Maryland HR Compliance
for Small Businesses

The minimum wage in Maryland is $15.00/hour statewide. Montgomery County: $18.00 (51+ employees, July 1, 2026). Prince George's County: $15.30 (Jan 1, 2026). Tipped: $3.63.. Tipped employees may be paid $3.63/hour with a valid tip credit. Always verify the current rate at the start of each calendar year — many state rates are indexed to CPI and adjust annually.

In Maryland: involuntary terminations — Next regular payday. Voluntary resignations — . Accrued PTO is not required to be paid out on termination unless your written policy promises it. Never hold a final paycheck over unreturned equipment or unsigned paperwork — that exposes you to wage claims regardless of the circumstances.

Yes. Maryland requires paid sick leave. Healthy Working Families Act: all employers with MD employees. 15+: paid sick leave. Under 15: unpaid. 1hr/30hrs, up to 40hrs/yr, 64-hr carryover cap. Usable after 106 calendar days.. Track accrual, carryover rules, and permissible uses carefully — enforcement actions typically follow audits of smaller employers with incomplete records.

Yes. Maryland has a state paid family and medical leave program. FAMLI: contributions begin Jan 1, 2027 at 0.9% of wages (0.45%/0.45% split for 15+ employees). Benefits begin Jan 2028. Up to 12 weeks, up to $1,000/week. Employer registration opens Fall 2026.. Understand your contribution obligations, posting requirements, and how the program coordinates with any employer-sponsored short-term disability policy.

Yes. Maryland requires pay transparency in job postings. SB 525 (eff. Oct 1, 2024): ALL employers must disclose wage range + benefits description in every job posting for positions performed at least in part in MD. If not posted, disclose before discussing compensation.. Non-compliance can result in fines and enforcement action — audit all active job listings and internal promotion announcements to ensure full compliance.

Md. Code Ann. Lab. & Empl. 3-716: void for employees earning 150% or less of state min wage ($22.50/hr or less). Eff. July 1, 2025: banned for licensed healthcare professionals providing direct patient care earning $350,000 or less. Above $350,000: max 1 year / 10 miles. Maryland courts evaluate noncompetes for legitimate business interest and reasonableness of scope, geography, and duration.

Maryland uses the following test to determine worker classification: ABC-type test for unemployment insurance purposes. Misclassification exposes employers to back taxes, penalties, and liability for benefits and wage-hour violations. When in doubt, consult counsel before engaging contractors for ongoing work.

Meal breaks: Healthy Retail Employee Act applies to certain retail establishments. No general state meal/rest break statute.. Rest breaks: None beyond federal for most industries. Missing a required break can trigger a premium pay penalty — make sure managers understand that breaks are mandatory, not optional, and document compliance in timekeeping records.