Maryland’s Minimum Wage Increase Effective January 1, Other Laws Will Take Effect Also

Maryland’s Minimum Wage Increase Effective January 1, Other Laws Will Take Effect Also

Minimum Wage Increase

Effective January 1, 2024, the state minimum wage will increase statewide to $15.00 per hour with a few exceptions. All employers in the state will be required to comply. However, like the federal minimum wage law, which operates as a floor, localities in Maryland can have a higher minimum wage. Montgomery County and Howard County have higher minimum wages for certain classes of employers.

Additionally, a new state minimum wage posters will be available through the Maryland Department of Labor. Please, do not pay another private company to get the required poster when you can download it for free from the State. As soon as the poster is available from the Department of Labor, we will post a link.
Non-Compete Restrictions

On Oct. 1, 2023, a new Maryland law went into effect that banned non-compete agreements for lower wage workers as being against public policy. The law set a minimum wage threshold of 150 percent of the minimum wage as the floor for any kind of non-compete agreement, broadly defined. Effective January 1, 2024, the law will require employers who want to have an employee be a party to a non-compete agreement to be paid at least $22.51 per hour.

For employers who have employees who make $22.50 or less per hour, the employer must either increase the employee’s pay or eliminate the non-compete.