Maryland Employment Law 2026

2.1 Wage and Hour Rights

Maryland wage and hour law establishes minimum standards for employee compensation, including minimum wage rates, overtime requirements, payment timing, and final paycheck rules.

Minimum Wage in Maryland (2026)

Current Maryland State Minimum Wage:

Effective January 1, 2026: $15.50 per hour
Effective July 1, 2026: $16.00 per hour

According to Maryland Department of Labor:

“Rate will increase to $15.50 on 1/1/26, and to $16 on 7/1/26.”

Source: Maryland Minimum Wage and Overtime Law
Published by: Maryland Department of Labor, Division of Labor and Industry, Employment Standards Service
Available at: https://www.labor.maryland.gov/labor/wages/wagehrfacts.shtml
Verified: January 14, 2026

Statutory Authority: Labor and Employment Article, Title 3, Subtitle 4, Annotated Code of Maryland
Official statutes: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-413

Historical Context: Maryland’s minimum wage increased to $15.00 per hour on January 1, 2024, under the Fair Wage Act of 2023.

Federal Minimum Wage: The federal minimum wage remains $7.25 per hour under the Fair Labor Standards Act, 29 U.S.C. § 206. Because Maryland’s minimum wage exceeds the federal rate, Maryland employers must pay the higher state rate.

Special Minimum Wage Rates

Youth Workers (Under Age 18):

Employees under 18 years of age must earn at least 85% of the State Minimum Wage Rate.

• Effective January 1, 2026: $13.18 per hour (85% of $15.50)
• Effective July 1, 2026: $13.60 per hour (85% of $16.00)

Source: Labor and Employment Article § 3-413
Note: Effective June 1, 2019

Tipped Employees:

Tipped employees (earning more than $30 per month in tips) must earn the State Minimum Wage Rate per hour through the combination of:

• Direct employer wages: minimum $3.63 per hour
• Tips received
• Total (wages + tips) must equal or exceed the State Minimum Wage Rate

Tip Credit Requirement: Restaurant employers who utilize a tip credit are required to provide employees with a written or electronic wage statement for each pay period showing the employee’s effective hourly rate of pay including employer-paid cash wages plus tips.

Source: Maryland Department of Labor guidance
Available at: https://www.labor.maryland.gov/labor/wages/wagehrfacts.shtml

County-Specific Minimum Wages

Certain Maryland counties have established higher minimum wage rates:

Montgomery County Minimum Wage (2025 rates, subject to annual July 1 adjustment):

• Large employers (51+ employees): $17.65 per hour (effective July 1, 2025)
• Mid-sized employers (11-50 employees): $16.00 per hour (effective July 1, 2025)
• Small employers (10 or fewer employees): $15.50 per hour (effective July 1, 2025)

Source: Montgomery County Code, Chapter 27, Section 27-68
Official information: https://www.montgomerycountymd.gov/humanrights/min-wage.html
Annual adjustment: Based on Consumer Price Index for Washington-Arlington area

Howard County Minimum Wage:

• $16.00 per hour (effective January 1, 2026)
• Annual adjustments beginning January 2027 based on Consumer Price Index for All Urban Consumers (CPI-U)

Source: Howard County Council Bill No. 82-2021
Official information: https://www.howardcountymd.gov/finance/minimum-wage
Enforcement: Maryland Department of Labor

Employer Note: When multiple minimum wage laws apply (federal, state, county), employers must pay the highest applicable rate to covered employees.

Overtime Requirements

Maryland Overtime Standard:

Most employees in Maryland must be paid 1.5 times their regular hourly rate for all hours worked over 40 hours per week.

Statutory Authority: Labor and Employment Article § 3-415, Annotated Code of Maryland

According to Maryland Department of Labor:

“Most employees must be paid 1.5 times their usual hourly rate for all work over 40 hrs. per week.”

Source: Maryland Minimum Wage and Overtime Law
Available at: https://www.labor.maryland.gov/labor/wages/wagehrfacts.shtml

Federal Overtime Standard:

Under the Fair Labor Standards Act, 29 U.S.C. § 207(a)(1):

“No employer shall employ any of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, for a workweek longer than forty hours unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed.”

