cents. Section 27-68 mandates that the Chief Administrative Officer calculate and publish the adjustment each March 1 based on the change in the regional consumer price index from the prior calendar year. If the CPI-W increase for mid-sized or small employers is less than $0.50 and those tiers have not yet reached parity with the next-higher tier, the county adds an additional one-percent adjustment (up to a combined total increase of $0.50) to accelerate convergence.

Exemptions: Montgomery County's minimum wage does not apply to employees under age 20 working fewer than 20 hours per week. The ordinance also exempts employers with tax-exempt status under Internal Revenue Code § 501(c)(3) and employers that provide home health services as defined by 42 C.F.R. § 440.70 or home- or community-based services as defined by 42 C.F.R. § 440.180 and receive at least 75% of gross revenues through state and federal Medicaid programs.

Tipped employees in Montgomery County: Employers must pay tipped employees at least $4.00 per hour in direct cash wages. Tips plus the cash wage must equal or exceed the applicable Montgomery County minimum wage for the employer's size tier. Montgomery County Code § 27-69(d) requires restaurant employers who utilize a tip credit to submit a quarterly wage report to the Office of Human Rights within 30 days after the end of each quarter.

Howard County

Howard County Council Bill 82-2021 established a scheduled path to $16.00 per hour for all employers by July 1, 2026, ending the prior size-based tiers. As of July 1, 2026, all Howard County employers, regardless of size, must pay a uniform $16.00 minimum wage. Beginning January 1, 2027, Howard County's minimum wage will adjust annually based on the Consumer Price Index for All Urban Consumers (CPI-U) for the Washington-Baltimore region. The Howard County Council reviews the local minimum wage every four years.

Howard County's minimum wage applies to employees permitted or instructed to work or be present by an employer in Howard County and who are subject to the minimum wage requirements of the federal Fair Labor Standards Act or Maryland Wage and Hour Law. The ordinance applies to Howard County government and the Howard County Public School System but does not apply to the United States, Maryland state government, or other local governments operating in Howard County.

Exemptions: The ordinance does not apply to employees under 18 years of age (however, employers must pay those employees at least 85% of the county minimum wage); employees under 16 working no more than 20 hours per week; employees in special education programs for emotionally, mentally, or physically handicapped students under the Howard County Public School System; certain hand-harvest agricultural laborers paid on a piece-rate basis; employees who are the child, parent, spouse, or other member of the immediate family of the employer; employers that employ 14 or fewer employees and are defined as small employers under Maryland Labor and Employment Code § 3-413(a)(3); employers with tax-exempt status under Internal Revenue Code § 501(c)(3); employers providing home health services as defined by 42 C.F.R. § 440.70 or home- or community-based services as defined by 42 C.F.R. § 440.180 that receive at least 75% of gross revenues through state and federal Medicaid programs; and food service facilities as defined in Chapter 10.15.03.02 of the Code of Maryland Regulations.

Tipped employees in Howard County: Howard County follows Maryland state law for tipped employees. Employers may pay $3.63 per hour in cash wages, provided total compensation including tips reaches the applicable Howard County minimum wage of $16.00 (as of July 1, 2026).

Prince George's County

Prince George's County Bill CB-088-2024, effective September 1, 2025, indexed the county minimum wage to the Consumer Price Index. As of January 1, 2026, the Prince George's County minimum wage is $15.30 per hour for all employers, regardless of size. The rate increased from the prior $15.00 floor based on the Consumer Price Index for All Urban Consumers (CPI-U) for the Washington-Arlington-Alexandria area. The bill uses the average percentage growth of the CPI for the last 12 months to determine the annual increase for the next year, up to a maximum annual increase of 5%, provided that seasonally adjusted total employment reported by the federal Bureau of Labor Statistics does not show negative growth.

Beginning in 2027, the county minimum wage will adjust annually on January 1 based on the same indexing formula. Prince George's County exempts employees age 19 or younger working fewer than 20 hours per week from the county minimum wage.

Tipped employees in Prince George's County: Prince George's County follows Maryland state law for tipped employees. Employers may pay $3.63 per hour in cash wages, provided total compensation including tips equals or exceeds the county minimum wage of $15.30 per hour.

Work-location rule and multi-county employees

All three county ordinances apply based on where the employee physically performs work, not where the employer is located or where the employee resides. An employee who works in Montgomery County must be paid the Montgomery County rate for those hours, even if the employer's headquarters is in Baltimore or another state.

