Minimum Wage $15.00 / HR
Under Maryland's Fair Wage Act, the state minimum wage is $15.00 per hour for all employers, regardless of company size. That is well above the federal rate of $7.25, and when state and federal rates differ, the higher rate applies.
Tipped employees, meaning workers who regularly earn more than $30 a month in tips, must be paid a direct cash wage of at least $3.63 per hour. That cash wage plus tips must equal at least $15.00 per hour. When it does not, the employer is required to make up the difference. Workers under 18 may be paid 85% of the minimum wage.
Overtime Laws 1.5X RATE
Maryland follows the FLSA for overtime. Most employees must be paid one and a half times their regular rate for all hours worked over 40 in a workweek. At the state minimum wage, that comes to $22.50 per hour.
Overtime is calculated on a weekly basis. Working long hours on a single day does not trigger overtime unless total hours for the entire week exceed 40. Some agricultural workers have a different threshold and only earn overtime after 60 hours in a week.
Meal & Rest Breaks No general mandate
Maryland does not require general meal or rest breaks for most adult employees, which follows the FLSA. When an employer does provide a short break of 20 minutes or less, federal law generally requires that time to be paid. A meal period of 30 minutes or more is typically unpaid, provided the employee is fully relieved of duties for the entire period.
There is one important exception. Maryland's Healthy Retail Employee Act, sometimes called the "shift break" law, requires certain retail employers to provide breaks based on the length of the shift.
Filing a Claim 3 YEARS WINDOW
Maryland workers generally have a three-year time limit to file claims for unpaid wages under state law. Workers may also bring a claim under the federal FLSA, which has a two-year window that extends to three years when the employer's violation was willful.
Final Paychecks NEXT PAYDAY
When an employee leaves a job in Maryland, whether they quit or are let go, the employer must pay all earned wages by the next regularly scheduled payday for the pay period in which the work was performed. Withholding a final paycheck can itself be a wage violation under Maryland's Wage Payment and Collection Law.
Employee Misclassification COMMON VIOLATION
Some Maryland employers label workers as independent contractors or exempt employees to avoid paying overtime. Being called a "manager" or "supervisor" on a paystub does not, by itself, create an exemption. What matters is the actual working relationship and the day-to-day duties of the job, measured against the legal duties test.
This article is provided for informational and educational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship with Josephson Dunlap LLP. Wage and hour laws vary by state, and the application of these laws depends on the specific facts of each situation. The figures and information cited above are current as of the date of publication and are subject to change. Prior results in other matters do not guarantee or predict a similar outcome in any future matter. If you believe your wages were not paid correctly, consult a qualified, licensed employment attorney.
Could You Be Owed Back Wages?
Josephson Dunlap reviews wage claims for Maryland workers at no cost. There is no fee unless wages are recovered. A case manager will go through your situation and tell you where you stand.