Maryland becomes the eighteenth state to increase the minimum wage above the federal $5.15. The new rate of $6.15 takes effect from Thursday, February 16, 2006.

Certain employees and establishments are exempt from both the minimum wage and overtime provisions. Exemptions include certain agricultural workers, executives, administrative and professional employees; employees of educational, charitable, religious and other non-profit organizations where the employee is working as a volunteer; employees of restaurants, cafes, drive-ins and drug stores which sell food and drink for consumption on the premises where the annual gross is less than $250,000, employees of motion picture and drive-in theaters; employees under 16 years of age working less than 20 hours per week; outside salesmen and individuals compensated on a commission basis; individuals 62 years of age and working not more than 25 hours a week; employees of establishments engaged in the first canning, packing or freezing of fruits, vegetables, poultry and seafood; the immediate family of the employer; those employees enrolled in a special educational program and non-administrative employees of organized camps

Employers are allowed to pay tipped employees (defined as employees regularly earning more than $30 per month in tips) not less than $3.08 per hour, provided each worker earns enough tips to bring their average hourly wage to at least the state minimum. Deficiencies must be supplemented by the employer to the minimum wage level.

Employers covered by the federal Fair Labor Standards Act may pay an opportunity wage of $4.25 per hour to employees under 20 years of age during their first 90 consecutive calendar days of employment with an employer. Employers are prohibited from displacing employees in order to hire youth at the opportunity wage rate. Also prohibited are partial displacements such as reducing employees' hours, wages, or employment benefits.

...back to 26 January 2006

Further information:
Maryland Minimum Wage

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