TOP TIP: New Year, New Minimum Wage Rates in the Mid-Atlantic
Although the federal minimum wage remains $7.25, Maryland’s minimum wage is subject to an annual increase, with the next increase coming on January 1, 2020 – from $10.10 to $11.00 per hour.
As we discussed in our April 10, 2019 E-lert on new Maryland laws, this increase comes as the result of legislation that gradually increases the state rate to $15.00 over the next several years. Different schedules of increases apply depending on the size of the employer. Our E-lert provides further details about the law.
Also, New Jersey is increasing its rate to $11.00 per hour (from $10.00). Agricultural, seasonal, and small (fewer than 6 employees) employers in New Jersey are subject to a reduced rate of $10.30 per hour (up from $8.85). New Jersey’s tipped wage rate is increased to $3.13 (from $2.63). The required poster is available here.
This is also a good time to remind employers that many other states and local jurisdictions have minimum wage rates above the federal rate, including the following throughout the Mid-Atlantic region:
- Montgomery County, Maryland: $13.00 per hour for employers with more than 50 employees and $12.50 per hour for employers with 50 or fewer employees. This is scheduled to increase on July 1, 2020 to $14.00 per hour for larger employers, to $13.25 for mid-sized and certain other employers, and $13.00 for small employers. Our November 30, 2017 E-Update provides more detail on this law. The required poster is available here.
- Prince George’s County, Maryland: $11.50 per hour. The required Wage-Hour Abstract poster is available here.
- Delaware: $9.25 per hour. The required poster is available here.
- District of Columbia: $14.00 per hour, with a tipped wage of $4.45 per hour. The rate will increase to $15.00 per hour on July 1, 2020. The required poster is available here.
- West Virginia: $8.75 per hour. The required poster is available here.
Employers should ensure that they are complying with the applicable minimum wage rates, and also updating the required posters as necessary.