Maryland Minimum Wage and Overtime Law - Employment Standards Service (ESS)

Tipped Employees (earning more than $30 per month in tips) must still earn at least the State Minimum Wage Rate per hour. Employers must pay at least $3.63 per hour. This amount plus tips must equal at least the State Minimum Wage Rate, and employers must cover any gap.

Restaurants that rely on tips to reach minimum wage must give employees a written or electronic wage statement for each pay period showing the employee’s effective hourly rate of pay, including employer-paid cash wages plus tips. This is called a Tip Credit Wage Statement.

Minimum Wage and Overtime Exemptions:

1. Immediate family member of the employer
2. Certain agricultural employees
3. Employees who meet the federal Fair Labor Standards Act’s definitions of administrative, executive, or professional
4. Volunteers for educational, charitable, religious, and non-profit organizations
5. Employees under 16 working less than 20 hours per week
6. Outside salespeople
7. Employees paid on a commission basis
8. Employees enrolled as trainees as part of a public school special education program
9. Non-administrative employees of organized camps
10. Employees of certain establishments selling food and drink for consumption on the premises grossing less than $400,000 annually
11. Employees of drive-in theaters
12. Employees of establishments engaged in the canning, packing, freezing, or first processing of fruits, vegetables, poultry, or seafood
13. Employees covered by the Secure Maryland Wage Act
14. Certain minor league baseball players

Overtime-Only Exemptions (must earn the State Minimum Wage Rate):

1. Taxicab drivers
2. Certain employees selling/servicing automobiles, farm equipment, trailers, or trucks
3. Employees of a non-profit concert promoter, theater, music festival, music pavilion, or theatrical show
4. Employees of employers subject to certain railroad requirements of the U.S. Dept. of Transportation, the Federal Motor Carrier Act, and the Interstate Commerce Commission
5. Employees of seasonal amusement and recreational establishments that meet certain criteria

As of July 1, 2026, all employers (regardless of size) must pay at least $16.00 per hour.

As of July 1, 2026*:

1. Large employers (51 or more employees) must pay at least $18.00 per hour.
2. Mid-sized employers** (11 to 50 employees) must pay at least $16.50 per hour.
3. Small employers (10 or fewer employees) must pay at least $15.95 per hour.

*Future rates are increased each July 1 by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for Washington-Baltimore, or a successor index, for the previous calendar year.

**Certain non-profit organizations and Medicaid-funded home care providers are subject to the mid-sized rate even if they employ more than 51 employees. That is because Montgomery County law defines mid-sized employer to mean:

1. an employer who employs between 11 and 50 employees; or
2. an employer who employs 11 or more employees and:
1. has tax exempt status under Section 501(c)(3) of the Internal Revenue Code; or
2. provides “home health services” as defined by 42 C.F.R. § 440.70 or “home or community-based services” as defined by 42 C.F.R. § 440.180, and receives at least 75% of gross revenues through state and federal Medicaid programs.

Exclusions

The County minimum wage does not apply to an employee who:

1. is exempt from the minimum wage requirements of the State or Federal Act; or
2. is under 19 years of age and is employed no more than 20 hours per week.

Younger Workers

An employer may pay a wage equal to 85% of the County minimum wage to an employee under 20 years of age for the first six months that the employee is employed.

Tipped Employees

Employers must pay tipped employees at least $4.00 per hour. Direct pay plus tips must equal at least the applicable minimum wage rate listed above. Restaurants that rely on tips to reach minimum wage must give employees a Tip Credit Wage Statement.

More information on the Montgomery County Minimum Wage

As of July 1, 2026, all employers (regardless of size) must pay at least $15.30 per hour.