Official text: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section207
DOL guidance: https://www.dol.gov/agencies/whd/overtime

Special Overtime Rules:

Agricultural Workers: Agricultural workers must receive overtime pay for all work over 60 hours per week (rather than 40 hours).

Note: Maryland does not require daily overtime (such as overtime after 8 hours in a single day). Overtime is calculated based on a 40-hour workweek only.

Exemptions from Overtime (Selected Categories):

Maryland Labor and Employment Article § 3-403 lists numerous exemptions from minimum wage and overtime requirements. Selected exempt categories include:

1. Administrative, executive, or professional employees (as defined by Commissioner regulations)
2. Outside salespersons
3. Employees compensated on a commission basis
4. Immediate family members of the employer
5. Certain seasonal agricultural workers
6. Employees of certain recreational establishments
7. Certain employees of non-profit religious, charitable, or educational organizations

Source: Labor and Employment Article § 3-403
Official text: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-403

Important: Exemption classifications are complex and strictly interpreted. Job titles alone do not determine exempt status. Federal Department of Labor guidance and legal counsel may be consulted regarding employee classification.

2.2 Paid Sick and Safe Leave (Maryland Healthy Working Families Act)

Maryland requires certain employers to provide earned sick and safe leave to eligible employees under the Maryland Healthy Working Families Act.

Statutory Authority

Source: Labor and Employment Article §§ 3-1301 through 3-1311, Annotated Code of Maryland
Official text: Available at https://mgaleg.maryland.gov/
Effective date: February 11, 2018

According to Maryland Department of Labor:

“The Maryland Healthy Working Families Act requires employers with 15 or more employees to provide paid sick and safe leave for certain employees. It also requires that employers who employ 14 or fewer employees provide unpaid sick and safe leave for certain employees.”

Source: Sick and Safe Leave information
Published by: Maryland Department of Labor, Division of Labor and Industry, Employment Standards Service
Available at: https://www.labor.maryland.gov/paidleave/
Verified: January 14, 2026

Employer Coverage

Paid Leave Requirement (15+ employees): Employers who employ 15 or more employees are required to provide paid earned sick and safe leave.

Unpaid Leave Requirement (14 or fewer employees): Employers with 14 or fewer employees are required to provide unpaid earned sick and safe leave.

Determining Employee Count:

According to Maryland Department of Labor guidance:

“In determining whether an employer is required to provide paid or unpaid earned sick and safe leave under the law, the number of employees is determined by calculating the average monthly number of employees during the immediately preceding year without regard to whether the employee is full-time, part-time, temporary, or seasonal.”

Calculation Method: Take the total number of employees working in each month of the preceding year, add the numbers together, and divide by 12. All employees count toward this threshold, including full-time, part-time, temporary, and seasonal employees, even if they would not otherwise be entitled to benefits.

Source: Maryland Healthy Working Families Act Frequently Asked Questions
Available at: https://labor.maryland.gov/paidleave/paidleavefaqs.shtml

Employee Eligibility

Covered Employees: All employees whose primary work location is in Maryland are entitled to accrue leave under the Act, regardless of whether the employer is located in Maryland or another state.

Exempt Employees: Certain employees are exempt from the requirements of the law, including:

• Employees who regularly work less than 12 hours per week for the employer
• Employees under age 18
• Certain employees of the federal government

Source: Labor and Employment Article § 3-1304, Annotated Code of Maryland

Accrual Rate and Caps

Accrual Rate:

According to Maryland Department of Labor:

“An employee accrues earned sick and safe leave at a rate of at least one hour for every 30 hours the employee works; however, an employee is not entitled to earn more than 40 hours of earned sick and safe leave in a year or accrue more than 64 hours of earned sick and safe leave at any time.”

Source: Maryland Earned Sick and Safe Leave Employee Notice
Available at: https://labor.maryland.gov/paidleave/paidleaveposter.shtml

Key Limits:

• Annual accrual cap: Maximum 40 hours earned per year
• Total accrual cap: Maximum 64 hours accumulated at any time
• Annual usage cap: Employer may limit usage to 64 hours per year

Accrual Begin Date: Earned sick and safe leave begins to accrue on February 11, 2018, or the date on which an employee begins employment with the employer, whichever is later.

