HR Alert

MD: Montgomery County Minimum Wage Rises in July 2018

Minimum Wage Based on Employer Size

Montgomery County has enacted an ordinance with county minimum wage increases over the next several years, based on employer size. An outline of the adjusted rates is presented below.

The county minimum wage generally must be the greater of the minimum wage required under federal or state law or the amounts listed below.

Large Employers

Large employers (who employ 51 or more employees) must pay:

  • $12.25 per hour, effective July 1, 2018;
  • $13.00 per hour, effective July 1, 2019;
  • $14.00 per hour, effective July 1, 2020;
  • $15.00 per hour, effective July 1, 2021; and
  • Adjusted for inflation (if applicable), beginning July 1 of each subsequent year.

Mid-Sized Employers

Until the minimum wage for mid-sized employers (generally employers who employ between 11 and 50 employees) is equal to the minimum wage required under the ordinance (Sect. 27-68), mid-sized employers must pay:

  • $12.00 per hour, effective July 1, 2018;
  • $12.50 per hour, effective July 1, 2019;
  • $13.25 per hour, effective July 1, 2020;
  • $14.00 per hour, effective July 1, 2021;
  • $14.50 per hour, effective July 1, 2022;
  • $15.00 per hour, effective July 1, 2023; and
  • Effective July 1, 2024, adjusted for inflation. Click here (Sect. (b)(7)) for more information about the adjusted rate.

Note: A mid-sized employer also includes employers with 11 or more employees that: have tax-exempt status under Section 501(c)(3) of the Internal Revenue Code; or provide certain home health services (among other things). Click here for more details.

Small Employers

Until the minimum wage for small employers (generally employers who employ 10 or fewer employees) is equal to the minimum wage required under the ordinance (Sect. 27-68), small employers must pay:

  • $12.00 per hour, effective July 1, 2018;
  • $12.50 per hour, effective July 1, 2019;
  • $13.00 per hour, effective July 1, 2020;
  • $13.50 per hour, effective July 1, 2021;
  • $14.00 per hour, effective July 1, 2022;
  • $14.50 per hour, effective July 1, 2023;
  • $15.00 per hour, effective July 1, 2024; and
  • Effective July 1, 2025, adjusted for inflation. Click here (Sect. (c)(8)) for more information about the adjusted rate.

More information (e.g., exclusions and calculating the number of employees) is available in the text of the ordinance


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