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Wage Payment, Minimum Wage & Overtime Laws in Maryland

If you have not been paid properly, you may be entitled to 3x what you are owed under Maryland law.

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Maryland Minimum Wage & Overtime Laws

If you have not been paid properly, you may be entitled to substantial compensation under Maryland law.

Maryland has some of the most worker-friendly wage and hour laws in the nation. In Maryland, a worker may recover up to 3 times the amount of late or unpaid wages.

And under Maryland law, “unpaid wages” is a very broad concept that can include: regular wages, minimum wages, overtime wages, employee classification, unpaid hours worked, off-the-clock work, commissions, bonuses, fringe benefits, unpaid vacation time, and more.

In short: If you have not been paid properly, you may be entitled to substantial compensation under Maryland law.

Wage
Payment Law

Maryland

How much am I owed for unpaid wages in Maryland?

Maryland’s wage payment law is one of the most generous in the nation. The Maryland Wage Payment and Collection Law permits workers to recover up to 3 times the amount of any unpaid or late wages, plus attorney’s fees and costs.

What counts as “wages” in Maryland?

The Law defines “wages” very broadly. “Wages” can include unpaid hours worked, bonuses, commissions, fringe benefits, accrued leave, and almost any other type of compensation that might be owed by an employer. In addition, the law expressly prohibits employers from taking unauthorized and unlawful paycheck deductions.

Who does Maryland’s wage payment law apply to?

The wage payment law in the Maryland applies to almost all workers employed in Maryland, whether or not they might be exempt from minimum wage or overtime laws. It can also protect workers who only travel to Maryland occasionally. From dishwashers to managers to highly-compensated executives, the Maryland Wage Payment and Collection law protects almost everyone who performs any work in Maryland.

Looking For A Wage & Hour Attorney?

If you have worked in Maryland, and you think your employer owes you compensation of any kind, please contact us to see if you have a claim under the Maryland Wage Payment and Collection Law.

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Minimum
Wage Law

Maryland

How much is minimum wage in Maryland?

The Maryland minimum wage is currently $15.00 under the Maryland Wage and Hour Law.

The minimum wage is $15.00 – $16.70 in Montgomery County.

Maryland State Minimum Wage Rates
Effective Date 15 or More Employees 14 or Fewer Employees
7/1/2017 $9.25
7/1/2018 $10.10
1/1/2020 $11.00
1/1/2021 $11.75 $11.60
1/1/2022 $12.50 $12.20
1/1/2023 $13.25 $12.80
1/1/2024 $15.00 $15.00
Montgomery County Minimum Wage Rates
Effective Date Large Employer (51 or more employees) Mid-Sized Employer (11 to 50 employees) Small Employer (10 employees or fewer)
7/1/2018 $12.25 $12.00 $12.00
7/1/2019 $13.00 $12.50 $12.50
7/1/2020 $14.00 $13.25 $13.00
7/1/2021 $15.00 $14.00 $13.50
7/1/2022 $15.65 $14.50 $14.00
7/1/2023 $16.70 $15.00 $14.50
7/1/2024 $16.70* $16.70* $15.00
7/1/2025 $16.70* $16.70* $16.70*

*To be adjusted for inflation.
Who’s entitled to the Maryland minimum wage?

Many (if not most) employees in Maryland are protected by the Maryland Wage and Hour Law. (See common exemptions and exceptions.)

If I’m a salaried employee, am I entitled to the Maryland minimum wage?

Just because an employee receives a salary does not mean he or she is not entitled to the Maryland minimum wage! Generally speaking, if you divide your weekly salary by your weekly hours worked, you should get a number that is equal to or higher than the minimum wage. (See common exemptions and exceptions.)

I was not paid the Maryland minimum wage – what am I entitled to?

If you are a Maryland worker who has ever received a wage that is below the state or local minimum wage, you may be entitled to 3 times the amount of unpaid minimum wages. Please contact us for a free and confidential case evaluation.

Overtime Law

Maryland

Am I entitled to overtime pay in Maryland?