When an employee works in multiple counties in the same workweek—for example, a field technician who works Monday and Tuesday in Montgomery County, Wednesday in Howard County, and Thursday and Friday in Anne Arundel County (state minimum only)—the employer must track hours by work location and pay the applicable minimum for each county's hours. The controlling principle is the "greater of" rule: when multiple wage floors apply, the employer must pay whichever rate is highest for the jurisdiction where the work was performed.

Source: Montgomery County Government — Minimum Wage Source: Howard County Government — Minimum Wage Increase Source: Maryland Department of Labor — Minimum Wage and Overtime Law

Maryland permits employers to pay employees under 18 years of age a reduced minimum wage equal to 85% of the applicable state minimum wage, with no time limit. Md. Lab. & Empl. Code § 3-413(d) provides: "An employer may pay an employee a wage that equals a rate of 85% of the State minimum wage established under this section if the employee is under the age of 18 years."

Calculating the youth minimum wage

With Maryland's statewide minimum wage at $15.00 per hour (effective January 1, 2024 under § 3-413(c)(1)(ii)), the youth minimum wage is $12.75 per hour ($15.00 × 0.85). This rate applies to all employees under 18, regardless of job type, experience, or employer size. The statute is permissive, not mandatory—employers may choose to pay employees under 18 the full minimum wage; the 85% rate is a floor, not a ceiling.

No time restrictions

Unlike the federal Fair Labor Standards Act, which permits a $4.25-per-hour youth minimum wage for employees under 20 during their first 90 consecutive calendar days of employment (29 U.S.C. § 206(g)), Maryland's youth wage provision contains no temporal restriction. An employer may pay the 85% rate for the entire duration of employment, from the employee's first hour of work through the day before the employee turns 18. Once the employee reaches age 18, the full minimum wage applies immediately.

Because the statute uses the phrase "may pay," employers retain discretion to pay any amount at or above $12.75 per hour to employees under 18. The 85% reduction is a permissive wage floor for this age group, not a mandate or a cap.

Interaction with federal minimum wage

When both federal and state minimum wage laws apply to an employee, the employer must pay the higher of the two rates. Section 3-413(b)(1) requires employers to pay employees subject to both the federal Act and Maryland's subtitle "at least the greater of: (i) the minimum wage for that employee under the federal Act; or (ii) the State minimum wage set under subsection (c)."

For employees under 18, Maryland's youth minimum wage of $12.75 per hour substantially exceeds the federal youth minimum wage of $4.25 per hour (applicable only to employees under 20 for their first 90 calendar days). It also exceeds the general federal minimum wage of $7.25 per hour. Employers covered by both the FLSA and Maryland law must therefore pay at least $12.75 per hour to employees under 18 in Maryland, and $15.00 per hour once the employee turns 18.

Interaction with local minimum wage ordinances

Three Maryland counties—Montgomery, Howard, and Prince George's—have enacted local minimum wage ordinances that set rates above the statewide $15.00 floor. Employees under 18 who work in those counties may be subject to a higher youth minimum wage (calculated as 85% of the applicable local minimum) or may qualify for county-specific exemptions based on age and weekly hours worked. The details of each county's youth wage rules and exemptions are set by the local ordinance, not by state statute.

Employers with employees under 18 working in Montgomery, Howard, or Prince George's County should consult the applicable county code or the county's labor standards office to determine the correct minimum wage. Section 3-413(d) authorizes a reduction to 85% of the "State minimum wage," and whether and how that provision interacts with county-level wage floors depends on the text of each county's ordinance.

Work permits and other employment standards for minors

Paying the youth minimum wage does not exempt employers from Maryland's other requirements for employing minors. The Maryland Department of Labor's guidance confirms that "[e]mployees under 18 years of age must earn at least 85% of the State Minimum Wage Rate," and also notes that all minors under 18 must obtain a work permit before beginning employment and are subject to restrictions on work hours, prohibited occupations, and mandatory rest breaks under Maryland's child labor laws (Md. Lab. & Empl. Code Title 3, Subtitle 2). The youth wage is simply a wage floor; all other protections for minor employees remain in force.

Source: Md. Lab. & Empl. Code § 3-413 Source: Maryland Department of Labor — Minimum Wage and Overtime Law

Maryland law mandates that employers pay most employees at least once every two weeks or twice in each month, but permits less frequent payment to administrative, executive, and professional employees. The Wage Payment and Collection Law establishes a minimum payment frequency designed to ensure regular wage delivery.

General rule: biweekly or semi-monthly

Md. Lab. & Empl. Code § 3-502(a)(1)(ii) requires each employer to "pay each employee at least once in every 2 weeks or twice in each month." This means employers must choose one of two minimum frequencies:

• Biweekly: Pay periods of two weeks each, typically resulting in 26 pay periods per year.
• Semi-monthly: Two paydays per month, typically resulting in 24 pay periods per year.

