Maryland Employer Guide: Minimum Wage, Paid Sick Leave and Local Rates
Maryland Employer Guide: Minimum Wage, Paid Sick Leave and Local Rates
If you employ people in Maryland, three sets of rules set what you pay and how you handle time off: the state minimum wage, higher rates in several counties, and the Healthy Working Families Act, which governs earned sick and safe leave. This guide covers the current figures, the employer-size thresholds that change your obligations, and the points you need to confirm with the state before you set payroll.
Informational only, not legal or tax advice. This guide summarizes Maryland wage and leave rules as of October 2026. Wage rates, accrual rules and county schedules change, so confirm every figure with the Maryland Department of Labor before you rely on it. If your situation is complicated, such as staff spread across several counties, tipped employees, or exempt job classifications, talk to a qualified employment attorney or CPA.
Maryland Minimum Wage in 2026: $15.00 Per Hour
The Maryland minimum wage is $15.00 per hour, according to the Maryland Department of Labor. This is the statewide floor. It applies to employers across Maryland unless a county sets a higher rate that covers your workers.
Most searches for maryland minimum wage 2026 come down to that one number. Because the state rate is only a floor, the question most employers need answered is whether a local rate also applies to them. The next section covers that.
Local Minimum Wage Rates in Maryland Counties
Several Maryland counties set their own minimum wage above the state rate. The Maryland Department of Labor wage-and-hour page lists the following local rates, effective July 1, 2026:
| Jurisdiction | Rate | Employers covered |
|---|---|---|
| Montgomery County | $18.00 per hour | Employers with 51 or more employees |
| Montgomery County | $16.50 per hour | Employers with 11 to 50 employees |
| Montgomery County | $15.95 per hour | Employers with 10 or fewer employees |
| Howard County | $16.00 per hour | All employers |
| Prince George's County | $15.30 per hour | All employers |
Prince George's County is listed at $15.30 for all employers, but the Labor page as summarized here does not settle its effective date, so confirm that date with the Maryland Department of Labor before you change pay.
Montgomery County indexes its rates each July 1 to the Washington-Baltimore CPI-W. Expect the figures to move again on July 1, 2027, and build that adjustment into your budget.
How Local Rates Affect Your Payroll
A county rate generally follows the work performed in that county. If you have employees who work in more than one jurisdiction, or remote staff whose location is unclear, confirm with the Maryland Department of Labor which rate applies before you assign it.
Montgomery County's rate depends on how many employees you have. Confirm how the state counts headcount for that tier before you place your business in a bracket, because the wrong tier means underpaying a covered worker.
Maryland Overtime Law
Maryland overtime law sits within the Maryland Wage and Hour Law, and federal Fair Labor Standards Act rules also apply to many employers. In general, non-exempt employees must receive overtime pay, typically time and a half, for hours worked beyond the weekly limit that applies to them.
The exact weekly threshold, which roles qualify as exempt, and how to treat salaried staff are questions this guide does not settle. Confirm them with the Maryland Department of Labor, and check the federal rules as well, before you classify anyone as exempt.
The most common overtime mistake is assuming that a salary means an exemption. A salaried employee can still be owed overtime if the job duties do not meet the exemption tests. Review each job description against the rules, not just the pay method.
Maryland Sick Leave Law: The Healthy Working Families Act
The Maryland sick leave law is the Healthy Working Families Act, found in Labor and Employment section 3-1301 and following. It took effect February 11, 2018. It requires employers to provide earned sick and safe leave, and whether that leave is paid depends on your headcount.
| Employer size | Type of earned sick and safe leave |
|---|---|
| 15 or more employees | Paid |
| Fewer than 15 employees | Unpaid |
Your size determines whether employees receive paid or unpaid leave. It does not change whether the leave must be provided at all.
How Leave Accrues
According to the Maryland Department of Labor, employees accrue leave at 1 hour for every 30 hours worked. An employee who works 240 hours in a year accrues 8 hours of earned sick and safe leave for that year. The accrual rate is the same for every employer, regardless of size.
What to Confirm Before You Write a Policy
The Healthy Working Families Act also addresses how much leave an employee can build up and whether unused leave carries over. This guide does not state those figures as settled. Confirm the following with the Maryland Department of Labor before you finalize your leave policy:
- The maximum amount of earned sick and safe leave an employee may accrue
- How much unused leave carries over from one year to the next
- How employees are counted toward the 15-employee threshold
- Any notice, documentation and recordkeeping requirements that apply to your business
Put the confirmed caps and carryover rules in writing in your handbook. Employees who understand their balance are less likely to dispute a payout or a denied request later.
Maryland Employer Checklist
Use this sequence when you set up or review payroll for Maryland workers:
- Confirm the statewide minimum wage of $15.00 per hour, then check whether your county sets a higher rate.
- Count your employees and identify which Montgomery County tier applies, if your business is located there or has covered workers there.
- Review each job's classification, and confirm overtime eligibility for every non-exempt employee.
- Determine whether your leave is paid or unpaid based on your employee count, and track accrual at 1 hour for every 30 hours worked.
- Write your leave policy using the accrual caps and carryover rules confirmed by the Maryland Department of Labor.
- Update payroll rates on July 1 each year, since the county rates adjust on that date.
Where to Confirm Maryland Employer Rules
The Maryland Department of Labor is the primary source for state and county wage rates, overtime questions, and the Healthy Working Families Act. Its wage-and-hour page lists the local rates discussed above. Confirm any figure in this guide with the agency before you rely on it, because rates and effective dates change.
For payroll tax withholding and related tax questions, go to the Comptroller of Maryland at marylandcomptroller.gov. Wage rules and tax rules are handled by different agencies, so check both.
Wage, overtime and leave rules are where employers most often make costly errors, usually because a county rate, a classification or an accrual rule was missed. A short review with an employment attorney or CPA before you hire your first employee, or before you change pay structures, is inexpensive compared with back wages and penalties.