Accrual Exceptions

An employee is not entitled to earn sick and safe leave during:

• A two-week pay period in which the employee worked fewer than 24 hours total
• A one-week pay period if the employee worked fewer than a combined total of 24 hours in the current and preceding pay period
• A pay period in which the employee is paid twice per month and the employee worked fewer than 26 hours in the pay period

Note: An employee who is exempt from the overtime provisions of the Fair Labor Standards Act is assumed to work 40 hours per week for accrual purposes.

Source: Maryland Sample Earned Sick and Safe Leave Policies
Available at: https://labor.maryland.gov/paidleave/paidleavemodel.shtml

Front-Loading Option

Employers may choose to award 40 hours of paid or unpaid earned sick and safe leave at the beginning of the year instead of requiring accrual throughout the year.

According to Maryland Department of Labor sample policy:

“To comply with the law, employees will be awarded forty (40) hours of paid/unpaid sick leave at the beginning of each year.”

Front-Loading Rules:

• Employer designates when the year starts and ends
• Employees not required to wait 106 days to use leave
• Employees not permitted to carry over unused leave at year end if front-loaded
• Employees will not be paid for unused sick and safe leave upon termination

Source: Maryland Sample Earned Sick and Safe Leave Policies
Available at: https://labor.maryland.gov/paidleave/paidleavemodel.shtml

Carryover Rules

If NOT Front-Loading: Employees are permitted to carry over earned sick and safe leave up to a maximum of 40 hours and up to a maximum total accrual amount of 64 hours.

If Front-Loading: Employer is not required to allow carryover of unused leave to the following year.

Usage Restrictions

Waiting Period: Employees are not permitted to use leave during the first 106 calendar days of their employment.

Permitted Uses:

Employees may use earned sick and safe leave for:

1. Care for or treat the employee’s mental or physical illness, injury, or condition
2. Obtain preventive medical care for the employee or the employee’s family member
3. Care for a family member with a mental or physical illness, injury, or condition
4. Maternity or paternity leave
5. Absence due to domestic violence, sexual assault, or stalking committed against the employee or employee’s family member

“Family Member” Definition: Includes employee’s child, spouse, parent, grandparent, grandchild, or sibling.

Source: Labor and Employment Article § 3-1301 and § 3-1307, Annotated Code of Maryland

Notice and Documentation Requirements

Notice to Employer:

• If need for leave is foreseeable (e.g., scheduled doctor’s appointment), employee must provide reasonable advance notice
• If need for leave is unforeseeable, employee must provide notice as soon as practicable

Documentation:

• For leave of more than two consecutive scheduled work days, employer may require reasonable documentation that leave was used for permitted purpose
• Documentation may not include disclosure of medical details beyond verification that leave was needed for permitted purpose

Employer Obligations

Required Posting: Employers must display a poster informing employees of their rights under the Act.

Poster available at: https://labor.maryland.gov/paidleave/paidleaveposter.shtml

Written Policies: Maryland Department of Labor has developed model policies that employers may use to comply with the Act.

Pay Statement Requirements: Employers must provide each employee a statement of used and available paid and unpaid leave with each pay period.

Source: Labor and Employment Article § 3-1309, Annotated Code of Maryland

Retaliation Prohibition

Employers may not retaliate against employees for:

• Requesting or using earned sick and safe leave
• Filing a complaint regarding violation of the Act
• Informing any person about an employer’s alleged violation of the Act
• Participating in an investigation, hearing, or proceeding related to the Act

Source: Labor and Employment Article § 3-1310, Annotated Code of Maryland

Relationship to Other Leave Policies

Existing PTO Policies:

According to Maryland Department of Labor guidance:

“If an employer has a paid time off policy that provides for paid time off in an amount equal to or greater than the leave that an employee would otherwise be entitled to under the law, the employer does not need to provide additional leave.”

