Maryland Bill Proposes $18 Minimum Wage With Automatic Increases

HB 1479: $18 Minimum Wage + Automatic Annual Increases. TUESDAY, March 3rd, – Testimony SIGN-UP from 8:00 a.m. – 6:00 pm.

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MARYLAND – A bill moving in the General Assembly would raise Maryland’s minimum wage to &18 per hour by 2028 and then require automatic annual increases every year after that, tied to inflation and written permanently into law. For many employers, this proposal represents both a significant near-term payroll increase and mandatory ongoing cost escalation with zero flexibility

Learn more about HB 1479 here

Legislation moving in the Maryland General Assembly — HB 1479 — would raise the state’s minimum wage to $18 per hour by 2028 and then require automatic annual increases every year after that, tied to inflation.

For Maryland employers, this represents both a significant near-term cost increase and a structural shift in how wage policy is set.

What HB 1479 Would Do

• $18 minimum wage on Jan. 1, 2028 (most employers)
• Employers with 49 or fewer employees get a one-year delay (reach $18 in 2029) — but still face the same automatic increases after
• Starting in 2029, minimum wage increases automatically each year (inflation-based, capped at 5%)

While the bill expands the definition of “small employer,” the only difference is a one-year delay. All covered employers ultimately face the same $18 wage floor and automatic increases thereafter.

The Immediate Impact: $18 Per Hour — Statewide

An $18 minimum wage represents a substantial increase from the state’s current trajectory.

For many employers — particularly in industries with narrow margins or large hourly workforces — that increase is significant on its own. It also rarely stops at the wage floor. When entry-level wages rise, employers often must adjust wages above minimum wage to maintain pay differentials and supervisory structures.

The result can be compression across payroll systems.

For businesses already managing rising insurance, utility, and compliance costs, the cumulative impact matters.

The Long-Term Impact: Permanent Automatic Increases

Beginning in 2029, the minimum wage would increase automatically each year based on inflation data. These increases:

• Require no legislative vote
• Include no hardship provision
• Cannot be paused

Wage policy would shift from legislative deliberation to a formula embedded in statute. Over time, that reduces flexibility for employers making long-term hiring, investment, and expansion decisions.

What Maryland Employers Should Do

If this proposal would affect your hiring plans, payroll structure, or ability to grow, lawmakers need to hear directly from you.

HB 1479 – Testimony Due Tuesday, March 3

• Take Action on Tuesday, March 3, 8:00 a.m.-6:00 p.m.
• Sign up to testify and/or submit written testimony
• Sample letters available in our Action Toolkit
• Testimony submittal guidance available at mdchamber.org

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