Effective Jan. 1, 2024, all Maryland employers will have to pay their hourly employees a minimum wage of $15 per hour. This requirement stems from the enactment of Maryland Senate Bill 555 (SB555), also known as the Fair Wage Act of 2023, which was signed into law by Maryland Governor Wes Moore on April 11, 2023. With most Montgomery County-based employers already required by County law to pay a minimum wage rate of $15 or more per hour, this new State law will apply to Montgomery County employers with 10 or fewer employees who must raise employee wages from $14.50 to $15 per hour beginning Jan. 1, 2024. On July 1, 2023, the County minimum wage increased to:
- $16.70 per hour for large employers (those with 51 employees or more).
- $15.00 per hour for mid-sized employers (11-50 employees).
- $14.50 per hour for small employers (1-10 employees).
Employers in Montgomery County are obligated to comply with the State or County’s minimum wage, whichever is higher. Therefore, large employers in the County are still required to continue paying their employees a minimum wage of $16.70 per hour.
Tipped Employees
Tipped employees (earning more than $30 per month in tips) must earn the Montgomery County Minimum Wage Rate per hour. Employers must pay at least $4.00 per hour. This amount plus tips must equal at least the Montgomery...
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