Montgomery County, MD Modifies Minimum Wage Law, Creates Employee Paid Sick Leave Rights

Tipped Employee Minimum Wage
Two amendments to the Montgomery County, MD County Code went into this summer changing employers’ payment of wages responsibilities. The mandatory Minimum Wage workplace notice to employees has just been revised to reflect these changes.

First, Bill 24-15 establishes $4.00 per hour as the minimum amount an employer must pay a tipped employee. The bill also revises the way an employer’s tip credit is calculated. The tip credit is the difference between the County minimum wage rate and the $4.00 tipped employee minimum wage. This means that Montgomery County employers are currently allowed a maximum tip credit of $4.40 per hour. On October 1, 2015, the County minimum wage rate will increase to $9.55 per hour, increasing the maximum tip credit to $5.55 per hour. The bill went into effect July 1, 2015.

Effective Dates of Scheduled Minimum Wage Increases
Also passed this year, Bill 59-14 changes the effective dates of increases in the County minimum wage. The scheduled minimum wage increase to $10.75 per hour will take effect July 1, 2016. Previously, this rate was scheduled for October 1, 2016. The scheduled minimum wage increase to $11.50 per hour will take effect July 1, 2017. Previously, this rate was scheduled for October 1, 2017.

Wage Disclosure
Bill 51-14 also merits mention. This Bill provides that an employer may not discriminate against or retaliate against an employee for inquiring about, discussing or disclosing the employee’s own wages or the wages of another employee. The bill was effective May 13, 2015.

Coming Soon –Sick and Safe Leave
Montgomery County, Maryland also joins other locations around the country establishing a mandatory sick leave benefit for employees. Bill 60-14 goes into effect on October 16, 2016 and will require employers to provide employees up to 56 hours of sick leave each year. For employers with five or more employees, the sick leave is paid. For employers with fewer than five employees, 32 hours must be paid and 24 hours may be unpaid. The leave may be used for the employee’s own health needs or to care for a family member with a health condition, or to obtain victim services due to domestic violence, sexual assault or stalking.

Employers will be able to comply with the mandatory notice to employees of rights and benefits under the sick leave law by posting the County’s upcoming Sick and Safe Leave notice in the workplace. In the meantime, Montgomery County employers must post the updated Minimum Wage Poster, available here, effective immediately.