Maryland FLSA Laws: Your Guide to Compliance
Protect Your Business with Maryland-Specific FLSA Auditing
Minimum Wage in Maryland
- Federal FLSA: $7.25/hour.
- Maryland Law: $15.00/hour (non-tipped) as of January 1, 2024, for employers with 15+ employees; $14.50/hour for smaller firms (Maryland Code, Labor and Employment § 3-413). Tipped employees: $3.63/hour with a $11.37 tip credit (adjusted to meet $15.00 total). No automatic CPI increases.
- What You Need to Know: Higher state rate applies—violations can lead to triple damages and fines up to $1,000 per employee.
Overtime Pay
- Federal FLSA: 1.5x regular rate for hours over 40/week.
- Maryland Specifics: Matches federal 40-hour rule, with overtime based on state minimum wage ($22.50/hour for large employers in 2025). Some counties (e.g., Montgomery) have higher local rates—$16.70/hour as of July 1, 2024 (Maryland Code, § 3-414).
- Risk: Local wage variations and misclassifications can trigger costly audits or lawsuits.
Child Labor
- Maryland Rules: Minors under 14 restricted to limited roles; 14–15 capped at 3 hours/school day, 8 hours/non-school day; 16–17 barred from hazardous jobs. Work permits required under 18 (Maryland Code, § 3-206).
- Federal FLSA: Aligns, but Maryland’s permit rule is stricter—state law prevails.
Recordkeeping
- Federal FLSA: 3-year retention of payroll and hours records.
- Maryland Addition: 3 years minimum, with detailed pay stubs required showing hours, wages, and deductions (Maryland Code, § 3-424).
Enforcement & Penalties
- Federal: DOL penalties, back wages, up to $1.2M average for violations.
- Maryland: Triple damages for unpaid wages (willful violations), fines up to $1,000 per violation, enforced by MD DLLR (Maryland Code, § 3-507.2).
Why It Matters for Your Business
- CFOs and Managers: Maryland’s tiered minimum wage, local variations (e.g., Montgomery County), and triple-damage penalties create compliance complexity. A payroll misstep could cost millions in fines or litigation.
- Avoid Costly Mistakes: Stay compliant with expert FLSA auditing tailored to Maryland laws.
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