The Maryland General Assembly recently enacted legislation that will begin impacting employers as early as this summer.
Effective June 1, 2019, Maryland’s minimum wage is set to increase 75 cents every January until the year 2025, at which time it will increase one dollar to reach $15.00 per hour. Employers with fewer than 15 employees will have a longer phase-in period, but must ultimately reach a minimum wage of $15.00 per hour by July 1, 2026. Also of note included in the bill:
- Restaurant employers that use a tip credit must provide tipped employees with a wage statement for each pay period which shows the effective hourly tip rate.
- An employer may no longer pay a training wage or 85% of the State minimum wage rate to employees younger than 20 for the first six months of work.
- Employers may pay 85% of the State minimum wage rate to employees younger than 18.
Effective October 1, 2019, non-compete or conflict-of-interest provisions in employment contracts of employees making less than $15 per hour or $31,200 annually will be null and void as being against the public policy of the State. This law is inapplicable with respect to client-related information, but applies regardless of whether the agreement was entered in the State.
Andrew Scott is a Member of PK Law and part of the firm’s Labor and Employment Group. He represents private sector employers and public schools before federal and state courts, federal and state civil rights agencies, and the Maryland Office of Administrative Hearings on a variety of matters, including employment discrimination litigation, collective bargaining, teacher and student discipline, construction and procurement, and wage and hour claims. Mr. Scott also advises clients on the design and implementation of employment agreements, employee handbooks, policies and procedures. Mr. Scott can be reached at 410-339-6744 or email@example.com.