Maryland Labor Laws Guide

Maryland wage laws

Regarding wages, Maryland has the following laws, regulations, and limitations.

Maryland minimum wage

In 2024, the State of Maryland has a minimum wage requirement of $15.00 per hour. This rule applies to all businesses, no matter how many employees they have.

Some Maryland counties, however, have different hourly minimum wages.

In Montgomery County, starting from July 1, 2024, the minimum wages are the following:

• For small businesses with 10 or fewer employees — $15.00 per hour,
• For businesses with 11–50 employees — $15.50 per hour, 
• For businesses with 51 employees or more — $17.15 per hour, and
• For employees that receive tips — $4.00 per hour.

In Prince George’s County, starting from July 1, 2024, the minimum wage will be $17.10 per hour.

In Howard County, starting from July 1, 2024, the minimum wage will be $16.00 per hour.

Tipped minimum wage in Maryland

Tipped employees are individuals working in an industry where they regularly and customarily receive tips up to $30 per month.

In Maryland, the current tipped minimum wage is $3.63 per hour. However, tipped employees must receive at least the minimum wage (tipped minimum wage + tips) for each hour worked. If they do not, the employer has to make up the difference. 

Subminimum wage in Maryland

Under federal law, employers can pay employees under 20 years of age a subminimum wage of $4.25 for the first 90 calendar days of their employment.

When it comes to employees under 18 years of age, employers are allowed to pay them a subminimum wage equal to 85% of the minimum wage, which amounts to $12.75 per hour in Maryland.

In addition, the FLSA allows employers to pay other specific subminimum wage rates to certain types of employees, such as workers with disabilities and student learners.

Exemptions to the minimum wage in Maryland

The following are the exemptions to the minimum wage in Maryland:

• Direct family members of the employer,
• Some agricultural branches,
• Executives, administrative, and professional employees,
• Minors under 16 who work less than 20 hours per week,
• Establishments selling food and drinks on the premises (restaurants and cafes) who earn less than $400,000 per year,
• Employees who work as trainees in public school programs,
• Outside salespersons and commissioned employees,
• Volunteers for charities, educational and religious institutions, and nonprofits,
• Drive-in theaters, and
• Facilities involved with canning, freezing, and packing of fruits, vegetables, seafood, or poultry.

Under the Fair Labor Standards Act (FLSA), if an employee is subject to both the state and federal minimum wage laws — the employee is entitled to the higher minimum wage rate.

For example, if the state minimum wage is less than $7.25 per hour, employees protected by the FLSA must earn a minimum salary of at least $7.25 per hour.

Maryland payment laws

In line with the Maryland Department of Labor Law, employers are required to pay wages at least once every 2 weeks or twice a month.

Payouts should happen on the same days each month, predetermined by the employer.

Executive, professional, and administrative employees are exceptions to this law and can be paid less frequently.

Secure Maryland Wage Act

In June 2021, the State of Maryland passed the Secure Maryland Wage Act, which raises the minimum wage of employees working in “heightened security interest locations.”

According to this act, Baltimore-Washington International Thurgood Marshall Airport and Pennsylvania Station are considered “heightened security interest locations”, and their employees are paid $15.00 per hour from January 1, 2024. This rate is set to increase to $16.00 per hour on January 1, 2025.

Moreover, starting from January 1, 2026, employers are required to pay employees a regular wage of $16.00 per hour and a supplement benefit rate of at least $1.00 per hour.

Secure Maryland Wage Act covers employees who perform work at heightened security interest locations and are non-exempt under the FLSA.

The law was passed to address the high turnover in these specific positions, attract and retain experienced workers, and improve workers' rights in Maryland.

Similar laws are in place at Los Angeles International Airport, John F. Kennedy Airport, and LaGuardia International Airport.

Maryland Living Wage Law

Maryland's Living Wage Law requires private businesses that do contract work with the state government to pay a living wage to their employees.

This hourly rate is usually above minimum wage to address the rising costs of living standards.

The Living Wage Law is applicable to any and all businesses that:

• Have a contract or a subcontract with the State of Maryland, and
• Provide services to the state of $100,000 or more.

To be eligible for a living wage, an individual employee should spend at least 50% of their work time working on the project in question. Simply put, State of Maryland employees who are not a part of that particular project are not eligible.

