Montgomery County, MD Wage Increase to Take Effect July 1, 2018
Montgomery County, Maryland employers are reminded that the County minimum wage is scheduled to increase July 1, 2018. Below is a chart showing the phased-in increase of the minimum wage over the next several years:
|Effective Date||Large Employer||Mid-Sized Employer||Small Employer|
|July 1, 2018||$12.25||$12.00||$12.00|
|July 1, 2019||$13.00||$12.50||$12.50|
|July 1, 2020||$14.00||$13.25||$13.00|
|July 1, 2021||$15.00||$14.00||$13.50|
The amount of the minimum wage is a function of the size of the employer. Specifically, the amount is a function of whether the employer is considered a “large” employer, a “mid-sized” employer or a “small” employer. The definition of large, mid-sized and small employer is as follows:
A “large employer” is an employer who employs 51 or more employees;
A “mid-sized employer” is an employer who:
- Employs between 11 and 50 employees; or
- Employs 11 or more employees and:
- Has tax exempt status under Section 501(c)(3) of the Internal Revenue Code; or
- Provides “home health services” as defined by 42 C.F.R. §440.70 or “home or community-based services” as defined by 42 C.F.R. §440.180, and receives at least 75% of gross revenues through state and federal Medicaid programs.
A “small employer” is an employer who employs ten or fewer employees.
Tipped employees (that is, those earning more than $30 in tips) must earn the applicable Montgomery County minimum wage rate. Montgomery County employers must pay at least $4.00 per hour. This amount, plus tips, must equal the Montgomery County minimum wage rate.
Among other things, the new increase in the minimum wage will impact overtime calculations for eligible employees. If they have not already done so, Montgomery County, Maryland employers should take appropriate steps to comply the new minimum wage requirements.
Marc Engel is an employment attorney who advises in-house counsel, business owners and executives, human resources professionals, and managers on a myriad of employment issues, including federal, state, and local wage and hour laws. For more about the new minimum wage requirements, contact Marc at firstname.lastname@example.org or 301-657-0184. Nida Kanwal, an employment attorney who represents management in workplace employment matters, assisted with this article.