The Maryland Labor Law Guide

Minimum wage is the lowest hourly rate an employer can legally pay. The federal rate is a floor, and states, cities, and regions can set their own higher rates.

The statewide rate in Maryland is $15.00 per hour for all employers. Some counties set higher local rates.

Montgomery County

Montgomery County keeps higher minimum wage rates that vary by employer size and adjust annually on July 1.

• Large employers (51 or more employees): $17.65, increasing to $18.00 effective July 1, 2026.
• Mid-sized employers (11 to 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.

The tipped minimum wage, or minimum cash wage, is the lowest hourly base pay for employees who customarily and regularly receive more than $30 a month in tips.

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

The statewide rate is $3.63 per hour for most tipped employees. Some cities and counties set their own tipped cash wages.

City and county tipped 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 overtime rules under the Maryland Wage and Hour Law (MWHL), which runs alongside the federal Fair Labor Standards Act (FLSA). Employers must apply the standard most beneficial to the employee, which generally means paying non-exempt employees time and a half for every hour worked over 40 in a workweek.

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 wage and hour laws generally require employers to give nonexempt employees under the age of 18 who work more than 5 consecutive hours 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 required break length depends on the shift length:

• 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.

The HREA does not apply to employees working at a single retail location with 5 or fewer employees, or to administrative and corporate office workers.

Vacation leave

Maryland does not require employers to provide paid time off. If an employer chooses to offer vacation leave, the Maryland Wage Payment and Collection Law (MWPCL) requires all accrued, unused vacation to be paid out when an employee is terminated, unless the employer has a written policy that explicitly states unused leave is forfeited and the employee was given written notice of that policy at 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 earn sick and safe leave at the rate of 1 hour for every 30 hours worked.

Employees may earn up to 40 hours of leave per year. Employers must let employees carry over unused leave to the following year, up to a maximum total accrual cap of 64 hours.

Coming soon: Maryland is 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. If an employer sets a formal written policy promising paid holidays, those hours count as legally enforceable wages under Maryland law.

Minors under 14

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

Minors 14 to 15 years old

• Can work up to 3 hours per day, 18 hours per week when school is in session.
• Can 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. Hours can extend to 9 PM during the summer (June 1 through Labor Day).
• Must obtain a valid work permit from the Maryland Department of Labor.

Minors 16 to 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 get at least 8 consecutive hours of non-work, non-school time in each 24-hour period.
• 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 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.