Companies covered by this law offer maintenance and information technology services and are NOT suppliers, construction companies, or architecture-related companies and agencies.

Lastly, living wage rates differ based on the county where the services are being performed and are divided into 2 tiers:

• Tier 1 — Anne Arundel County, Baltimore City, Baltimore, Howard, Montgomery, and Prince George's Counties, and
• Tier 2 — all other counties.

The minimum living wage for Tier 1 counties is $16.63 per hour (except for Montgomery County, where it is $17.60), and the minimum living wage for Tier 2 counties is $15.00 per hour.

Maryland overtime laws

The Fair Labor Standards Act regulates overtime in Maryland.

According to the FLSA, any work time over 40 hours per week is considered overtime.

Under this rule, employers must pay their employees 1.5 times their regular wage for overtime work hours, which equals to $18.75 per hour.

However, it is important to note that employees who work more than 8 hours per day are not considered overtime eligible.

In Maryland, only employees who work more than 40 hours per week are qualified for overtime pay.

🎓 Free Employee Overtime Tracker

Overtime exceptions and exemptions in Maryland

When it comes to overtime, there are certain exceptions and exemptions in the State of Maryland.

To start with, exceptions mean that certain employees are eligible for overtime, but the rules differ from the regular ones. The following are the exceptions to overtime rules: 

• Bowling establishments and institutions providing on-premise care whose workers work over 48 hours per week, and
• Workers in agriculture who work more than 60 hours per week.

On the other hand, overtime exemptions are situations where overtime rules do not apply. The following are the exemptions from overtime rules:

• Executive positions (full-time management of 2 or more employees),
• Administrative work (business operations, management, administrative training),
• Professional work (requiring advanced education: artists, certified teachers, IT professionals), 
• Salespeople and commissioned employees,
• Taxi drivers, 
• Trainees that are part of a public school program, and
• Volunteers for charities and other non-profit organizations.

For the complete list of overtime and minimum wage exemptions, visit the Maryland Department of Labor website.

Maryland break laws

In this section, we will look at Maryland's break laws and the exceptions to these laws.

Maryland work breaks (meals and rest)

Maryland has no state regulation concerning breaks for regular employees.

The only mention of work breaks concerns employed minors, who are eligible for a 30-minute break for every 5 consecutive hours worked.

However, following federal law on break time, Maryland employers can provide their employees with short or long breaks:

• Short breaks — last 5 to 20 minutes and are included in the total sum of work hours during the week. Employees get paid for this time as it was spent working, and

• Long breaks — last at least 30 minutes and employers are not required to pay for this time.

Moreover, when providing meal breaks to employees, employers must abide by 2 rules:

• If an employee works during mealtime (e.g., eating at their desk while working or grabbing a quick bite while commuting from one on-site location to another, etc.), they need to be paid because their mealtime is still spent working.
• If an employee can have a meal break during which they do not perform work and can spend that time as they see fit, it counts as a meal break but does not have to be paid.

Although breaks are not mandatory by state or federal law, many employers choose to include breaks as part of a collective bargaining agreement.

Healthy Retail Employee Act

Since March 2011, the Maryland Department of Labor has been enforcing a law concerning break times in retail stores.

According to the Healthy Retail Employee Act, an employer is required to provide (un)paid breaks to employees if they own a retail establishment that:

• Primarily sells goods to customers on-premises (via a physical store, not an online one),
• Has 50 or more retail employees, and
• Has been open and operational in the past 20 or more calendar weeks.

The breaks are distributed in the following ways:

• If an employee works less than 4 consecutive hours, no break is required,
• If an employee works between 4 and 6 consecutive hours, a 15-minute break is required,
• If an employee works more than 6 consecutive hours, a 30-minute break is required, and
• If an employee works more than 8 consecutive hours, a 30-minute break is required, with an additional 15 minutes for every new 4 consecutive hours.

🎓 Official Maryland Healthy Retail Employee Act

Maryland breastfeeding laws

The State of Maryland does not regulate breaks for breastfeeding mothers in the workplace specifically.

That means the federal laws apply, so the FLSA protects mothers who are non-exempt (hourly) employees.

