Minimum Wage Increase - Effective July 1, 2023
Effective July 1, 2023, per Montgomery County Code Section 27-68, please be advised that the minimum wage rate for Montgomery County increased to $16.70 for employers with 51 or more employees, $15.00 for employers with 50 or fewer employees and $14.50 for employers with 10 or fewer employees. Most employees must be paid the Montgomery County minimum wage rate. Employees age 18 and under working under 20 hours per week are exempt from this rate. Employees under 20 years of age must earn at least 85% of the County Minimum Wage Rate for the first six months of employment. Amusement and recreational establishments (who meet certain requirements): must pay employees at least 85% of the State Minimum Wage Rate. For more information, visit the following links:
Tipped Employees
Tipped employees (earning more than $30 per month in tips) must earn the Montgomery County Minimum Wage Rate per hour. Employers must pay at least $4.00 per hour. This amount plus tips must equal at least the Montgomery County Minimum Wage Rate. Restaurant employers who utilize a tip credit are required to provide employees with a written or electronic wage statement for each pay period showing the employee’s effective hourly rate of pay including employer paid cash wages plus tips for tip credit hours worked for each workweek of the pay period.
Minimum Wage Reporting
Montgomery County Code, Chapter 27-Human Rights and Civil Liberties, Section 27-69 (d), requires employers of tipped employees to submit a quarterly wage report within 30 days after the end of each quarter to the Montgomery County Office of Human Rights. Please select the button below to file a report.
Minimum Wage Reporting FormMinimum Wage Transition Table
| Effective Date | Large Employer | Mid-sized Employer | Small Employer |
|---|---|---|---|
| July 1, 2023 | $16.70 | $15.00 | $14.50 |
| January 1, 2024 | $16.70 | $15.00 | $15.00 |
| July 1, 2024 | Increased annually by CPI-W. 1 |
$15.00 + CPI-W + 1% 2 | $15.00 |
| July 1, 2025 | Increase annually by CPI-W + up to 1% until equal to large employers. |
$15.00 + CPI-W + 1% 3 | |
| July 1, 2026 and subsequent years. |
Increase annually by CPI-W + up to 1% until equal to large employers. |
A “ large employer” is an employer who employs 51 or more employees. The minimum wage for large employers required under County Code Section 27-68 is adjusted annually on July 1 according to the average increase, if any, in the previous year’s Consumer Price Index for Urban Wage Earners and Clerical Workers for Washington-Arlington, rounded to the nearest five cents;
A “ mid-sized employer” is:
- an employer who employs between eleven and 50 employees; or
- an employer who employs eleven or more employees and:
- has tax exempt status under Section 501(c)(3) of the Internal Revenue Code; or
- provides “home health services” as defined by 42 C.F.R. § 440.70 or “home or community-based services” as defined by 42 C.F.R. § 440.180, and receives at least 75% of gross revenues through state and federal Medicaid programs.
A “ small employer” is an employer who employs 10 or fewer employees.
1 On January 1, 2024, the Maryland Fair Wage Act of 2023 raises the minimum hourly wage for all employers to $15 statewide. As a result of this change to State law, the $15 wage rate for Montgomery County small employers must increase on January 1, six months ahead of County law.
2 Beginning July 1, 2024, the minimum wage for mid-size employers will be adjusted annually by the average increase, if any, in the previous year’s Consumer Price Index for Urban Wage Earners and Clerical Workers for Washington-Arlington, rounded to the nearest five cents. If the rate increase is less than $0.50 and the mid-sized employer minimum wage rate does not equal the large employer minimum wage rate, an additional adjustment equal to one percent of the minimum wage required for the prior year will be added to the annual adjustment, up to a combined total increase of $0.50.
3 Beginning July 1, 2025, the minimum wage for small employers will be adjusted annually by the average increase, if any, in the previous year’s Consumer Price Index for Urban Wage Earners and Clerical Workers for Washington-Arlington, rounded to the nearest five cents. If the rate increase is less than $0.50 and the small employer minimum wage rate does not equal the minimum wage rate for other employers, an additional adjustment equal to one percent of the minimum wage required for the prior year will be added to the annual adjustment, up to a combined total increase of $0.50.