Maryland Minimum Wage and Overtime Changes Take Effect

Author: Michael Cardman, XpertHR Legal Editor

Implementation Date: July 1, 2014

Effective July 1, 2014, a new Maryland law will:

  • Establish that the maximum tip credit will be the minimum wage less $3.63;
  • Establish a training wage for employees under the age of 20 during the first six months of their employment;
  • Eliminate the minimum wage and overtime exemptions for:
    • Individuals 62 years old or older who are employed no more than 25 hours in a week; and
    • Employees of non-drive-in motion picture theaters;
  • Eliminate the overtime exemptions for:
    • Employees of hotels or motels;
    • Employees of a restaurant;
    • Employees of a gas station;
    • Employees of a bona fide country club; and
    • Employees of a not-for-profit entity engaged primarily in providing temporary at-home care services, such as companionship or delivery of preferred meals, to aged or sick individuals, individuals with disabilities or individuals with a mental disorder;
  • Raise the annual gross income limit from $250,000 to $400,000 that cafes, drive-ins, drugstores, restaurants, taverns or other similar establishments that sell food and drink for consumption may not exceed to claim a minimum wage and overtime exemption;
  • Repeal the alternative work periods for calculating overtime currently available for certain employees; and
  • Allow employees who are not paid the required minimum wages and/or overtime to recover liquidated damages and attorney fees in addition to unpaid wages.

+Md. LABOR AND EMPLOYMENT Code Ann. § 3-403, +Md. LABOR AND EMPLOYMENT Code Ann. § 3-413, +Md. LABOR AND EMPLOYMENT Code Ann. § 3-415,+Md. LABOR AND EMPLOYMENT Code Ann. § 3-419 and +Md. LABOR AND EMPLOYMENT Code Ann. § 3-420, as reenacted by +2014 Bill Text MD H.B. 295.