Within the federal law, here is what breastfeeding rules entail (for up to 1 year after the child's birth):

• Employees get a designated private nursing room, which is free from public and coworker intrusion and not used as a bathroom,
• The duration of the lactation break is per the employer's decision (and within reasonable boundaries), and
• Employers must post a notice in an accessible place to inform employees of their rights and obligations concerning breastfeeding.

The only exception to this regulation is if the employer has fewer than 50 employees.

Moreover, if the employer can prove that finding proper accommodations poses financial, structural, or other difficulties to the business, they are exempt from providing a separate room.

Maryland leave requirements

Luckily for many workers living and working in Maryland, the state follows the federal leave laws and has its own regulations titled The Maryland Healthy Working Families Act.

This means employees can choose which of the two suits them better.

Let's look at each type of leave — required and non-required — and observe what Maryland has to offer.

🎓 The state of Maryland uses many of its own separate leave laws, and you can view the complete list by visiting the Maryland Department of Labor website.

Child labor laws in Maryland

When it comes to employing minors, any young person between the ages of 14 and 17 needs to have a signed and approved work permit issued by the Maryland Department of Labor.

Moreover, all minors under 18 are entitled to a 30-minute break after 5 consecutive hours of work.

Here are some of the more specific child labor laws for the State of Maryland.

Labor laws for minors under the age of 14

The minimum working age in Maryland is 14, and minors under the age of 14 are not allowed to work in any form or capacity.

Labor laws for minors aged 14 and 15

Minors in this age group must have a valid working permit to be employed.

Their work hours are limited to the following conditions:

• When school is in session — a maximum of 3 hours per day and 18 hours per week, and
• When school is not in session — a maximum of 8 hours per day and 40 hours per week.

Moreover, minors can work only between 7:00 a.m. and 7:00 p.m. — except from June 1 until Labor Day, when they can work until 9:00 p.m.

Labor laws for minors aged 16 and 17

Minors in this age group must also have a valid working permit to be employed.

Regarding minors aged 16 and 17, the work restrictions are much less strict.

The main rule is that they can spend a maximum of 12 hours per day at school and work combined.

For their own health and safety, they must have at least 8 consecutive hours of rest per 24 hours, during which they will not have school or work.

Prohibited occupations for minors in Maryland

All minors in Maryland have the same prohibited occupations, with no distinction regarding age. These include:

• Working in or about plants or manufacturing related to explosives or items with explosive components,
• Working in logging, mining, or any occupation with power-driven machinery (metalwork, wood processing, etc.),
• Operating lifts, elevators, and other hoisting apparatuses,
• Cleaning, oiling, or any other form of machinery maintenance,
• Working around blast furnaces,
• Working at docks or piers,
• Working at railroads,
• Driving motor vehicles,
• Working in roofing or excavation occupations, 
• Erection and repair of electrical wires or components, and
• Working in distilleries (e.g., manufacturing, packaging, or bottling alcoholic beverages).

🎓 Full list of prohibited occupations for minors in Maryland

Maryland child labor law exemptions

Child labor laws allow for exemptions in cases where some occupations are not considered employment.

These activities are performed outside a school day and do not involve any hazardous work. Some examples include the following:

• Minors employed by family members or relatives, as long as the minor is not 15 or under and doing work in mining or manufacturing,
• Minors caddying on a golf course, 
• Minors manufacturing evergreen wreaths in or about a home.
• Minors working on newspaper delivery,
• Minors working on an instructional sailboat as an instructor,
• Minors working as performers or entertainers (TV, radio, online, etc) — as long as the agency employing them provides all the vital information on hours worked and wages, and
• Minors working as counselors or assistant counselors in certified Youth Camps.

NOTE: Employers are subject to both federal and state laws. Although Maryland child labor laws are less strict than the federal ones, employers covered by the FLSA should also follow federal regulations.

Hiring laws in Maryland

Hiring laws in Maryland follow the same federal regulations as in the rest of the US.

In addition, the state also follows the Job Applicant Fairness Act, which prohibits employers from asking applicants for their credit reports to decide whether to hire, discharge, or change their pay rate.

Termination laws in Maryland

Maryland is a state following employment-at-will.

This means that Maryland employees working under contract can be terminated (or resign on their own) for any reason at any moment.

