Maryland Labor Laws
An employer guide for 2026

Maryland labor laws at a glance

Maryland sets a $15.00 statewide minimum wage, lets several counties set their own higher rates, requires sick and safe leave, and is launching a paid family and medical leave insurance program. The table summarizes the main rules; details follow.

EZTime labor rule alerts flag overtime and missed rest periods before payroll.

Maryland minimum wage

The Maryland Department of Labor's Minimum Wage and Overtime Law page sets the state minimum wage at $15.00 per hour. The department does not announce a new statewide rate for January 1, 2027. Several counties require more, and you must pay the rate that applies where the work is performed.

Montgomery County adjusts its rates each July 1 based on inflation.

Tipped and youth wages

Employers may pay tipped employees a cash wage of at least $3.63 per hour, as long as tips bring total pay up to the full state minimum wage; the employer must cover any gap. Montgomery County requires a tipped cash wage of at least $4.00. Restaurants and other employers that rely on tips must provide a Tip Credit Wage Statement. You must also conspicuously post the state's notice to tipped employees wherever they work; it explains that employers may not make tipped staff pay for, or deduct wages for, a customer who leaves without paying.

Employees under 18 must earn at least 85% of the state minimum wage, which is $12.75 per hour at the current rate. Montgomery County separately allows 85% of its own minimum for workers under 20 during their first six months.

Overtime in Maryland

Maryland requires overtime at 1.5 times the regular rate for hours over 40 in a workweek. There is no daily overtime rule. Two industries have different thresholds:

• Bowling alleys and residential care institutions other than hospitals: overtime after 48 hours a week.
• Agricultural workers covered by the law: overtime after 60 hours a week.

The state law exempts executive, administrative and professional employees as defined under the FLSA, outside salespeople, certain commission-based employees, immediate family of the employer, employees under 16 working fewer than 20 hours a week, and several other groups. Some exemptions, such as for taxicab drivers, apply only to overtime. Maryland law does not require private employers to offer compensatory time. For the federal tests, see our FLSA overtime guide, and use the overtime calculator for weekly totals.

Meal and rest breaks

According to the department's breaks guide, Maryland has no general law requiring meal or rest breaks for adult workers. There are two important exceptions.

Minors

Workers under 18 may not work more than five consecutive hours without a non-working period of at least 30 minutes.

Large retail employers

The Healthy Retail Employee Act covers retail businesses with 50 or more retail employees in Maryland for each working day in 20 or more calendar weeks. Covered employees must receive:

• A 15-minute break for 4 to 6 consecutive hours of work (can be waived in writing for shifts under 6 hours).
• A 30-minute break for more than 6 consecutive hours.
• For 8 or more consecutive hours, a 30-minute break plus a 15-minute break for every additional 4 consecutive hours.

FLSA-exempt employees, commissioned salespeople who meet the pay test, employees at corporate offices, and certain others are excluded. The law does not fix when the break must be taken.

Sick and safe leave and family leave

Maryland's Healthy Working Families Act requires earned sick and safe leave. The department's FAQ explains the core rules:

• Paid or unpaid: employers with 15 or more employees (average monthly count over the prior year) must provide paid leave; employers with 14 or fewer must provide unpaid leave under the same rules.
• Accrual: at least 1 hour for every 30 hours worked, up to 40 hours a year. Up to 40 unused hours carry over, but the total balance can be capped at 64 hours. Front-loading 40 hours at the start of the year is allowed.
• Waiting period: new employees generally may be required to wait 106 days before using leave.
• Uses: the employee's or a family member's illness or preventive care, maternity or paternity leave, and absences related to domestic violence, sexual assault or stalking.
• Exempt workers: employees who regularly work fewer than 12 hours a week, employees under 18 at the start of the year, and certain other groups.

Display the Earned Sick and Safe Leave employee notice. Sick leave generally does not have to be paid out at separation unless your policy says so, while unused vacation must be paid out unless you told employees in writing at hiring that it is forfeited. Our PTO accrual calculator can help you set the accrual rate.

Family and Medical Leave Insurance (FAMLI)

Maryland's FAMLI program will let eligible employees take up to 12 weeks of paid, job-protected leave starting January 1, 2028. According to the contributions page, contributions begin with wages paid from January 1, 2027, at an initial rate of 0.9% of wages up to the Social Security wage cap, split equally: 0.45% from the employer and 0.45% from the employee. Employers with fewer than 15 total employees remit only the employee share. Set up payroll withholding before the first 2027 paycheck.

Paydays and final paychecks

Maryland employees must be paid at least once every two weeks or twice a month, according to the department's pay frequency guidance. Executive, administrative and professional employees may be paid less often.

When employment ends for any reason, wages earned are due by the date the employee would have been paid if the job had continued, which is the next regular payday (termination pay guidance). Employers generally do not have to let an employee work out a notice period, or pay for it, unless a contract or policy says otherwise.

Child labor hours

Every worker under 18 needs a work permit in Maryland. Under the department's employment of minors rules, the minor applies online after receiving a job offer, and the minor, a parent or guardian, and the employer each sign it. A new permit is needed for each new job.

Recordkeeping and posters

The department lists required notices on its labor and employment publications page, including the Maryland Minimum Wage and Overtime Law poster, Equal Pay for Equal Work, the Employment of Minors fact sheet, and the notice to tipped employees. Other agencies supply the workers' compensation, unemployment insurance, civil rights and MOSH safety posters. Keep accurate daily and weekly time records for every non-exempt employee, especially where county rates or tip credits apply. A time card calculator is a quick way to check totals.

How EZTime helps Maryland employers

EZTime gives Maryland businesses one place to capture hours and keep them compliant. Employees can clock in from a GPS mobile time clock with geofencing, tap NFC tags at a job site, or use a tablet kiosk or biometric clock at the front door. Managers build shifts with templates and approve swaps in the scheduling software, get alerts before someone crosses an overtime threshold or misses a break, and track PTO and sick-leave balances automatically. At the end of the period, export payroll-ready Excel or PDF reports that work with any payroll software. Plans start from $2 per employee per month, with a 14-day trial — see pricing.

This guide is general information, not legal advice. Laws change; check the Maryland Department of Labor, Employment Standards Service or an employment attorney. Last reviewed November 2026.