Under the Maryland Wage and Hour Law, many (if not most) employees in Maryland are entitled to receive 1.5 times their “usual hourly wage” for any hours they work over 40 in a workweek.

Calculating the correct overtime rate can be difficult, so many employees do not receive the full overtime rate they are entitled to. Also, many employers pay their employees a flat salary when it is unlawful to do so. Because of this, many employees do not know that that they are entitled to overtime.

I am owed unpaid overtime in Maryland – what am I entitled to?

Under the Maryland Wage Payment and Collection Law, an employer may be liable for up to 3 times the amount of any unpaid overtime.

In some respects, Maryland overtime law is more generous than federal overtime law under the FLSA — so just because an employee is not entitled to overtime under the FLSA does not mean he or she is not entitled to overtime under Maryland Law. (See common exemptions and exceptions to the Maryland Wage and Hour Law.)

Denied Overtime Pay?

If you may have been unlawfully denied overtime pay, or if you think your employer is not calculating your overtime pay correctly, please contact us for a free and confidential case evaluation.

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Exemptions & Exceptions

Maryland

Maryland Exemptions from Both Minimum Wage and Overtime

Amusement Park/Recreation Facility/Swimming Pool Employees. “If the employer: 1. operates for no more than 7 months in a calendar year; or 2. for any 6 months during the preceding calendar year, has average receipts that do not exceed one-third of the average receipts for the other 6 months [,] An employer may pay an employee a wage that equals the greater of: 1. 85% of the State minimum wage established under this section; or 2. $ 7.25.” See Md. Code, Lab. & Empl. Art. § 3-413(d). Also, such an employer is not required to pay overtime. See Md. Code, Lab. & Empl. Art. § 3-415(b).

Agricultural Workers. A worker who “is employed in agriculture if, during each quarter of the preceding calendar year, the employer used no more than 500 agricultural-worker days” is not covered by the MWHL. See Md. Code, Lab. & Empl. Art. § 3-403(12). A worker who “is engaged principally in the range production of livestock” is not covered by the MWHL. See Md. Code, Lab. & Empl. Art. § 3-403(13). And certain hand harvest laborers who are paid on a piece-rate basis are not covered by the MWHL. See Md. Code, Lab. & Empl. Art. § 3-403(14). Complicating things further: if a worker is, (1) despite the foregoing, subject to the MWHL, (2) an employee who is “engaged in agriculture,” and (3) exempt from overtime under the FLSA, then he is entitled to overtime only for hours worked over 60 in a week. See Md. Code, Lab. & Empl. Art. § 3-420(c).

Camp Counselors. A worker who “is employed in a nonadministrative capacity at an organized camp, including a resident or day camp” is not covered by the MWHL. See Md. Code, Lab. & Empl. Art. § 3-403(2).

Commissioned Employees. A worker who “is compensated on a commission basis” is not covered by the MWHL. See Md. Code, Lab. & Empl. Art. § 3-403(5).

Drive-In Theater Employees. A worker who “is employed in a drive-in theater” is not covered by the MWHL. See Md. Code, Lab. & Empl. Art. § 3-403(7).

Family Members (immediate). A worker who “is a child, parent, spouse, or other member of the immediate family of the employer” is not covered by the MWHL. See Md. Code, Lab. & Empl. Art. § 3-403(6).

Food Packing Employees. A worker who “is employed by an employer who is engaged in canning, freezing, packing, or first processing of perishable or seasonal fresh fruits, vegetables, or horticultural commodities, poultry, or seafood” is not covered by the MWHL. See Md. Code, Lab. & Empl. Art. § 3-403(9).

Minors (under 16) (for workers under 20, see “Young Workers”, in the Minimum Wage section, below). A worker who “is under the age of 16 years and is employed no more than 20 hours in a week” is not covered by the MWHL. See Md. Code, Lab. & Empl. Art. § 3-403(3).