The only caveat is that termination is considered illegal if it is based on discrimination or retaliation against an employee.

Final paycheck in Maryland

As stipulated by the Maryland Department of Labor, employers are required to pay all final wages to the State of Maryland employees by the next payday, regardless of the cause of termination.

Discrimination laws in Maryland

With regards to discrimination, the State of Maryland Commission on Civil Rights regulates that every applicant and employee in Maryland is granted protection in the workplace from discrimination based on:

• Race,
• Color,
• Religion,
• Nationality,
• Sex,
• Age,
• Marital status,
• Sexual orientation,
• Gender identity,
• Genetic information, and
• Disability.

This means that the employers cannot:

• Discriminate on these bases when recruiting, hiring, making contracts for applicants, discharging, etc.,
• Deny membership on these bases for apprenticeship programs,
• Ask discriminatory questions during job application, or circulate information that could affect potential employment, and
• Publish job advertisements with discriminatory information/conditions.

This anti-discrimination law applies only to employers with 15 or more employees.

Still, complaints against harassment or discrimination can be filed regardless of the number of employees.

Occupational safety in Maryland

Maryland follows the federal Occupational Safety and Health Act (OSHA) and also has its own law titled Maryland Occupational Safety and Health (MOSH).

It receives funding from federal and special sources and is one of the 28 federal-approved State Plans in the U.S.

Aside from specific programs, MOSH offers the following services specifically tailored to the needs of businesses in Maryland:

• Consulting and on-site inspections,
• Providing educational programs and outreach,
• Setting and enforcing standards, and
• Working with businesses to continually improve workplace safety and health.

You can find more information, including service numbers for MOSH offices in each county, and MOSH forms (online complaint form, compliant form, etc.) on the official MOSH page. 

The website is regularly updated with upcoming events and online webinars concerning workplace safety in various instances.

Miscellaneous Maryland labor laws

In this final section, we will go through some of the additional labor laws that are of public interest, including:

• Right-to-work laws,
• Whistleblower protection laws,
• Background check laws,
• Employer use of social media regulations,
• Employee monitoring laws,
• Drug and alcohol testing laws,
• Sexual harassment training laws,
• COBRA laws,
• Expense reimbursement laws, and
• Record-keeping laws.

Right-to-work laws

Maryland has no legislation regarding right-to-work laws.

However, one section of their Labor and Employment law states that no employer can force an employee to:

• Become or remain a member of a labor organization,
• Resign from a labor organization, or
• Resign from their job or role if they are a part of or wish to join a labor organization.

So, while there is no formal right-to-work law, a regulation protects employees from being manipulated through (or for) labor union membership.

Whistleblower protection laws

Regarding whistleblower protection, the State of Maryland uses its own Maryland Whistleblower Law, which differentiates between public and private employees.

For the public sector, an employer is not allowed to fire, threaten, or discriminate against an employee if they report:

• A violation of the law,
• A substantial and specific danger to public health and safety,
• Mismanagement of state funds,
• Gross mismanagement,
• Gross waste of money, or
• Abuse of authority.

While the public sector guidelines are relatively straightforward, it is important to note that the State of Maryland takes whistleblower laws seriously.

Therefore, different laws apply depending on the following:

• The industry an employee works in,
• The gravity of misconduct being reported, and
• The type of misconduct being reported.

In short, reporting health safety concerns as a nurse falls under different rules than reporting safety concerns as a project manager.

🎓 Maryland Whistleblower Laws

Background check laws

Maryland is among many US states that follow the Ban the Box legislation.

According to this law, an employer is not allowed to ask about or look into an applicant's criminal history until their first in-person interview.

The law applies to any business with 15 or more employees and for any type of employment (seasonal, contractual, temporary), not just full-time employment.

The only exception to this rule is in cases where the criminal record bears a rational relationship to the duties and responsibilities of the position.

This includes occupations in the following sectors:

• Schools,
• Security, and
• Financial and insurance institutions.

Employer use of social media regulations

Regarding employee privacy in the workplace, Maryland has the Username and Password Privacy Protection Law.

Based on this law, an employer cannot ask an employee to provide their username and password for their private social media accounts for any reason.