Employers with existing paid time off (PTO) policies that meet or exceed the Act’s requirements do not need to provide separate sick and safe leave, provided:

• Employees have at least 40 hours available for immediate use at the beginning of the year
• Employees are permitted to use PTO for any of the reasons and under the same conditions set forth in the Act
• The policy clearly communicates these provisions to employees

Source: Maryland Healthy Working Families Act FAQs
Available at: https://labor.maryland.gov/paidleave/paidleavefaqs.shtml

Montgomery County Additional Requirements

Montgomery County has its own earned sick and safe leave law that provides more generous benefits in some respects:

• Accrual up to 56 hours per calendar year (vs. 40 hours under state law)
• Small employers (fewer than 5 employees): 32 hours paid + 24 hours unpaid
• Different coverage thresholds

Note: State law does not preempt local laws except where state law provides more generous benefits.

Source: Montgomery County Office of Human Rights
Available at: https://www.montgomerycountymd.gov/humanrights/employers-employees.html

2.3 Meal and Rest Break Requirements

General Rule: No State Requirement for Adult Employees

Maryland does not require employers to provide meal or rest breaks to most adult employees.

According to Maryland Department of Labor:

“Unless the worker is under 18 years old or is an employee who works in certain retail establishments, there is no law requiring an employer to provide breaks, including lunch breaks.”

Source: Breaks, Benefits and Days Off
Published by: Maryland Department of Labor
Available at: https://labor.maryland.gov/labor/wagepay/wpbreaks.shtml
Verified: January 14, 2026

Federal Law: Federal law also does not require meal or rest breaks for adult employees.

Source: U.S. Department of Labor, Wage and Hour Division
Available at: https://www.dol.gov/general/topic/workhours/breaks

Exception: Minor Employees (Under Age 18)

Minors under 18 years of age must receive a 30-minute break for every 5 hours of work.

Source: U.S. Department of Labor compilation of state laws
Note: Maryland included in list of states with minor-specific meal break requirements
Available at: https://www.dol.gov/agencies/whd/state/meal-breaks

Exception: Certain Retail Employees (Healthy Retail Employee Act)

The Healthy Retail Employee Act requires certain retail employers to provide shift breaks to eligible employees.

Covered Employers: Retail establishments that:

• Employ 50 or more retail employees in Maryland, AND
• Have employees who work at least 4 consecutive hours at a single location

Covered Employees: Retail employees who work at least 4 consecutive hours at a single retail establishment location with more than 5 employees on duty.

Break Requirements: Employers must provide breaks to covered employees, though the specific duration and timing depend on shift length and employer practices.

Exempt Employees: The following are exempt from the Healthy Retail Employee Act:

• Employees covered by collective bargaining agreements providing equal or greater breaks
• Employees exempt from FLSA overtime requirements (executive, administrative, professional)
• Commissioned sales employees meeting specific criteria
• State, county, or municipal government employees
• Employees working in corporate offices or office locations
• Employees working at least 4 consecutive hours at a location with 5 or fewer employees on duty

Source: Healthy Retail Employee Act
Published by: Maryland Department of Labor
FAQs available at: https://labor.maryland.gov/labor/wages/essretailfaqs.shtml

Break Payment Requirements

According to Maryland Department of Labor guidance:

“The Shift Break law requires that certain employers provide breaks to certain employees. This Maryland law does not address whether an employee is paid during their break time.”

Federal Standards Apply:

Under the federal Fair Labor Standards Act:

• Short breaks of less than 20 minutes (coffee breaks, bathroom breaks) are considered work time and must be compensated
• Meal periods of 30 minutes or longer need not be paid if the employee is completely relieved from duty

Source: Maryland Department of Labor, Healthy Retail Employee Act FAQs
Available at: https://labor.maryland.gov/labor/wages/essretailfaqs.shtml
Federal guidance: https://www.dol.gov/general/topic/workhours/breaks

Employer Discretion

According to Maryland Department of Labor:

“An employer who chooses to provide a break, however, does not have to pay for that break unless the employee is required to remain on duty or is required to perform work during the break.”

