Maryland Minimum Wage: Current Rate & Scheduled Increases

The Fair Labor Standards Act (FLSA), 29 U.S.C. § 206, establishes the federal minimum wage at $7.25 per hour. This applies to all employers engaged in interstate commerce with at least two employees. The FLSA permits a lower tipped minimum wage of $2.13 per hour in direct wages if tips bring the employee to $7.25 total, and the employer properly credits tips against the minimum wage.

The U.S. Department of Labor (DOL) enforces the FLSA through the Wage and Hour Division. Remedies for federal violations include back wages, liquidated damages (equal to unpaid wages), and in some cases attorney fees and costs. An employee can sue their employer directly in federal or state court, or file a complaint with the DOL.

The FLSA covers most private employees but excludes certain categories such as some agricultural workers, independent contractors, and certain executive, administrative, and professional employees. The statute of limitations for FLSA claims is two years for non-willful violations and three years for willful violations.

Maryland Code, Labor and Employment Article § 3-505 sets Maryland's minimum wage at $15.00 per hour as of January 1, 2024. This is significantly higher than the federal minimum wage of $7.25 per hour. Maryland law requires annual adjustments to the minimum wage based on the Consumer Price Index; the rate increases each January 1st unless inflation is less than 1%, in which case the wage remains flat.

Maryland's minimum wage applies to all employers with one or more employee, regardless of annual revenue or interstate commerce status. This is broader coverage than the FLSA, which only applies to employers with two or more employees. State law does not require a specific gross annual sales threshold, making it nearly universal in its application across Maryland businesses.

Maryland permits a tipped minimum wage credit under § 3-505.1. Tipped employees must receive at least $3.63 per hour in direct wages from the employer; tips are then credited toward the $15.00 minimum wage requirement. If tips do not bring the employee to the full minimum wage, the employer must make up the difference. Maryland defines a tipped employee as one who customarily receives tips of at least $30 per month.

Maryland law does not permit tip pooling arrangements that violate FLSA rules, and certain categories of workers cannot be subject to tip credits, including kitchen staff, dishwashers, and hosts who do not customarily receive tips. The state also requires that employers notify employees of the minimum wage rate and the tip credit calculation in writing.

Unlike federal law, Maryland provides no statute of limitations for wage claims. An employee can bring a claim for unpaid minimum wages at any time. Remedies under state law include unpaid wages, treble damages (three times the unpaid wages) in cases of willful or knowing violations, and attorney fees and costs.

Maryland minimum wage: $15.00 per hour as of January 1, 2024, adjusted annually on January 1 based on inflation.

Tipped minimum wage: $3.63 per hour in direct wages as of January 1, 2024; tips must be credited to reach the full $15.00 minimum wage.

Tipped employee definition: A worker who customarily receives at least $30 per month in tips.

Employer coverage threshold: One or more employee (no minimum annual revenue requirement).

No statute of limitations for wage claims under Maryland law.

Maryland Code § 3-505.2 provides limited exemptions from minimum wage requirements. These include: (1) employees under 16 years of age may be paid at least 85% of the minimum wage ($12.75 per hour as of 2024) for the first 90 days of employment, provided the employer participates in a Work-Study Program or similar approved youth employment program; (2) sheltered workshops and certain nonprofit organizations providing therapeutic employment for individuals with disabilities may request a waiver from the Commissioner of Labor.

Federal exemptions under the FLSA also apply in Maryland, including certain executive, administrative, and professional employees classified as "white collar" under Department of Labor regulations. These exempt employees must meet strict salary and duties tests. Likewise, certain commissioned salespeople, outside salespersons, and certain agricultural workers may be exempt under federal law, provided they also meet the detailed requirements of 29 U.S.C. § 213.

Maryland law does not permit employers to offset minimum wage obligations through non-wage benefits such as housing, meals, or uniforms. These benefits cannot reduce the employee's cash wage below the minimum wage. Additionally, employers cannot require employees to work off-the-clock or perform unpaid work to make up for business losses.

At-will employment rules in Maryland do not override minimum wage obligations. An employer cannot pay below minimum wage simply because employment is at-will. Agreements to work for less than minimum wage are void and unenforceable under Maryland law.

Step 1: Document the Violation.

Keep detailed records of all hours worked, dates, and wages paid. Take screenshots or photos of paystubs, timesheets, and any communications from your employer regarding pay. Document the dates you raised the issue with management and their response. Note the exact amount of wages you believe were not paid at the minimum wage rate. Preserve text messages, emails, or notes about pay discussions. Do not delete or lose any original documents—these are critical evidence.

Step 2: Attempt Internal Resolution.

Request a written explanation from your employer for the wage discrepancy. Ask in writing (email preferred) why your pay falls below the $15.00 minimum wage and request immediate correction. Keep a copy of this request and any response. If your employer is unresponsive or refuses to pay, proceed to external remedies. Internal complaint processes are not required in Maryland before filing a claim, but documenting your attempt to resolve internally strengthens your case and may be useful in litigation or settlement negotiations.

Step 3: File a Complaint with the Maryland Department of Labor.

Visit the Maryland Department of Labor website at mol.maryland.gov or call 410-767-2357. You can file a wage complaint online or by phone; there is no filing fee. Provide your employer's name, address, phone number, the dates of unpaid wages, your job title, hours worked, and wages paid. Include the amount of wages you believe were not paid at minimum wage. The Department of Labor will assign your complaint to a wage investigator. You have no statutory deadline to file—Maryland has no statute of limitations on wage claims, so you can file at any time.

Step 4: Investigation Process.

The Maryland Department of Labor will contact your employer and request payroll records, timesheets, and documentation of your pay. The investigator will interview you and may interview coworkers if applicable. The investigation typically takes 4-8 weeks, though complex cases may take longer. Your employer may dispute the claim by providing their own documentation. You will be asked to provide any additional evidence or witnesses. The Department of Labor will issue a determination with findings of fact and a conclusion on whether a violation occurred. If the investigator finds a violation, they will order the employer to pay back wages, and may assess penalties.

Step 5: Consult an Attorney.

If the Department of Labor's determination is unfavorable or if your employer fails to comply with a wage order, consult an employment law attorney licensed in Maryland. You may be entitled to file a civil lawsuit in Maryland state court or, if federal law is also implicated, in federal court. An attorney can pursue treble damages (three times the unpaid wages) under Maryland law if the violation was willful or knowing, plus attorney fees and costs. Many employment attorneys work on contingency, meaning they take a percentage of the recovery if you win, rather than charging hourly fees upfront. Contact the Maryland State Bar Association's lawyer referral service or search for attorneys specializing in wage and hour law.