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REMINDER: Maryland’s new minimum wage is in effect, $11.60 or $11.75 depending on size of business

| January 03, 2021, 04:14 PM

As if running a small business wasn’t hard enough in 2020, employers who employ minimum wage workers are about to take another hit beginning tomorrow. The other side of the double-edged sword is that those who do work for minimm wage are about to get a 6% raise. Yes, the minimum wage is increasing to either $11.75 or $11.60 per hour.

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In 2019, the Maryland legislature passed a bill raising the minimum wage from $10.10 per hour to $15.00 per hour over a period of several years.  Employers with 15 or more employees have until 2025 and those with fewer than 15 employees have until 2026.

Governor Hogan vetoed the bill saying it would cause job losses and hurt small businesses. The Democratic controlled legislature immediately overrode the veto and the change became law. Minimum wage went from $10.10 per hour to $11.00 per hour in January 2020 for all empoyers. The scaled increases were to begin

Starting tomorrow, January 1, 2021, minimum wage will increase from $11.00 per hour to $11.75 for businesses that employ 15 or more people. For businesses that employ fewer than 15, the wage inceases to $11.60 per hour.  Tipped employees will remain at $3.63 and that salary, plus reported tips, must equal or exceed the required minimum wages.

Per the legislation, by July of 2026, minimum wage for all workers in Maryland will be $15.00 per hour.

  • January 2022. 15 or more will increase from $11.75 to $12.50. Fewer than 15 will increase from $11.60 to $12.20.
  • January 2023. 15 or more will increase from $12.50 to $13.25. Fewer than 15 will increase from $12.20 to $12.80.
  • January 2024. 15 or more will increase from $13.25 to $14.00. Fewer than 15 will increase from $12.80 to $13.40.
  • January 2025. 15 or more will increase from $14.00 to $15.00. Fewer than 15 will increase from $13.40 to $14.00.
  • January 2026. Fewer than 15 will increase from $14.00 to $14.60.
  • July 2026. Fewer than 15 will increase from $14.60 to $15.00.

Severn Bank

 

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