The New Maryland Minimum Wage

by Pessin Katz Law, P.A.
Contact

The Maryland General Assembly has passed a new Minimum Wage law (the “MW” in this article), which when signed by the Governor, which is a foregone conclusion, will go into effect on January 1, 2015 (House Bill (HB) 295/Senate Bill (SB) 331).

Here are some interesting changes to the Labor and Employment Article of the Annotated Code of Maryland (§3-403 and following) relating to the new law:

Some deletions from the statute:

  • Exemptions from the law were removed for those at least 62 years old employed no more than 25 hours a week as well as employees of drive-in theaters so those employees are now covered under the law.
  • Of course, the pre-HB 295 MW of $6.15 per hour is removed.

Changes to the law, other than deletions:

  • The exemption for an establishment that “sells food and drink for consumption on the premises” (not just restaurateurs) is raised from $250,000 to $400,000, or less, in annual gross income.
  • The term “employer” now includes “a governmental unit”.
  • The law implements the increased state MW as a “phase-in”:
    • From January 1, 2015 to July 1, 2015: $8.00 per hour;
    • From July 1, 2015 to July 1, 2016: $8.25 per hour;
    • From July 1, 2016 to July 1, 2017: $8.75 per hour;
    • From July 1, 2017 to July 1, 2018: $9.25 per hour; and
    • From July 1, 2018 and thereafter: $10.10 per hour.
    • An employer may pay 85% of the state MW or $7.25 an hour to an employee who is under the age of 20 years, but only for the first six months of employment provided that the employer is “an amusement or recreational establishment, including a swimming pool,” and if “the employer operates for no more than 7 months in a calendar year or “for any 6 months during the preceding calendar year, has average receipts in excess of that do not exceed one–third of the average receipts for the other 6 months.”
    • If the employer is found to have violated the MW statute the employee may recover the difference between the MW and what was paid and an additional sum equal to the difference between the MW and what was paid as liquidated damages unless the employer acted in good faith and reasonably believed itself to be in compliance with the law.
    • Under existing law an employer may “set” an amount which represents “the tips of the employee” as a “tip credit” against the MW, for those working for “tips”.  The new law sets a maximum “tip credit” equal to the MW amount less $3.63 (half the current federal minimum wage).  (According to the fiscal note to the legislation:  “Under the bill, an employer who employs a worker who receives tips may claim a tip credit of the State minimum wage, less $3.63. Thus, the tip credit increases as the minimum wage increases, and the wage paid by employers to tipped employees remains $3.63, as long as their wages plus tips equal the minimum wage.”)
    • The statute mandates that the Governor appropriate an increase of 3.5% in the State budget year over year through fiscal year 2019 for caregivers to the “developmentally disabled”.

It is important to bear in mind that for those employees subject to both the federal and state MW, those employees must be paid the greater of the two minimum wage amounts.  The current federal minimum wage is set at $7.25 per hour, but there is federal executive and legislative branch movement to increase that amount to $10.10 an hour.

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Pessin Katz Law, P.A. | Attorney Advertising

Written by:

Pessin Katz Law, P.A.
Contact
more
less

Pessin Katz Law, P.A. on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
Feedback? Tell us what you think of the new jdsupra.com!