However, the employer is allowed to:

• Ask an employee for login credentials to any work-related, non-personal accounts that provide access to the employer's internal computer,
• Ask for an investigation of an employee's work-related computer based on receipts of information about unauthorized downloads, financial data, or similar misconduct that could jeopardize business operations, and
• Ask for an investigation of an employee's work-related computer to ensure compliance with financial and security laws.

The Employee monitoring law

The State of Maryland allows employers to conduct phone call surveillance in cases where it is essential for the job being performed (such as customer service calls).

Employers are generally prohibited from recording or tapping into employees' personal calls or in-person conversations.

The exception to this rule is if all conversation participants have given permission.

Drug and alcohol testing laws

The State of Maryland recognizes several regulations concerning alcohol and drug testing in the workplace:

1. While recreational use of marijuana is decriminalized, it is still illegal in Maryland. Therefore, an employer is allowed to discipline an employee who is also a medical marijuana patient should they test positive in the workplace,
2. Bodily samples such as blood, urine, hair, and saliva are allowed, but not breath — especially for breath alcohol testing,
3. Employers are allowed to test for any controlled dangerous substance as long as the samples are collected and processed by a licensed laboratory, and the reasons for the testing are justified, and
4. Employers must use either the licensed laboratories or those certified by the Substance Abuse and Mental Health Service Administration.

🎓 Maryland's drug and alcohol testing

Sexual harassment training laws

According to Maryland's anti-harassment training laws, all public employees should undergo 2 hours of sexual harassment prevention training within 6 months of employment.

After the first training, employees should take another 2-hour session every two years.

COBRA laws

Maryland follows the Federal Consolidated Omnibus Budget Reconciliation Act (COBRA) but also has its own regulation called the Maryland Continuation Coverage (MCC).

Since COBRA applies only to companies with 20 or more employees, small businesses are left without a regulation of their own.

MCC provides this aid to business owners with 19 or fewer employees.

We strongly advise looking into the official document comparing COBRA and MCC for extensive information on prolonged health insurance after termination. The table provided gives specific information on eligibility, availability, and types of coverage provided by both plans.

Although the main difference between the 2 acts is which type of employers they cover, there are other differences you should also look at. For example, different time limits, amounts of payment, and different health benefits. 

Expense reimbursement laws

Maryland's Department of Budget and Management states that public employees are entitled to reimbursement for “meal and incidental expenses.”

Each year, new rates are calculated and published on the official website.

Reimbursements include:

• Meal allowances,
• Porter fees and hotel tips, and
• Transportation tips.

Record-keeping laws

According to the Maryland Department of Labor, each employer should keep, in or about the place of employment, for 3 years after termination, the following records on each employee:

• Name,
• Address,
• Race,
• Gender,
• Occupation,
• Rate of pay and the amount of each pay period, and
• Daily and weekly work hours.

Frequently asked questions about labor laws in Maryland

To make this guide as comprehensive as possible, we have included an FAQ section that answers the most common questions about Maryland laws.

Is it illegal to work 8 hours without a break in Maryland?

No, it is not illegal. However, if the employee works in retail and is covered by the Healthy Retail Employee Act, they are entitled to certain work breaks. Moreover, if the employee is a minor, they are also guaranteed a break during work.

Can you be fired without cause in Maryland?

Yes, you can. Maryland follows the “at-will” doctrine, which allows both employers and employees to terminate the employment relationship at any time and without any specific reason. However, the termination cannot be a result of retaliation or discrimination.

What are the pay laws for termination in Maryland?

If an employee is terminated from their contract, the employer has to pay the remaining employee's wages by the next scheduled payday.

Is there a pay transparency law in Maryland?

Yes, there is a Maryland pay transparency law. The law is named Equal Pay for Equal Work – Wage Range Transparency and will become effective on October 1, 2024. Under this law, job postings must include wage ranges and benefits.

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Conclusion/Disclaimer

We hope this Maryland labor law guide has been helpful. Please ensure you have paid attention to our links, as most of them will lead you to the official government websites and other relevant information.

Please note that this guide was written in July 2024, so any changes in the labor laws that were included later than that may not be included in this Maryland labor laws guide.

We strongly advise you to consult with the appropriate institutions or certified representatives before acting on any legal matters.

Clockify is not responsible for any losses or risks incurred should this guide be used without further guidance from legal or tax advisors.