May 2022

State Updates

 

Maryland, Howard County establishes minimum wage

01/06/22

Author: ADP Admin/Tuesday, January 4, 2022/Categories: Compliance Corner , State Compliance Update, Maryland

Howard County, MD has enacted an ordinance that establishes a minimum wage rate for work performed in the county.  The county’s minimum wage depends on whether the employer is a government employer, large employer, small employer, or paying a tipped employee. 

The Details:

Howard County Government Employers

For Howard County government employers, the minimum wage is:

  • $15.00 per hour effective July 1, 2022.                  
  • $16.00 per hour effective July 1, 2024.                       

Large Employers

For employers with 15 or more employees, the minimum wage is:

  • $14.00 per hour effective April 1, 2022.                      
  • $15.00 per hour effective January 1, 2023.                      
  • $16.00 per hour effective January 1, 2025.                  

Small Employers 

For small employers, the minimum wage is:

  • $12.50 per hour effective April 1, 2022                        
  • $13.25 per hour effective January 1, 2023                   
  • $14.00 per hour effective January 1, 2024                   
  • $14.75 per hour effective January 1, 2025                     
  • $15.50 per hour effective January 1, 2026                    
  • $16.00 per hour effective July 1, 2026             

The ordinance defines small employers as those with 14 or fewer employees, tax exempt employers under IRS Code Sec. 501(c)(3), employers providing "home health services," or food service facilities employers. A food service facility generally includes: a restaurant, coffee shop, cafeteria, short order cafe, luncheonette, tavern, sandwich stand, soda fountain, retail market, or retail bakery outlet.      

 

Note: Effective January 1, 2022, the state's minimum wage is $12.20 per hour for employers with 14 or fewer employees and $12.50 per hour for employers with 15 or more employees. Where employees are entitled to more than one minimum wage, employers must pay the higher amount. 

 

Future Increases:

Beginning on January 1, 2027, the minimum wage rates will be adjusted annually based on the annual average increase in the consumer price index for urban consumers (CCPI-U Baltimore-Columbia-Towson, Maryland averages).

 

Tipped Employees:

Tipped employees must be paid at least $3.63 in cash wages per hour. 

 

Exceptions:

The amounts noted above for Howard County don’t apply to the following types of employees:

  • Employees under age 18 (Note: Employers must pay these employees at least 85% of Howard County minimum wage);
  • Employees under age 16 and who work no more than 20 hours per week; 
  • Those employed as part of the training in a special education program; 
  • Individuals employed as a hand-harvest laborer and paid on piece-rate basis;
  • A child, parent, spouse, or another member of the immediate family; and
  • An employee who is in a non-administrative capacity at an organized camp. 

 

Next Steps:

If you are subject to the Howard County provisions, ensure that you pay in accordance with the rates noted above for services provided by employees within Howard County. Please contact your dedicated service professional with any questions.

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Tags: 01/06/22

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