Effective January 1, 2024, Maryland State's employee minimum wage is increasing to $15 per hour for all employers, regardless of size. In contrast to the 2023 state rate hike, the rate remains consistent regardless of whether a company has more or fewer than 15 employees.

Employees under the age of 18 must earn at least 85% of the new minimum wage. Tipped employees earning more than $30 per month in tips must be paid $3.63 per hour. This amount plus tips must equal at least the state minimum wage rate. Overtime wages will also be increased. Most employees must be paid 1.5 times their usual hourly rate for all hours over 40 per week.

There are a number of exceptions to the new minimum wage rate:

Minimum wage and overtime exemptions:

• Immediate family member of the employer
• Certain agricultural employees
• Executives, administrative, and professional employees
• Volunteers for educational, charitable, religious, and non-profit organizations
• Employees under 16 working less than 20 hours per week
• Outside salespersons
• Commissioned employees
• Employees enrolled as a trainee as part of a public school special education program
• Non-administrative employees of organized camps
• Certain establishments selling food and drink for consumption on the premises grossing less than $400,000 annually
• Drive-in theaters
• Establishments engaged in the first canning, packing or freezing of fruits, vegetables, poultry, or seafood

Overtime only exemptions (must earn the state minimum wage rate, but overtime not required):

• Taxicab drivers
• Certain employees selling/servicing automobiles, farm equipment, trailers, or trucks
• Non-profit concert promoter, theater, music festival, music pavilion, or theatrical show
• Employers subject to certain railroad requirements of the U.S. Dept. of Transportation, the Federal Motor Carrier Act, and the Interstate Commerce Commission
• Seasonal amusement and recreational establishments that meet certain criteria

For more information on the new law, click here.