Outside Salesman. A worker who “is employed as an outside salesman” is not covered by the MWHL. See Md. Code, Lab. & Empl. Art. § 3-403(4).

Small Restaurant/Tavern/Café/Drive-In/Drugstore Employees. A worker who “is employed in a café, drive-in, drugstore, restaurant, tavern, or other similar establishment that: (i) sells food and drink for consumption on the premises; and (ii) has an annual gross income of $ 400,000 or less” is not covered by the MWHL. See Md. Code, Lab. & Empl. Art. § 3-403(11).

Special Education Program Trainees (at public schools). A worker who “is employed as part of the training in a special education program for emotionally, mentally, or physically handicapped students under a public school system” is not covered by the MWHL. See Md. Code, Lab. & Empl. Art. § 3-403(8).

Volunteers. A worker who “engages in the activities of a charitable, educational, not for profit, or religious organization if: (i) the service is provided gratuitously; and (ii) there is, in fact, no employer-employee relationship” is not covered by the MWHL. See Md. Code, Lab. & Empl. Art. § 3-403(10).

‘White Collar’ Employees. A worker who “is employed in a capacity that the Commissioner defines, by regulation, to be administrative, executive, or professional” is not covered by the MWHL. See Md. Code, Lab. & Empl. Art. § 3-403(1).

Maryland Minimum Wage Exemptions

Disabled Workers (with DOL or DLLR certificate). Under very limited circumstances, the MWHL allows an employer to pay a disabled employee less than the state minimum wage. See Md. Code, Lab. & Empl. Art. § 3-414.

Tipped Employees. Under certain circumstances, the MWHL permits an employer to pay a tipped employee $3.63 per hour (provided, among other things, that the employee receives the difference between $3.63 and the minimum wage in tips). See Md. Code, Lab. & Empl. Art. § 3-419.

Young Employees (under 20). “[A]n 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 20 years . . . for the first 6 months that the employee is employed.” See Md. Code, Lab. & Empl. Art. § 3-413(d).

Maryland Overtime Exemptions

Assisted Living Facility Employees. “[A]n employee of an institution that . . . is not a hospital; but . . . is engaged primarily in the care of individuals who . . . are aged, intellectually disabled, or sick or have a mental disorder; and reside at the institution” is only entitled to overtime for hours worked over 48 in a week. See Md. Code, Lab. & Empl. Art. § 3-420(d).

Automobile Dealership Employees. “[A] mechanic, partsperson, or salesperson who primarily sells or services automobiles, farm equipment, trailers, or trucks, if the employer is engaged primarily in selling those vehicles to ultimate buyers and is not a manufacturer” is not entitled to overtime under the MWHL. See Md. Code, Lab. & Empl. Art. § 3-415(c).

Bowling Alley Employees. An employee of a “bowling establishment” is only entitled to overtime for hours worked over 48 in a week. See Md. Code, Lab. & Empl. Art. § 3-420(d).

Motor Carrier Act Employees. An employee who is subject to the Motor Carrier Act exemption to the FLSA is not entitled to overtime under the MWHL. See Md. Code, Lab. & Empl. Art. § 3-415(c).

Railroad Employees. An employer who is “subject to 49 U.S.C. § 10501” is not required to pay overtime under the MWHL (this includes some employers who might not necessarily be “railroads”). See Md. Code, Lab. & Empl. Art. § 3-415(b). See also Md. Code, Lab. & Empl. Art. § 3-415(c)(4).

Theater and Music Venue Employees (nonprofit). An employer who is “a not-for-profit concert promoter, legitimate theater, music festival, music pavilion, or theatrical show” is not required to pay overtime under the MWHL. See Md. Code, Lab. & Empl. Art. § 3-415(b). However, they are required to pay overtime to a “craft or trade employee.” See Md. Code, Lab. & Empl. Art. § 3-420(b).

Taxi Drivers. A worker who is a “a driver if the employer is engaged in the business of operating taxicabs” is not entitled to overtime under the MWHL. See Md. Code, Lab. & Empl. Art. § 3-415(c).

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