Overtime Laws in Maryland 2026: Pay Rates, Exemptions & Tax Deduction (2026)

Does Maryland have its own overtime law?

Yes. Maryland has its own overtime law under the Maryland Wage and Hour Law (MWHL), Labor and Employment Article, Title 3, Subtitle 4, Annotated Code of Maryland. For most employees, Maryland requires overtime at 1.5 times the regular rate for all hours worked over 40 in a workweek, mirroring the federal FLSA. However, Maryland has modified rules for certain agricultural workers (60-hour threshold) and certain care facility and bowling alley employees (48-hour threshold).

What is the overtime rate in Maryland in 2026?

The overtime rate in Maryland is 1.5 times the employee’s regular rate of pay for all hours over 40 in a workweek. Based on Maryland’s statewide minimum wage of $15.00/hour, the minimum overtime rate is $22.50/hour. Employees in Montgomery, Howard, or Prince George’s Counties where local minimum wages are higher will have correspondingly higher minimum overtime rates.

Does Maryland require daily overtime?

No. Maryland does not require daily overtime. Overtime in Maryland is calculated on a weekly basis — working more than 8 hours in a single day does not trigger overtime unless total hours in the workweek exceed the applicable threshold (40, 48, or 60 hours depending on the worker’s occupation).

Is mandatory overtime legal in Maryland?

Under federal law and Maryland state law, employers can generally require adult employees to work overtime without limit, provided all overtime hours are properly compensated. Maryland does not have a general mandatory overtime restriction for private-sector workers. However, Maryland has enacted healthcare worker protections limiting mandatory overtime for nurses and certain healthcare employees. At-will employees who refuse mandatory overtime may face disciplinary action unless protected by contract or collective bargaining.

Am I exempt from overtime in Maryland?

Exemption depends on both salary level and job duties. Under the FLSA (which governs for most Maryland employees), workers must earn at least $684/week ($35,568/year) on a salary basis AND perform executive, administrative, or professional duties to qualify for the EAP exemption. Maryland also has specific categories exempt from state overtime only (taxicab drivers, certain dealership employees, certain theatrical employers). Job title alone does not determine exempt status.

Can salaried employees get overtime in Maryland?

Yes. Being paid a salary does not automatically make an employee exempt from overtime. Salaried employees who earn less than $684/week, or who do not meet the applicable duties tests, are nonexempt and entitled to overtime pay. Maryland law specifically warns against employers incorrectly classifying workers as salaried to avoid overtime — the obligation to pay overtime based on average hourly equivalent still applies for non-qualifying salaried employees.

Is overtime taxed differently in Maryland?

Overtime pay is subject to both federal income tax and Maryland state income tax. Under the One Big Beautiful Bill Act (2025–2028), FLSA-covered nonexempt employees may deduct up to $12,500 ($25,000 joint) of the premium portion of overtime from federal taxable income using Schedule 1-A of Form 1040. However, this federal deduction does not reduce Maryland state income tax. Per the Maryland Comptroller’s January 2026 Tax Alert, the overtime deduction under IRC § 225 does not flow through to Maryland returns.

How do I calculate the federal overtime tax deduction?

For time-and-a-half pay, the deductible amount equals one-third of your total overtime pay. For example, if you earned $9,000 in total overtime pay at time-and-a-half, your qualified overtime compensation deduction is $3,000. The IRS confirms this calculation method in IRS Notice 2025-69. Claim the deduction on Schedule 1-A of Form 1040 when filing your federal return.

How do I file an overtime complaint in Maryland?

File a Wage Claim Form with the Maryland Department of Labor, Employment Standards Service (ESS) at 410-767-2357 or online at https://labor.maryland.gov/labor/wages/essclaimform.shtml. You can also contact the U.S. DOL Wage and Hour Division at 1-866-487-9243. ESS must receive your claim form within 2 years of the date wages became due in order to investigate. The statute of limitations for filing a lawsuit directly is 3 years under Maryland law.

Can my employer fire me for refusing overtime in Maryland?

In most cases, yes. Maryland is an at-will employment state, and employers may discipline or terminate employees who refuse to work overtime, unless a law, employment contract, or collective bargaining agreement provides otherwise. However, employers cannot retaliate against employees who file overtime or wage complaints.

Can my employer give comp time instead of overtime pay?

Under the FLSA, private-sector employers cannot offer comp time in lieu of overtime pay. Private employees who work overtime must receive cash wages at 1.5 times their regular rate. Public-sector employers (state and local government) in Maryland may offer compensatory time at 1.5 hours per overtime hour, up to 240 hours (or 480 hours for public safety and emergency employees), provided a prior agreement exists.

Does working on weekends or holidays count as overtime in Maryland?

No. Under both the FLSA and Maryland’s Wage and Hour Law, working on weekends or holidays does not automatically constitute overtime. Overtime depends on the total hours worked in the workweek (or the applicable workweek period), regardless of which specific days those hours occur. Employers are not required to pay a premium rate for holiday work unless total weekly hours trigger the overtime threshold.

What happens if my employer doesn’t pay overtime in Maryland?

Employees may recover unpaid overtime wages, plus damages of up to three times the unpaid amount and attorney’s fees under the Maryland Wage Payment and Collection Law. Under the FLSA (29 U.S.C. § 216(b)), employees may also recover liquidated damages equal to unpaid wages plus attorney’s fees. The Maryland statute of limitations for a wage lawsuit is 3 years; the FLSA standard is 2 years (3 years for willful violations).

What is the statute of limitations for overtime claims in Maryland?

Maryland’s Wage and Hour Law and Wage Payment and Collection Law provide a 3-year statute of limitations for filing a lawsuit for unpaid wages. The FLSA standard is 2 years from the violation date (3 years if the violation is willful). The longer applicable deadline governs. Note that ESS requires claims be submitted within 2 years for investigation purposes, even though the court deadline is longer.

Are there different overtime rules in Montgomery County, Howard County, or Prince George’s County?

The overtime threshold (40 hours per workweek) is uniform under Maryland state law and the FLSA regardless of county. However, those counties have higher minimum wage rates than the statewide $15.00/hour, which means the minimum overtime rate is also higher for workers in those jurisdictions. As of 2026: Montgomery County overtime rates start at $23.25/hour (large employers) or $22.50/hour (mid-size) based on local minimum wages; Howard County and Prince George’s County have slightly higher minimum wages than the state rate, affecting minimum overtime pay.

Does my agricultural overtime threshold depend on my employer’s size?

Yes. Agricultural workers in Maryland may have an overtime threshold of 60 hours/week (if covered by the MWHL but exempt from FLSA overtime), or the standard 40-hour FLSA threshold (if FLSA-covered), or no overtime entitlement at all (if employed on a small farm that qualifies for the state agricultural exemption). The applicable rule depends on the employer’s size (measured in agricultural-worker days per quarter) and whether the worker falls within FLSA exemptions.