On May 5, 2014, Governor O’Malley signed the Maryland Minimum Wage Act of 2014.   The law gradually increases Maryland’s minimum wage from $7.25 based on the following schedule:

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It is important for employers to recognize that certain counties in Maryland, including Montgomery County and Prince George’s County, have implemented their own minimum wage increase for workers within those counties.  Employers must ensure they are in compliance with both state and county wage laws.Although the original versions of the bill included additional inflation-based minimum wage increases, these automatic increases were excluded from the final law.  Moreover, restaurants that have an annual gross income of $400,000 or less are not required to meet the new minimum wages.  In addition, employees under the age of 20 are only required to be paid 85% of the new minimum wage.