The Maryland Labor Law Guide

Minimum wage is the lowest hourly pay rate that employers are legally obligated to pay employees. The federal minimum wage is a wage baseline, but different states, cities, and regions can adopt their own rates.

Maryland’s current statewide rate is: $15.00 per hour for all employers.

Local jurisdictions with higher minimum wages: 

Montgomery County 

Montgomery County maintains higher minimum wage rates that vary by employer size and are adjusted annually on July 1.

• Large employers (51+ employees): $17.65

  • Increasing to $18.00 effective July 1, 2026.

• Mid-sized employers (11–50 employees): $16.00

  • Increasing to $16.50 effective July 1, 2026.

• Small employers (10 or fewer employees): $15.50

  • Increasing to $15.95 effective July 1, 2026.

Howard County 

Howard County has adopted a higher local minimum wage that varies by employer size.

• Large employers (15 or more employees): $16.00
  

• Small employers (fewer than 15 employees): $15.50

  • Increasing to $16.00 effective July 1, 2026.
    

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Tipped minimum wage (or "minimum cash wage") is the lowest hourly base pay employers are legally obligated to pay employees who customarily and regularly receive more than $30 a month in tips. 

Compliance Note: If an employee's minimum cash wage plus their tips do not equal the standard minimum wage for the workweek, the employer must pay the difference.

Maryland’s current statewide rate is: $3.63 per hour for most tipped employees.

Maryland city and county-specific tipped minimum cash wages:

• Montgomery County: $4.00

• Prince George’s County: $3.63

• Baltimore City: $3.63

• Howard County: $3.63

• Annapolis City: $3.63

Maryland enforces its own state overtime regulations under the Maryland Wage and Hour Law (MWHL), which operates alongside the federal Fair Labor Standards Act (FLSA). Employers must apply the standard that is most beneficial to the employee, which generally requires non-exempt employees to receive paid time and a half for every hour worked over 40 hours within a workweek.

Compliance note: Maryland law contains state-specific overtime exemptions and alternative thresholds that differ from the FLSA, such as a 60-hour overtime threshold for certain agricultural workers.

Maryland’s wage and hour laws generally require employers to provide nonexempt employees under the age of 18 who work more than 5 consecutive hours with a 30-minute non-working break.

The Healthy Retail Employee Act (HREA) requires covered retail employers with 50 or more employees in the state to provide non-exempt employees with shift breaks. The mandated break durations depend on the length of the employee’s shift:

• Shifts of 4 to 6 consecutive hours: At least one 15-minute break.

• Shifts of more than 6 consecutive hours: At least one 30-minute break.

• Shifts of 8 or more consecutive hours: A 30-minute break, plus an additional 15-minute break for every additional 4 consecutive hours worked. (Compliance 

Note: the HREA does not apply to employees working at a single retail location with 5 or fewer employees, or to administrative/corporate office workers).

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Vacation leave

Maryland does not require employers to provide paid time off to their employees. However, if an employer chooses to offer vacation leave, the Maryland Wage Payment and Collection Law (MWPCL) dictates that all accrued, unused vacation time must be paid out upon an employee's termination unless the employer has a written policy explicitly stating that unused leave is forfeited, and the employee was given written notice of this policy at the time of hire.

Paid sick leave

The Maryland Healthy Working Families Act (MHWFA) requires employers with 15 or more employees to provide paid sick and safe leave for certain employees. Employers with 14 or fewer employees must provide unpaid sick and safe leave.

Employees are entitled to earn sick and safe leave at the rate of 1 hour for every 30 hours worked.

Compliance note: Employees may earn up to 40 hours of leave per year. However, employers must allow employees to carry over unused leave to the following year, up to a maximum total accrual cap of 64 hours.

Upcoming compliance: Maryland is currently rolling out a paid Family and Medical Leave Insurance (FAMLI) program under the Time to Care Act, with employee benefits scheduled to take effect in 2026.

Holidays

Maryland law does not require private-sector employers to provide paid holidays, unpaid holiday leave, or premium pay for working on a holiday. However, if an employer establishes a formal written policy promising paid holidays, those hours are considered legally enforceable wages under Maryland law.

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Laws for minors under 14

Minors under 14 years old are generally prohibited from working. Statutory exceptions include work in a business owned by a parent/guardian, certain agricultural work, or employment as a performer/entertainer (which requires a special permit from the state).

Specific laws for minors 14–15 years old

• Able to work up to 3 hours per day, 18 hours per week when school is in session.

• Able to work up to 8 hours per day, 40 hours per week when school is not in session.

• Cannot work before 7 AM or after 7 PM. However, hours can be extended to 9 PM during the summer (June 1 through Labor Day).

• Must obtain a valid work permit from the Maryland Department of Labor.

Specific laws for minors 16–17 years old

• Must obtain a valid work permit from the Maryland Department of Labor.

• Total combined school and work hours cannot exceed 12 hours in a single calendar day.

• Must be provided at least 8 consecutive hours of non-work, non-school time in each 24-hour period.

• (Compliance note: Maryland does not impose strict weekly hour caps or specific time-of-day curfews for 16- and 17-year-olds, but the 12-hour combined daily limit strictly governs scheduling).

Hazardous occupations

Minors under 18 are prohibited from working in hazardous occupations declared by the state and federal government, such as construction, demolition, mining, operating heavy power-driven machinery, or handling hazardous chemicals.

Hiring
Maryland follows the federal law that prohibits employers from hiring discrimination based on the following characteristics:

• Race

• Color

• Age

• Sex

• Sexual orientation

• Gender

• Gender identity

• Region

In addition, Maryland prohibits employers with 15 or more employees from discriminating on marital and credit information. 

Firing
Maryland employers have the right to terminate employees at will for nearly any reason and no reason at all provided the reason is not unlawful. However, they cannot fire an employee for discrimination, public policy, contract, or harassment.