TOP TIP: New Minimum Wage Rates for 2022 in the Mid-Atlantic and for Federal Contractors and Subcontractors
Although the federal minimum wage remains $7.25, with a tipped wage rate of $2.13, most states in the mid-Atlantic region have implemented higher minimum wage rates. (The tipped wage rate for tipped employees, together with any tip credit, must meet the minimum wage. Employers are responsible for 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, 2022, as noted below.
Maryland’s minimum wage is subject to an annual increase, with the next increase coming on January 1, 2022 – from $11.75 to $12.50 per hour for employers with 15+ employees, and $12.20 for those with 14 or fewer employees. The tipped wage rate remains at $3.63 per hour. Employers must also display the current minimum wage poster, which is available here.
Also, New Jersey is increasing its rate for most employers to $13.00 per hour (from $12.00). Seasonal, and small (fewer than 6 employees) employers in New Jersey are subject to a reduced rate of $11.90 per hour (up from $11.10), while agricultural employers have a new rate of $10.90 (up from $10.44). New Jersey’s tipped wage rate is increased to $5.13 (from $4.13). The required poster is available here.
In Delaware, the rate increases from $9.25 to $10.50 per hour. The tipped wage rate remains at $2.23, just slightly higher than the federal rate. The required poster is available here.
Virginia’s minimum wage rate is increasing from $9.50 to $11.00 per hour. The tipped wage remains at the federal rate. Unlike the other states discussed here, Virginia does not have a poster requirement, but an optional poster is available here.
In addition, the minimum wage rate for certain federal contractors or subcontractors depends on whether they have existing or new covered contracts. 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. There is a required poster, available here.
- For existing contracts, the required wage rate increases to $11.25 per hour (from $10.95) for workers performing work on or in connection with covered contracts, with a tipped rate of $7.90 per hour (from $7.65). The required poster (which has yet to be updated) will be available here.
- For new, renewed, or extended contracts that are entered into on or after January 30, 2022, the wage rate is $15 per hour.
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:
- Montgomery County, Maryland: $15.00 per hour for employers with more than 50 employees, $14.00 for mid-sized and certain other employers, and $13.50 for small employers. The next scheduled increase takes place on July 1, 2022, to $14.50 for mid-sized and certain other employers, and $14.00 for small employers, with additional increases beyond $15.00 for large employers tied to the Consumer Price Index. Our November 30, 2017 E-Update provides more detail on this law. The required poster is available here.
- District of Columbia: $15.20 per hour, with a tipped wage rate of $5.05 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.