Maryland to Gradually Increase Minimum Wage to $10.10 by 2018

Author: Michael Cardman, XpertHR Legal Editor

UPDATE: On May 5, 2014, Governor Martin O'Malley signed the bill into law. The signing makes Maryland the fifth state to enact legislation increasing the minimum wage this year, after Minnesota enacted a law in the interval between when Maryland's legislature passed its bill and the governor signed it. Also during that time, the final enrolled version of Maryland's bill was posted on the legislature's website.

April 7, 2014

Maryland's legislature has passed a bill that will increase the state's minimum wage from $7.25 to $10.10 over the next four years. 2014 Bill Text MD H.B. 295, as amended by 717170/1 and other amendments.

Governor Martin O'Malley praised the passage of the bill and is expected to sign it into law soon.

If signed, the new law will raise the minimum wage in five stages, to:

  • $8.00 on January 1, 2015;
  • $8.25 on July 1, 2015;
  • $8.75 on July 1, 2016;
  • $9.25 on July 1, 2017; and
  • $10.10 on July 1, 2018.

It also will establish a training wage, under which an employer may pay 85 percent of the minimum wage to employees under the age of 20 during the first six months of their employment.

A provision O'Malley had sought that would have tied future increases to the rate of inflation was removed during negotiations between the House and Senate.

Once the law is signed, Maryland will become the fourth state to enact legislation increasing the minimum wage this year, following in the footsteps of Connecticut, Delaware and West Virginia.

Maryland's actions attracted the attention of President Obama, who has made increasing the minimum wage one of his top domestic priorities for 2014. "The Maryland Legislature did the right thing for its workers today by increasing the state minimum wage to $10.10 an hour," he said in a statement. "Maryland's important action is a reminder that many states, cities and counties - as well as a majority of the American people - are way ahead of Washington on this crucial issue."

Although the prospects of a federal increase appear dim, chances are good that other states will follow Maryland's lead. As of today, 240 minimum wage bills have been introduced in 41 state legislatures and efforts are underway in at least 10 states to add minimum wage resolutions to the November ballots.