Employers who voluntarily provide breaks must compensate employees if:

• Employee is not completely relieved from duty
• Employee is permitted to consume a meal while working
• Employee has a “reasonable understanding” that they must work or be available to work during the break

Source: Pay for Lunch and Other Breaks
Available at: https://labor.maryland.gov/labor/wagepay/wplunchbreaks.shtml

2.4 Final Paycheck Requirements

Timing of Final Paycheck

Maryland Requirement:

According to Maryland Department of Labor:

“Each employer shall pay an employee, or the authorized representative of an employee, all wages due for work that the employee performed before the termination of employment, on or before the day on which the employee would have been paid the wages if the employment had not terminated.”

Source: Termination Pay guidance
Published by: Maryland Department of Labor
Available at: https://www.labor.maryland.gov/labor/wagepay/wppayonterm.shtml
Statutory authority: Labor and Employment Article § 3-505, Annotated Code of Maryland

Practical Application: The final paycheck is due on the next regularly scheduled payday following the termination date.

Example:

• Employee is paid biweekly on Fridays
• Employee terminates employment on Tuesday, January 14
• Next scheduled payday is Friday, January 24
• Final paycheck must be paid on or before Friday, January 24

Unused Vacation Pay at Termination

Rule Depends on Employer Policy:

According to Maryland Department of Labor:

“The answer to this question depends on the employer’s written policy, and whether this policy was communicated to the employee at the time of hiring.”

Employer May Forfeit Vacation: If an employer informs employees in writing at the time of hiring that unused vacation leave will be lost or forfeited upon termination, then an employee will not be able to claim it.

Employer Must Pay Vacation: Where the employer does not have a written policy that limits the compensation for accrued leave to a terminated employee, that employee is entitled to the cash value of whatever unused earned vacation leave was left, provided it was otherwise usable.

Commission Compensation:

According to Maryland Department of Labor:

“Unconditional agreements to forgo commissions upon termination of employment are unenforceable to the extent all required services necessary to claim the commission were completed by the employee prior to termination.”

Source: The Maryland Guide to Wage Payment and Employment Standards
Available at: https://labor.maryland.gov/labor/wagepay/mdguidewagepay.pdf

Unused Sick Leave at Termination

Maryland Department of Labor guidance states:

“Because sick leave is generally meant to be used in the case of sickness or for medical attention, its use is limited to those situations. Sick leave is therefore a contingency against illness, and cannot be claimed at termination in the same manner as unused vacation leave, unless expressly allowed in a contract or an employer’s policy.”

General Rule: Unused sick leave is NOT payable at termination unless:

• Employer has a written policy specifically providing for payment
• Employment contract expressly requires payment

Note: This includes unused earned sick and safe leave under the Maryland Healthy Working Families Act.

Source: Termination Pay guidance
Available at: https://www.labor.maryland.gov/labor/wagepay/wppayonterm.shtml

Notice Period Payment

No Requirement to Honor Notice Period:

According to Maryland Department of Labor:

“Unless expressly provided in an employment contract, agreement or policy, an employer is not required to allow an employee to work the full two week termination notice period (or whatever other termination notice period given by the employee), nor pay the employee for the time not actually allowed to work.”

Maryland employers operating under at-will employment may:

• Accept an employee’s resignation notice and immediately end employment
• Pay only for time actually worked, not the notice period offered
• Terminate employment before the employee’s proposed resignation date

Exception: If an employment contract, collective bargaining agreement, or employer policy expressly requires payment during a notice period, the employer must honor that requirement.

Source: Termination Pay guidance
Available at: https://www.labor.maryland.gov/labor/wagepay/wppayonterm.shtml

No Severance Pay Requirement

According to Maryland Department of Labor:

“Maryland law does not guarantee severance pay when employment terminates, unless promised in advance in an employment contract, agreement or policy.”

Source: Severance Pay guidance
Available at: https://labor.maryland.gov/labor/wagepay/wpsevpay.shtml

Employee Remedies for Unpaid Wages

Employees who believe final wages have been withheld may:

1. File a wage claim with the Maryland Department of Labor
2. File a lawsuit in Maryland court (must choose only one option)

Penalties for Wage Violations:

If an employer fails to pay wages when due and the failure is not the result of a bona fide dispute, Maryland courts may award damages of up to three times the amount of unpaid wages.

Source: Labor and Employment Article § 3-507.2, Annotated Code of Maryland