The statute does not prescribe which option an employer must choose, nor does it prohibit more frequent payment. It sets a floor: employers may not stretch pay periods longer than two weeks (for a biweekly schedule) or beyond twice-per-month (for a semi-monthly schedule). Section 3-502(a)(1)(i) also requires employers to "set regular pay periods," meaning the employer must establish a consistent, recurring schedule.

Exception for administrative, executive, and professional employees

Section 3-502(a)(2) provides that "an employer may pay an administrative, executive, or professional employee less frequently than required under paragraph (1)(ii)." This exception permits monthly payment—or even less frequent payment—for employees who fall into one of the three named categories.

The statute does not define "administrative," "executive," or "professional" employee for purposes of this payment-frequency rule. Maryland employers commonly reference the federal Fair Labor Standards Act white-collar exemptions under 29 C.F.R. Part 541 when determining which employees qualify for this exception, since the same terminology governs overtime exemptions under Maryland's Wage and Hour Law—but no Maryland statute or regulation expressly incorporates the FLSA definitions into § 3-502(a)(2). The Maryland Department of Labor states that the exception applies to "Executive, Professional and Administrative employees" without providing further definitional guidance.

In practice, this means salaried employees who meet the FLSA executive, administrative, or professional exemption criteria are typically paid monthly, but the statute itself does not mandate that interpretation or limit the exception to FLSA-exempt employees. Employers relying on monthly or less-frequent payment for employees in these categories should be aware that the statutory terms are undefined and may be subject to dispute if challenged.

Employees who must be paid biweekly or semi-monthly

All employees who do not fall within the administrative, executive, or professional exception under § 3-502(a)(2) must be paid at least once every two weeks or twice per month. The Maryland Department of Labor confirms that "employees in Maryland must be paid at least once every two weeks or twice in a month," with the exception noted for the three named categories.

Because the statute provides no list of who is excluded from the exception, the safest approach is to assume that any employee not clearly meeting an administrative, executive, or professional classification must receive biweekly or semi-monthly payment. This includes hourly employees, non-exempt salaried employees, tipped employees, and commission or piece-rate workers unless they independently satisfy one of the three exemption categories.

Payday falls on a non-workday

Section 3-502(b) addresses the scenario where the employer's regular payday falls on a weekend, holiday, or other non-workday: "If the regular payday of an employee is a nonworkday, an employer shall pay the employee on the preceding workday." This ensures employees are not required to wait until the next business day. For example, if the regular payday is the 15th of the month and the 15th falls on a Saturday, the employer must pay employees on Friday the 14th.

Notice requirement for changes to payday or pay period

Md. Lab. & Empl. Code § 3-504(a)(3) requires employers to give employees "at least 1 pay period in advance, notice of any change in a payday or wage." If an employer wishes to change the pay frequency (e.g., from biweekly to semi-monthly) or shift the regular payday, the employer must notify employees at least one full pay period before the change takes effect.

Enforcement and penalties

Failure to pay wages in accordance with the frequency required by § 3-502 is a violation of the Wage Payment and Collection Law. Under Md. Lab. & Empl. Code § 3-507.2(a), if an employer fails to pay an employee in accordance with § 3-502 and two weeks have elapsed from the date on which the employer was required to have paid the wages, the employee may bring a civil action to recover the unpaid wages.

If the court finds that the employer withheld wages in violation of the statute and not as a result of a bona fide dispute, the court may award the employee an amount not exceeding three times the unpaid wage, plus reasonable attorney's fees and other costs under § 3-507.2(b). Section 3-508 also subjects employers who willfully fail to pay wages when due to criminal penalties, including a fine of up to $1,000 per violation.

The treble-damages provision means that systematic delays—such as paying non-exempt employees monthly when the statute requires biweekly or semi-monthly payment—can result in significant liability. Employers should verify that any employee paid less frequently than biweekly or semi-monthly genuinely falls within the administrative, executive, or professional exception.

Government employers

The Maryland Department of Labor states that "federal, state and local governments are exempt from the provisions of the Wage Payment and Collection Law but they must comply with the federal Fair Labor Standards Act." Private employers, regardless of size, must comply with § 3-502's payment-frequency requirements for their Maryland employees.

Source: Md. Lab. & Empl. Code § 3-502 Source: Md. Lab. & Empl. Code § 3-504 Source: Md. Lab. & Empl. Code § 3-507.2 Source: Md. Lab. & Empl. Code § 3-508 Source: Maryland Department of Labor — Frequency of Pay Source: Maryland Department of Labor — Introduction to Wage Payment and Employment Standards