Montgomery County’s Minimum Wage to Increase on July 1

The minimum wage in Montgomery County will increase on July 1.

As previously reported on Conduit Street, Montgomery County’s minimum wage will rise the minimum wage incrementally, each July 1, until it reaches $15 per hour in 2022. The number of workers employed by the business will determine the amount of the increase.

The County’s minimum wage will rise to $14 for employers with 51 or more employees and $13.25 for employers with 50 or fewer employees; a small employer, with 10 or fewer employees, is required to pay $13 hourly.

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Most employees must be paid at least the Montgomery County minimum wage rate. Employees age 18 and under, working under 20 hours per week, are exempt from this rate. Employees under 18 years of age must earn at least 85 percent of the State minimum wage rate.

As previously reported on Conduit Street, the Maryland General Assembly last year approved legislation to phase in an increase in the State minimum wage to $15.00 per hour by January 1, 2025, with a longer phase-in for employers with 14 or fewer employees. The current minimum wage is $11.00 per hour.

The Board of Public Works (BPW) may temporarily suspend one scheduled increase in the State minimum wage for one year between October 1, 2020, and October 1, 2024, if it finds that the seasonally adjusted total employment is negative as compared with the previous six-month period. If total adjusted employment is negative, BPW may also consider the recent performance of State revenues in making its determination.

According to the Department of Legislative Services, general fund spending, related to payroll costs and health care provider rate increases, increases over previously expected levels by an estimated $26.7 million in fiscal 2021, $56.5 million in fiscal 2022, $86.9 million in fiscal 2023, and $118.1 million in fiscal 2024.

More information about Montgomery County’s minimum wage increase is available here.

Useful Links

Previous Conduit Street Coverage: Maryland’s Minimum Wage Law, Explained

Previous Conduit Street Coverage: Previous Conduit Street Coverage: $15 Minimum Wage Passed as Veto Overridden

Previous Conduit Street Coverage: Montgomery Council Passes Revised $15 Minwage

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