Maryland’s minimum wage increase will go into effect on January 1, 2024, a year sooner than originally planned. Under prior legislation, the minimum wage increase was expected to be phased in each year with the expectation it would reach $15.00 per hour by January 1, 2025 for large businesses and January 1, 2026 for small companies. In this most recent session, the General Assembly passed the Fair Wage Act of 2023 and accelerated the timeline to this upcoming calendar year. Governor Moore recently approved this law in April. Employers with locations in Maryland should get set for the new $15.00 rate as it will take effect for all businesses on January 1, 2024.
Similarly, the new minimum wage will impact large employers (15+ employees) with low-wage employees who have non-competes. Under the current law, non-competes are unenforceable as to employees who earn less than $15.00 per hour or $31,200 annually. With the upcoming rate increase, the ban on non-competes will be expanded to those employees who earn $19.88 per hour or $41,350 annually. This modification goes into effect on October 1, 2023.
If you have any questions about these upcoming changes, contact the RKW employment group.
