Key Takeaways
• Maryland state’s 2025 minimum wage is $15.00 per hour for all employers, including small businesses.
• Montgomery County has higher local wages: up to $17.65 per hour based on employer size from July 1, 2025.
• Special wages apply for tipped employees ($3.63 base), youth workers (85% first 90 days), and learners ($4.25).
If you’re an immigrant worker, employer, or business owner in Maryland state, understanding the minimum wage rules for 2025 is essential. These rules affect your pay, your hiring decisions, and your legal responsibilities. This step-by-step guide will help you follow Maryland’s minimum wage laws, including special rules for tipped employees and youth workers. You’ll also learn about local differences, especially in Montgomery County, and get practical tips to avoid common mistakes.
Let’s break down everything you need to know about the minimum wage in Maryland state for 2025, with clear steps, time estimates, and a checklist to keep you on track.
Step 1: Understand the Purpose and Scope of Maryland’s Minimum Wage Law
Purpose:
Maryland’s minimum wage law sets the lowest hourly pay that most workers can legally receive. The goal is to make sure workers earn enough to cover basic living costs and to protect them from unfairly low pay.
Who Must Follow the Law?
– All employers in Maryland state must pay at least the minimum wage, no matter how many employees they have.
– Tipped employees (like restaurant servers) have special rules.
– Youth workers and some other groups have exceptions.
Time Estimate:
Reading and understanding this section: 10 minutes
Step 2: Identify the 2025 Minimum Wage Rates in Maryland State
A. Standard Minimum Wage for Most Workers
- As of January 1, 2025, the minimum wage in Maryland state is $15.00 per hour for all employers.
- This rate applies to both large employers (15 or more employees) and small employers (fewer than 15 employees).
B. Tipped Employees
- Tipped minimum wage is $3.63 per hour.
- Employers must make sure that tips plus this wage add up to at least $15.00 per hour.
- If tips fall short, the employer must pay the difference.
C. Youth Workers
- Workers under 18 years old can be paid 85% of the standard minimum wage for their first 90 days.
- In 2025, this is $12.75 per hour.
D. Special Exceptions
Some workers can be paid less than the standard minimum wage:
– Learners: First 90 days at $4.25 per hour.
– Workers with disabilities: If they have a federal certificate.
– Certain agricultural workers and family members.
– Some nonprofit and work training programs.
Time Estimate:
Reviewing and applying these rates: 15 minutes
Step 3: Check for Local Minimum Wage Differences (Montgomery County)
A. Why Local Rules Matter
While most counties in Maryland state must follow the state minimum wage, Montgomery County has higher local rates that adjust every year for inflation.
B. Montgomery County Minimum Wage Rates (Effective July 1, 2025):
- 51 or more employees: $17.65 per hour
- 11 to 50 employees: $16.00 per hour
- 10 or fewer employees: $15.50 per hour
C. How to Know If You’re Affected
- If your business is located in Montgomery County, you must pay the higher local rate.
- If you work in Montgomery County, you should receive the local minimum wage.
Time Estimate:
Checking your location and employer size: 5 minutes
Step 4: Calculate Wages for Tipped Employees
A. What Counts as a Tipped Employee?
A tipped employee is someone who regularly receives more than $30 per month in tips (for example, restaurant servers, bartenders, hotel staff).
B. How to Calculate Pay for Tipped Employees
- Base Wage: Employer pays at least $3.63 per hour.
- Tips: Add all tips received during the pay period.
- Total Earnings: Add base wage and tips.
- Check: If total is less than $15.00 per hour, employer must pay the difference.
Example:
– A server works 40 hours and earns $100 in tips for the week.
– Base wage: 40 hours x $3.63 = $145.20
– Tips: $100
– Total: $245.20
– Minimum required: 40 hours x $15.00 = $600
– Shortfall: $600 – $245.20 = $354.80 (employer must pay this amount)
Time Estimate:
Calculating and tracking pay: 10 minutes per pay period
Step 5: Apply Youth and Learner Wage Exceptions
A. Youth Workers (Under 18 Years Old)
- For the first 90 days, pay can be 85% of the minimum wage ($12.75 per hour in 2025).
- After 90 days, pay must increase to the full minimum wage.
B. Learners
- For the first 90 days, learners can be paid $4.25 per hour.
- This exception is for workers in training or learning a new job.
C. Special Programs
- Some nonprofit and work training programs for people with disabilities can pay less, but only with a federal certificate.
Time Estimate:
Setting up pay for youth/learners: 5 minutes per new hire
Step 6: Adjust Payroll and Recordkeeping Systems
A. Update Payroll Systems
- Make sure your payroll software or provider is set to the correct minimum wage rates.
- For Montgomery County businesses, update rates each July.
B. Track Tipped Employees’ Earnings
- Keep detailed records of base pay and tips for each pay period.
- Adjust pay if tips do not bring total earnings up to the minimum wage.
C. Monitor Youth and Learner Pay
- Track start dates to know when 90-day periods end.
- Increase pay to the standard minimum wage after 90 days.
D. Keep Records for at Least 3 Years
- Maryland law requires employers to keep wage and hour records for at least three years.
Time Estimate:
Updating systems and training staff: 1-2 hours initially, 10 minutes per pay period
Step 7: Stay Informed About Legislative Changes
A. Recent Changes
- The Fair Wage Act of 2023 sped up the move to a $15.00 minimum wage for all employers by 2024.
- As of early 2025, there are no scheduled increases beyond $15.00 statewide, but proposals exist to raise it to $20.00 by 2028.
