Montgomery County Increases Minimum Wage to $15 by 2022

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Montgomery County recently passed and County Executive Ike Leggett signed a bill that will increase the minimum wage beginning July 1, 2018, and provide annual stepped-up increases to $15 by 2022 for large employers, by 2023 for mid-sized, non-profit 501(c)(3), and certain service provider employers, and by 2024 for small employers.

Currently, the minimum wage is $11.50. The first increase takes place on July 1, 2018, with large employers seeing an increase to $12.25, and mid-size and small employers seeing an increase to $12.00.

A “large employer” is an employer that employs 51 or more employees.

A “mid-sized employer” is:

  • an employer that employs between eleven and 50 employees; or
  • an employer that employs eleven or more employees and:
    • has tax exempt status under Section 501(c)(3) of the Internal Revenue Code; or
    • provides “home health services” as defined by 42 C.F.R. § 440.70 or “home or community-based services” as defined by 42 C.F.R. § 440.180, and receives at least 75% of gross revenues through state and federal Medicaid programs.

A “small employer” is an employer that employs 10 or fewer employees.

In addition, annual increases above the $15 are tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The bill also provides for an opportunity wage equal to 85 percent of the county’s minimum wage for the first six months of employment for employees under age 20.

This chart provides the schedule of increases:

Effective Date Large Employers Mid-Size Employers Small Employers
July 1, 2018 $12.25 $12.00 $12.00
July 1, 2019 $13.00 $12.50 $12.50
July 1, 2020 $14.00 $13.25 $13.00
July 1, 2021 $15.00 $14.00 $13.50
July 1, 2022 $15.00 + CPI-W $14.50 $14.00
July 1, 2023 Increased annually by CPI-W $15.00 $14.50
July 1, 2024 Increased annually by CPI-W $15.00 + CPI-W + 1% $15.00
July 1, 2025 Increased annually by CPI-W Increased annually by CPI-W + up to 1%, until equal to large employers $15.00 + CPI-W + 1%
July 1, 2026 and after Increased annually by CPI-W Increased annually by CPI-W + up to 1%, until equal to large employers Increased annually by CPI-W + up to 1%, until equal to large employers