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When Will New Minimum Wage Requirements Affect Your Payroll?

Author: Michael A. Faerber Date: 07/31/2014

Categories: Corporate and Business Law, Employment Law & Litigation, Legal Issues For Restaurant Owners

Get ready. As early as October 1, 2014 higher minimum wage requirements begin to take effect around Maryland. That’s the date when new local laws start to impact businesses in Montgomery and Princes George’s Counties. Elsewhere in Maryland, new statewide requirements (which are lower than those in Montgomery and Prince George’s) take effect a few months later on January 1, 2015 (increases in the District of Columbia started on July 1).  In all cases, additional annual increases are built into the laws over the next several years.

 

The different jurisdictions permit a range of exemptions, exceptions and deductions, involving such categories as types of jobs, ages of employees and tipped workers.  If you have specific questions or would like advice about how the laws apply to and affect your business, please contact Michael Faerber at mfaerber@mcmillanmetro.com.

 

For your convenience, here are general details for each of the jurisdictions.  You can also download a PDF of this grid by clicking here.

 

Montgomery County and Prince George’s County Requirements (at least the greater of the minimum wage required under Federal law, the State law, or as follows):

 

October 1, 2014-September 30, 2015     $8.40 per hour

October 1, 2015-September 30, 2016     $9.55 per hour

October 1, 2016-September 30, 2017     $10.75 per hour

October 1, 2017 & thereafter              $11.50 per hour

 

Maryland State Requirements (at least the greater of the minimum wage under the Federal law, or as follows):

 

January 1, 2015-June 30, 2015            $8.00 per hour

July 1, 2015-June 30, 2016                   $8.25 per hour

July 1, 2016-June 30, 2017                  $8.75 per hour

July 1, 2017-June 30, 2018                  $9.25 per hour

July 1, 2018 & thereafter                       $10.10 per hour

 

District of Columbia Requirements (the greater of the minimum wage set by the United States government plus $1, or as follows):

 

July 1, 2014-June 30, 2015                  $9.50

July 1, 2015-June 30, 2016                  $10.50

July 1, 2016-June 30, 2017                  $11.50

July 1, 2017 & thereafter                       $11.50*

*Plus the annual average increase in the CPI for All Urban Consumers in the Washington Metropolitan Statistical Area for the preceding 12 months

 

Federal Requirement (as of July 29, 2014):   $7.25 per hour