New Minimum Wage Rates for 2024 in the Mid-Atlantic (Including $15.00 in Maryland) and for Federal Contractors/Subcontractors
Although the federal minimum wage remains $7.25 per hour, with a tipped wage rate of $2.13, most Mid-Atlantic states have implemented higher minimum wage rates. (The tipped wage rate for tipped employees, together with any tip credit, must meet the minimum wage, with employers making up any shortfall.) The minimum wage rate in several states, as well as that for certain federal contractors and subcontractors, increases on January 1, 2024, as noted below.
- Maryland’s minimum wage is increasing to $15.00 for all employers, regardless of size, effective January 1, 2024, as discussed in our April 12, 2023 E-lert. This constitutes a significant jump from the current rate for larger employers at $13.25 and for smaller employers at $12.80. The tipped wage rate remains at $3.63 per hour. Employers must also display the current minimum wage poster, which is available here.
- Howard County, Maryland’s scheduled January 1, 2024 minimum wage rate increase for employers with under 15 employees falls below the new state rate, and the state rate will apply to those employers. Larger employers will remain at the state $15.00 rate until January 1, 2025, when it is scheduled to reach $16.00, while smaller employers will continue to apply the state rate. Like Maryland, the county tipped rate is $3.63 per hour. The required poster is available here.
- Montgomery County, Maryland’s wage rate had previously increased to $16.70 per hour for employers with more than 50 employees, $15.00 for those with 11-50 employees, and $14.50 for the remaining smallest employers – but this last rate will also go up to $15.00 on January 1, under the new state law. The tipped employee rate is $4.00 per hour. Our November 2017 E-Update provides more detail on this law. The required poster is available here.
- Also, New Jersey is increasing its rate for most employers to $15.00 per hour. Seasonal, and small (fewer than 6 employees) employers in New Jersey are subject to a reduced rate of $13.50 per hour, while agricultural employers have a new rate of $12.50. New Jersey’s tipped wage rate remains at $5.13. The required poster is available here.
- In Delaware, the rate increases to $13.25 per hour. The tipped wage rate remains at $2.23, just slightly higher than the federal rate. The required poster is available here.
In addition, the minimum wage rate for certain federal contractors or subcontractors depends on whether their contracts were entered into prior to January 30, 2022. The covered (sub)contracts are one of the following: construction contracts covered by the Davis-Bacon Act; service contracts covered by the Service Contract Act; concession contracts (e.g., contracts to operate souvenir shops in national parks or restaurants in federal buildings); and contracts in connection with federal property or land under which services are offered to federal employees, their dependents, or the general public (although this last category is not currently being enforced with regard to contracts entered into on or after January 30, 2022). A poster is required, the version of which depends on when the contract was made, and is available here.
- For contracts entered into prior to January 30, 2022, the required wage rate increases to $12.90 per hour for workers performing work on or in connection with covered contracts, with a tipped rate of $9.05 per hour.
- For new, renewed, or extended contracts that are entered into on or after January 30, 2022, the wage rate is $17.20 per hour for all employees, whether tipped or not. The previously-existing lower tipped rate is eliminated as of January 1, 2024.
This is also a good time to remind employers of the applicable wage rates in other states and local jurisdictions throughout the Mid-Atlantic region, some of which have minimum wage rates above the federal rate:
- Virginia’s minimum wage remains at $12.00 per hour. The tipped wage remains at the federal rate. Unlike the other states discussed here, Virginia does not have a poster requirement.
- District of Columbia’s minimum wage rate was previously increased to $17.00 per hour, with a tipped wage rate of $8.00 per hour. The required poster is available here.
- West Virginia: $8.75 per hour, with a tipped wage rate of $2.62 per hour. The required poster is available here.
- Pennsylvania: Applies the federal rate.
Employers should ensure that they are complying with the applicable minimum wage rates, and also updating any required posters as necessary.