Maryland MINIMUM WAGES

Maryland State Minimum Wage for 2025

As of January 1, 2024, the minimum wages in Maryland is $15 per hour for non-tipped employees. Tipped employees earning more than $15 per hour are paid a minimum wage of $3.63 per hour. Employees under 18 years are entitled to at least 85% of the state minimum wage. 

Non-agricultural workers are eligible for overtime pay at 1.5 times their regular rate for hours worked beyond 40 per week. 

Minimum Wages in Maryland Cities

The list below details minimum wage rate across Maryland’s cities: 

Threshold for Employees Exempt 

The Fair Labor Standards Act (FLSA) classifies employees as exempt or nonexempt. Non-exempt employees are protected by minimum wage laws and qualify for overtime pay, while exempt employees typically do not. 

Impact Of Minimum Wages on Non-Exempt Employees: 

Non-exempt employees must be paid the state or federal minimum wage rate for their working hours. Employers need to adjust their wages based on the prevailing minimum wage rates. Non-exempt employees are also entitled to overtime pay for hours worked beyond 40 hours per week. 

Impact Of Minimum Wages on Exempt Employees: 

Exempt employees are typically salaried individuals who earn at least $684 per week or $35,568 per annum. They are usually indirectly impacted by minimum wage rate changes, as employers tend to raise the salary thresholds to maintain the distinction between exempt and non-exempt employees. 

Historical Data of Maryland Minimum Wages 

Maryland’s minimum wage history reflects a consistent and gradual evolution in response to the economic conditions of the state and the rising cost of living. While the federal minimum wage, established in 1938, brought some relief, many workers, especially tipped workers, were left unprotected.  

In 1965, Maryland introduced its first state-specific minimum wage laws, higher than the federal minimum, to benefit both tipped and non-tipped workers. It took a more independent approach in 2005 when it raised wage rates to $6.15 per hour, above the federal rate.  

In the 2010s, the Fair Wage Act of 2014 paved the way for wages to reach $10.10 by 2018. Legislation aimed to increase it to $15.00 by 2025, later accelerating it to achieve $15.00 by 2024. 

The table below entails all the changes witnessed by the state:

Source: https://www.dol.gov/agencies/whd/state/minimum-wage/history  

Exemptions in Minimum Wages of Maryland 

• Immediate family members of employers 
• Certain agricultural workers 
• Executives, administrative, and professional (EAP) employees 
• Volunteers for educational, charitable, religious, and non-profit organizations 
• Workers under 16 years old working fewer than 20 hours per week 
• Outside salespersons and commissioned employees 
• Trainees in public school special education programs  
• Non-administrative employees at organized camps  
• Food establishments grossing under $400,000 annually  
• Drive-in theaters, and businesses involved in canning, packing, or freezing of produce/ seafood 
• Individuals exempt from receiving overtime pay, 

• • Taxicab drivers 

• • People selling/servicing automobiles, farm equipment, trailers, or trucks 

• • Workers at non-profit concerts, theaters, or festivals 

• • Employers are subject to certain railroad or transportation regulations defined by the U.S. Department of Transportation, the Federal Motor Carrier Act, and the Interstate Commerce Commission 

• • Seasonal amusement and recreational businesses that meet certain criteria.