The Federal minimum wage rate increased to $7.25 back in 2010 and has remained at that level ever since. As you know, many states have passed their own minimum wage laws that increased the minimum wage in their respective states. The Maryland rate, as of December 31, 2019, is $10.10 per hour, and that will increase to $11.00 per hour as of January 1, 2020. Both Montgomery County and Prince George’s County have different wages rates in effect for those areas. Montgomery County has three levels, currently $13 per hour for large employers and $12.50 for both medium and small employers. These rates remain the same until July 1, 2020, when they increase to $14, $13.25 and $13.00 respectively. The Prince Georges County rate is $11.50 through December 31, 2020.

Maryland also has a minimum amount for tipped employees of $3.63/hour; however, wages and tips must equal the state minimum wage amount. In Maryland, an employee under the age of 18 may be paid 85% of the minimum wage rate.

In West Virginia, the minimum wage rate has been $8.75/hour since January 1, 2016 and will remain the same for 2020 despite the introduction of a bill to try to increase the rate. The West Virginia rate for tipped employees is $2.62/hour. As in Maryland, the employee’s hourly rate plus tips must be greater than or equal to the state minimum. Accurate records must be kept to qualify for this reduced minimum wage.

Neither Pennsylvania or Virginia has passed state minimum wage laws, so the minimum rate in these states remains at the 2009 Federal rate of $7.25/hour. The PA tipped employee minimum remains at $2.83/hour, and the VA tipped employee minimum is $2.13/hour, which is the same as the federal minimum.

If your business deals with government contracts that are covered by the DavisBacon Act, the required minimum wage will increase from $10.60/hour to $10.80/ hour on January 1, 2020.

If you have any questions regarding minimum wage laws in your state, please contact your local SEK office.