Maryland Eyes $20 Minimum Wage and Stronger Protections

Maryland lawmakers, labor advocates, and tipped workers came together on Wednesday to rally behind a proposed bill that could bump the state’s minimum wage up to $20 an hour.

If passed, the No Tax on Tips Act would gradually raise wages by 2027 and crack down on wage theft.

Another big change? The bill aims to bring more transparency to restaurant service fees. Basically, restaurants wouldn’t be able to charge a service fee unless they clearly disclose it—on the menu or somewhere obvious—before you place your order. They’d also have to explain what the fee covers and whether it goes directly to employees. If they don’t follow these rules, they could face penalties for unfair business practices.

Right now, Maryland’s minimum wage is $15, and there’s no scheduled increase for 2025. But under this bill, wages would go up to $17 an hour by early 2027, then $18.50 in 2028, and finally hit $20 an hour by mid-2028.

For workers under 18, employers could still pay them 85% of the state minimum wage.

A big part of the bill also focuses on tipped workers. It would end subminimum wages for them, meaning they’d get the same base pay as other employees. Employers wouldn’t be allowed to count tips as part of their wages anymore, but tips themselves would be tax-free, and small businesses could get tax credits.

Starting in July 2028, businesses would have to pay tipped workers at least the full state minimum wage—no more relying on tips to make up the difference. But don’t worry, the bill wouldn’t stop employers from giving workers their well-earned tips!

All in all, this bill is pushing for higher wages, stronger protections for workers, and more transparency in the restaurant industry. Now, it’s up to lawmakers to decide if it moves forward!

Maryland Pushes for $20 Minimum Wage and Stronger Worker Protections was originally published on wolbbaltimore.com