B. Possible Future Changes
- Proposed laws may:
- Raise the minimum wage to $17.00 in 2027 and $18.50 in 2028.
- Eliminate subminimum wages for tipped employees.
- Strengthen wage theft enforcement.
C. Where to Find Updates
- Maryland Department of Labor: Official Maryland Minimum Wage Information
- Local government websites for Montgomery County.
Time Estimate:
Checking for updates: 10 minutes per quarter
Step 8: Avoid Common Pitfalls and Troubleshoot Problems
A. Common Mistakes
- Paying below the minimum wage due to outdated payroll settings.
- Not tracking tips correctly for tipped employees.
- Missing the end of the 90-day period for youth or learner pay.
- Ignoring local wage rates in Montgomery County.
- Failing to keep proper records for wage and hour laws.
B. Troubleshooting Tips
- If you discover underpayment:
- Correct the error immediately and pay any back wages owed.
- Notify affected employees in writing.
- If you’re unsure about the correct rate:
- Contact the Maryland Department of Labor or a qualified payroll provider.
- If you receive a complaint or inspection notice:
- Gather all payroll records and cooperate with investigators.
- Seek legal advice if needed.
C. For Tipped Employees
- If your tips plus base wage do not reach $15.00 per hour, talk to your employer right away.
- If the problem is not fixed, you can file a complaint with the Maryland Department of Labor.
Time Estimate:
Resolving issues: Varies, usually 1-2 hours per incident
Step 9: Use a Checklist to Stay Compliant
Maryland Minimum Wage Compliance Checklist (2025):
- [ ] Confirm your business location and check if local rates apply (especially in Montgomery County).
- [ ] Set payroll systems to at least $15.00 per hour for all employees (or higher local rates).
- [ ] For tipped employees, pay at least $3.63 per hour and track tips to ensure total pay meets $15.00 per hour.
- [ ] For youth workers and learners, apply correct exceptions and monitor 90-day periods.
- [ ] Keep wage and hour records for at least three years.
- [ ] Review legislative updates at least quarterly.
- [ ] Train managers and payroll staff on current wage laws.
- [ ] Respond quickly to any wage complaints or errors.
Step 10: Practical Guidance for Immigrants, Employers, and Workers
For Immigrant Workers:
– Know your rights. You are entitled to the same minimum wage as any other worker in Maryland state, regardless of your immigration status.
– If you are a tipped employee, make sure your total pay (wages plus tips) is at least $15.00 per hour.
– If you are under 18, check that you are paid at least $12.75 per hour for your first 90 days, then $15.00 per hour after that.
– If you think you are being underpaid, you can file a complaint with the Maryland Department of Labor. Your immigration status is not shared with federal authorities when you report wage violations.
For Employers:
– Review all employee pay rates and adjust as needed to meet the minimum wage.
– For businesses in Montgomery County, remember to use the higher local rates.
– Carefully track tips for tipped employees and make up any shortfall.
– Monitor youth and learner pay periods to avoid violations.
– Keep detailed records and update payroll systems regularly.
– Stay informed about possible future increases and prepare your budget accordingly.
For Small Business Owners:
– Consider using payroll software or services to help manage wage compliance.
– Plan for higher labor costs, especially if you have tipped employees or operate in Montgomery County.
– Seek help from the Maryland Department of Labor or business support organizations if you have questions.
Additional Resources
- Maryland Department of Labor – Wage and Hour Information:
https://www.dllr.state.md.us/labor/wages/ - Montgomery County Minimum Wage Information:
https://www.montgomerycountymd.gov/humanrights/minimum-wage.html - Payroll Tools:
Services like Connecteam and Square can help track hours and pay.
As reported by VisaVerge.com, Maryland’s minimum wage changes reflect a strong push to improve living standards, especially for low-wage and immigrant workers. The state’s $15.00 minimum wage is now among the highest in the United States 🇺🇸, and local rates in Montgomery County are even higher. Lawmakers and advocates continue to discuss further increases and stronger protections for tipped employees.
Summary Checklist
Before you finish, make sure you:
– Understand the minimum wage rules for your location and job type.
– Apply the correct rate for standard, tipped, youth, and learner employees.
– Update payroll systems and keep good records.
– Watch for future changes in the law.
– Seek help if you have questions or run into problems.
By following these steps, you can make sure you’re paid fairly or that your business stays on the right side of Maryland state’s minimum wage laws. For the most current information, always check the Maryland Department of Labor’s official wage page.
Key Takeaway:
In 2025, the minimum wage in Maryland state is $15.00 per hour for all workers, with higher rates in Montgomery County and special rules for tipped employees and youth workers. Stay informed, keep good records, and use this guide to help you follow the law and protect your rights.
Learn Today
Minimum Wage → The lowest legal hourly pay employers must provide to most workers to ensure fair compensation.
Tipped Employees → Workers who earn at least $30 monthly in tips and have a lower base wage plus tips.
Youth Workers → Employees under 18 eligible for 85% of minimum wage for their first 90 days of employment.
Learners → Workers in training who can be paid a lower hourly wage during the initial 90-day period.
Montgomery County → A Maryland region with higher minimum wage rates that adjust annually for inflation.
This Article in a Nutshell
Maryland’s 2025 minimum wage is $15.00 per hour statewide, with higher local rates in Montgomery County. Special rules apply for tipped employees and youth workers. Employers must update payroll and keep records to comply. This guide outlines key wage rates, exceptions, and practical tips for workers, employers, and immigrant communities.
— By VisaVerge.com
