MARYLAND, USA — Maryland’s minimum wage is going up beginning January 1, 2024.
Beginning January 1, all companies in Maryland must pay minimum wage employees $15 an hour.
For companies that employ more than 15 people, this change wasn’t supposed to go into effect until January 1, 2025. However, under new legislation signed earlier this year, it will go into effect sooner.
Companies that employ people under the age of 18 must pay an employee a wage that equals at least 85% of the state’s minimum wage. Tipped workers will not be affected by the updated bill. They will continue to receive $3.63 an hour if they earn more than $30 a month in tips.
In 2019, the state passed a law that increases the minimum wage by 4% every year until 2025. The newly updated law does restrict wages from increasing automatically beyond 2025. According to the ‘Fair Wage Act of 2023’ beginning July 1, 2025, the Commissioner will determine if a minimum wage increase is needed based on the Consumer Price Index.
It is important to note that two counties in Maryland have already been paying employees $15 an hour. Howard County’s standard minimum wage has been $15 since April of this year. Montgomery County currently offers a little more with its minimum wage set at $15.56.
Since Howard County has already been paying employees the state standard, they will not be increasing their minimum wage in January like the rest of the state. Despite the increase, there are still some who believe that is not enough. Some people are fighting for $20 an hour in Maryland. Which is well above the federal minimum wage that currently sits at $7.25 an hour.
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