ANNAPOLIS, Md. –– As we prepare for 2022, some people will have a pleasant surprise to start the new year with a larger paycheck.
Effective on Saturday, Jan. 1, 2022, the minimum wage in Maryland goes from $11.75 to $12.50 an hour for employers with 15 or more employees, according to the Maryland Department of Labor. The new minimum wage for employers with 14 employees or less will be $12.20 an hour.
Also, tipped employees must earn the State minimum wage per hour. Their wage per hour plus tips must equal at least the state minimum wage.
As for overtime, employees must work 1.5 times their usual hourly rate for all work over 40 hours per week. This applies to everyone except for workers at bowling establishments and institutions providing on-premise care (other than hospitals) to the sick, the aged, or individuals with disabilities who are expected to work 48 hours, and agricultural workers who work 60 hours.
Everyone exempt from overtime and minimum wage constraints includes:
- An immediate family member of the employer
- Certain agricultural employees
- Executives, administrative, and professional employees
- Volunteers for educational, charitable, religious, and non-profit organizations
- Employees under 16 working less than 20 hours per week
- Outside salespersons
- Commissioned employees
- Employees enrolled as a trainee as part of a public school special education program
- Non-administrative employees of organized camps
- Certain establishments selling food and drink for consumption on the premises grossing less than $400,000 annually
- Drive-in theaters
- Establishments engaged in the first canning, packing, or freezing of fruits, vegetables, poultry, or seafood
This change is one addition to the sequence of raises enacted by the Maryland General Assembly, with more to come in the future. By 2023, the minimum wage will be $13.25 per hour for employers with 15 or more employees, while it should be $12.80 per hour for employers with 14 employees or fewer. By 2024, the minimum wage should be $14.00 per hour for employers with 15 more employees, while it should be $13.40 per hour for employers with 14 employees or fewer.
For more information on minimum wage and overtime pay, check the Maryland Department of Labor’s official website.
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