On July 1, 2018, new minimum wage rates went into effect for both Maryland and the District of Columbia. All employees who do not qualify for an exemption must be paid in accordance with the new rates. The changes provide a good opportunity for employers to audit pay practices to ensure compliance with wage and hour laws. Defense of a pay claim comes at a substantial cost and a simple review now can serve to mitigate or even eliminate complex litigation down the line.
For Maryland, the new minimum wage rate is $10.10 an hour, up from $9.25 in 2017. This is the final step of a gradual increase which began in 2015. For Montgomery County, minimum wage rates have increased to $12.25 an hour for employers with 51 or more employees, and $12.00 an hour for employers with 50 or fewer employees. For Prince George’s County, the current rate is $11.50 an hour, which became effective October 1, 2017.
District of Columbia
For employees in the District of Columbia, the minimum wage rate increased to $13.25 an hour on July 1, 2018. Employees will continue to see incremental increases during successive years, up to $15 an hour in 2020, after which the rate will be tied to inflation.