impactAlert: Maryland, DC Minimum Wage Increases Go into Effect Today, July 1- 07/1/2016

As a reminder, effective today (July 1), the minimum wage in Maryland and the District of Columbia increases.

For Maryland, the minimum wage rises from $8.25 per hour to $8.75 per hour. (The Maryland rate will further increase to $9.25 per hour on July 1, 2017 and to $10.10 per hour on July 1, 2018.)

For the District of Columbia, the minimum wage increases from $10.50 per hour to $11.50 per hour.

In addition to this milestone today, the District of Columbia has just become the latest city to set a $15 minimum wage (as we previewed last January in impactnews). The measure, passed unanimously by the City Council and signed by Mayor Muriel Bowser last week, will gradually boost the city’s minimum wage to $15 an hour by 2020.

This new law also raises the tipped minimum wage, currently $2.77, to $5 per hour by 2020. Beginning on July 1, 2021, the city’s minimum wage and base tipped employee pay will be adjusted based on the applicable Consumer Price Index.

In addition, note that Montgomery County’s (MD) minimum wage goes up today from $9.55 per hour to $10.75 per hour.

impactAction: We recommend that employers be sure to review the pay rates of their employees and plan any changes necessary today to comply with these rate increases.

If you have any questions about complying with these changes, please contact an impactHR team member via email at info@impacthrllc.com or phone 410-312-7882.

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