Understanding Maryland's New Minimum Wage Law in 2025
If you live or work in Maryland, it's important to understand how the upcoming minimum wage changes in 2025 will impact you. Whether you're an employee trying to plan your finances or an employer preparing your payroll, this guide provides everything you need to know about Maryland's minimum wage law updates.
What Is the Minimum Wage in Maryland for 2025?
Starting January 1, 2025, the minimum wage in Maryland will be $15.00 per hour for most workers. This change marks the final phase of the statewide plan to gradually increase the minimum wage since 2019.
The Maryland General Assembly passed legislation titled the "Fight for Fifteen" act in 2019 to gradually increase wages for workers across the state. The new $15.00 per hour minimum wage will now apply uniformly across most industries.
Does Maryland Have a Different Minimum Wage by Employer Size?
No. Beginning in 2025, the difference in wage rates based on employer size is eliminated. Previously, smaller employers had a different wage phase-in schedule. This is no longer applicable under the 2025 wage law.
How Does Maryland's Minimum Wage Compare to Federal Minimum Wage?
As of 2025, Maryland’s minimum wage of $15.00 per hour is significantly higher than the federal minimum wage of $7.25 per hour. The federal rate has remained unchanged since 2009. Because Maryland's state law requires a higher wage, employers must pay the greater amount.
Who Is Covered Under the Maryland Minimum Wage Law?
Most workers in Maryland are covered under the state's minimum wage law. This includes:
- Full-time employees
- Part-time employees
- Hourly wage earners
- Non-tipped workers
However, some exceptions apply. Certain categories of workers may not be entitled to the full minimum wage.
Are There Any Exceptions to the Minimum Wage in Maryland?
Maryland labor laws allow a few exceptions to the standard minimum wage:
- Tipped employees: Employers may pay tipped workers a lower base wage, currently $3.63 per hour, as long as reported tips bring total earnings to at least $15.00 per hour.
- Youth workers under age 18: May be paid 85% of the state minimum wage for the first six months of employment.
- Certain agricultural workers: May be exempt under specific conditions.
- Training wages: For employees in a training program, lower wages may apply for a limited time under certain state-approved guidelines.
How Will This Change Affect Maryland Workers?
For many Maryland residents, the increase to a $15.00 minimum wage means:
- Higher monthly paychecks
- Improved financial stability
- Greater ability to manage living expenses
This wage hike is especially significant for low-income households. It supports economic equity and aligns wages more closely with the cost of living in Maryland.
How Should Employers Prepare for 2025 Minimum Wage Changes?
If you're a business owner in Maryland, it’s essential to adjust your payroll systems in advance of January 1, 2025. Here's what you can do:
- Review employee wages to ensure compliance with the $15.00 per hour standard
- Update payroll software or systems to reflect the new minimum wage
- Budget for increased labor costs, especially if you have multiple hourly workers
- Communicate proactively with employees about the upcoming wage change
Being compliant with Maryland labor laws helps avoid penalties and keeps your workforce informed and motivated.
Benefits of Raising the Minimum Wage in Maryland
Supporters of the increase point to several benefits of a higher minimum wage:
- Reduces income inequality
- Encourages workforce participation
- Boosts local economic activity by increasing consumer spending
- Improves employee retention and morale
When workers earn more, they often spend more—benefiting businesses and communities across the state.
Popular Search Queries About Maryland Minimum Wage in 2025
- Is Maryland minimum wage going up in 2025?
- What is the minimum wage for tipped workers in Maryland 2025?
- Will small businesses in Maryland have to pay $15 in 2025?
- Maryland minimum wage vs federal minimum wage 2025
- Who qualifies for minimum wage in Maryland?
Frequently Asked Questions
What is the Maryland minimum wage for tipped employees in 2025?
In 2025, the base wage for tipped employees remains at $3.63 per hour. However, tips must bring total hourly earnings to at least $15.00. If they do not, employers are required to make up the difference.
Do Maryland counties have different minimum wage laws?
Some counties, such as Montgomery County, have their own minimum wage regulations that can differ from state law. Always check your local jurisdiction for any additional requirements.
When does the new Maryland minimum wage take effect?
The $15.00 hourly minimum wage takes effect statewide on January 1, 2025.
How does the new law impact small businesses?
All employers in Maryland—regardless of size—must comply with the new minimum wage. Small businesses should plan ahead and adjust budgets to accommodate increased labor costs.
Can an employer pay below minimum wage in Maryland?
No. With very limited exceptions, all employers must pay at least the minimum wage set by state law. Failure to comply can result in penalties or legal action.
Final Thoughts: Be Ready for the 2025 Maryland Wage Increase
The shift to a $15.00 minimum wage in Maryland represents a major milestone in the state's labor policy. For workers, it offers greater earnings and financial security. For employers, it requires planning and transparency to remain compliant.
By preparing early, you can take full advantage of the opportunities this change offers—whether you're building a career or running a business in Maryland. Stay informed, stay compliant, and support your local workforce in 2025 and beyond.
