At a glance
- Minimum wage: $15.00 an hour.
- Tipped cash wage: $3.63.
- Overtime: after 40 hours in a workweek.
- Final paycheck if fired: by the next regular payday.
- Paid sick leave: Yes. Paid family leave program: From 2028.
What Maryland employers need to know
Maryland reached a $15.00 minimum wage in 2025 and requires pay ranges in job postings from employers of every size. Its paid family leave program, FAMLI, has been delayed twice, so employers have more time before contributions begin. Montgomery County and Howard County set higher local minimum wages, which matters for employers in the Washington, DC suburbs.
Maryland minimum wage
| Minimum wage | $15.00 |
|---|---|
| Tipped cash wage | $3.63 |
| Next change | None scheduled |
| Local rates | Montgomery County and Howard County set local minimum wages above the state rate. |
Pay the highest rate that applies where the employee works: federal, state, or local. For comparison, neighboring states pay District of Columbia ($18.40), Virginia ($12.77), West Virginia ($8.75), Pennsylvania ($7.25), Delaware ($15.00). See every state side by side in our minimum wage by state table, and convert between hourly and annual pay with the salary to hourly calculator.
Maryland overtime rules
The federal FLSA rule applies: overtime at 1.5 times the regular rate after 40 hours in a workweek. There is no daily overtime rule.
Exempt salary test: the federal minimum of $684 a week ($35,568 a year) applies. Duties tests apply too, so job titles alone don't make someone exempt.
Work out overtime owed with our overtime calculator, compare states in overtime laws by state, and check classification with our guide to exempt vs non-exempt employees.
Maryland meal and rest break laws
Meal breaks: Only for retail establishments with 50 or more retail employees: 15 minutes for shifts of 4 to 6 hours, 30 minutes for shifts over 6 hours, and an extra 15 minutes for every additional 4 hours.
Rest breaks: No state rest break law for adults. Under federal law, short breaks of 5 to 20 minutes that you choose to give must be paid.
Many states have stricter break rules for minors. Compare adult rules nationwide in break laws by state, and total up shifts with the time card calculator.
Maryland final paycheck law
| If you fire or lay off the employee | By the next regular payday. |
|---|---|
| If the employee quits | By the next regular payday. |
| Unused vacation or PTO | Required unless your written policy, given at hire, says unused leave is forfeited. |
Build the deadline into your offboarding checklist. Our offboarding guide covers the full process, the PTO payout calculator works out the amount, and the final paycheck laws by state table compares every state.
Maryland paid sick leave and family leave
Paid sick leave: Healthy Working Families Act: 1 hour for every 30 hours worked, up to 40 hours of use a year. Employers with 15 or more employees must pay for it; smaller employers may provide it unpaid.
Paid family and medical leave: Maryland FAMLI has been delayed: contributions start in 2027 and benefits in 2028, under the current schedule.
Federal FMLA: employers with 50 or more employees within 75 miles must also give eligible employees up to 12 weeks of unpaid, job-protected leave. Read our FMLA guide, and compare states in paid leave laws by state.
Hiring, pay transparency, and payroll setup
Pay transparency: Required for employers of every size since October 2024: pay range and a general description of benefits in every posting.
New hire reporting: Report each new hire within 20 days of the hire date, the federal deadline.
State income tax withholding: Yes. Register with the state tax agency before the first payroll.
Our pay transparency laws guide explains posting rules in more depth, and our job description templates include pay data for 50 common roles.
What trips up Maryland employers
- Montgomery County and Howard County set higher local minimum wages.
- PTO is paid out at separation unless your written policy says otherwise.
- Job postings need a pay range and a description of benefits, at any company size.
Sources and the agency to contact
- Maryland Department of Labor (state labor agency)
- US Department of Labor: state minimum wage laws
- US Department of Labor: minimum wages for tipped employees by state
- US Department of Labor: state meal period requirements
General information for US employers, not legal advice. Laws change and have exceptions by industry, employer size, and city. Confirm current rules with the state agency or employment counsel before you rely on them.
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<a href="https://www.hrtally.com/state-labor-laws/maryland/">Maryland labor laws for employers (2026)</a> (source: HRTally)
Suggested citation: HRTally Research Team. "Maryland labor laws for employers (2026)." HRTally, updated October 20, 2026. https://www.hrtally.com/state-labor-laws/maryland/
Frequently asked questions
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Written by the HRTally Research Team
Our guides are written and reviewed by people with hands-on US HR, payroll, and HR technology experience. Legal and tax facts are checked against primary sources, such as the Department of Labor, IRS, EEOC, and USCIS, and linked at the end of each guide. Vendors never review or pay for our editorial content.