On April 10, 2023, the Maryland General Assembly concluded its 90-day legislative session. Notably, several of the bills passed will have a significant impact on employers. If Maryland Governor Wes Moore signs them into law (as expected), each should be effective October 1, 2023, unless noted below.
Here is what employers should know:
Maryland's minimum wage is currently $13.25 per hour for employers with 15 or more employees and $12.80 per hour for employers with 14 or fewer employees. Under Senate Bill 555 (now the Fair Wage Act of 2023), Maryland will speed up its scheduled increase of the minimum wage of $15.00 per hour to take effect on January 1, 2024, instead of waiting until 2025 per prior law. This increase applies to employers of all sizes. However, the Fair Wage Act does not affect Montgomery County's minimum wage increase scale, which is higher than the state level. It is important to note that Montgomery County's minimum wage will increase on July 1, 2023, to (i) $16.71 per hour for employers with 51 or more employees (large employers); (ii) $15.00 per hour for employers with 11 to 50 employees (mid-sized employers); and (iii) $14.50 per hour for employers with 10 or fewer employees (small employers).
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