Federal – Families First Coronavirus Response Act
On December 31, 2020, the Families First Coronavirus Response Act (FFCRA) will expire but the recently signed federal COVID-19 stimulus bill extends the FFCRA payroll tax credits through March 31, 2021. Although employers will not be required to provide employees with paid sick or family leave after December 31, 2020, if they choose to allow employees to take leave for a COVID-19 related reason under the FFCRA framework between January 1 and March 31, 2021, they may still claim the payroll tax credit. Employers should review their FFCRA and leave policies and communicate all COVID-19 leave options to employees moving into 2021.
State – Minimum wage
On January 1, 2021, the Maryland minimum wage (except for Montgomery County) will increase to $11.75/hour (for employers with 15 or more employees) and $11.60/hour (for employers with 14 or fewer employees). As of January 1, 2021, Prince George’s County will follow the State minimum wage.
Maryland and Prince George’s County Minimum Wage Rate Schedule
Employers with 15 or more employees
$11.75 per hour effective January 1, 2021
$12.50 per hour effective January 1, 2022
$13.25 per hour effective January 1, 2023
$14.00 per hour effective January 1, 2024
$15.00 per hour effective January 1, 2025
Employers with 14 or fewer employees
$11.60 per hour effective January 1, 2021
$12.20 per hour effective January 1, 2022
$12.80 per hour effective January 1, 2023
$13.40 per hour effective January 1, 2024
$14.00 per hour effective January 1, 2025
$14.60 per hour effective January 1, 2026
$15.00 per hour effective July 1, 2026
*The minimum “Tip Wage” in Maryland (except for Montgomery County) remains at $3.63 per hour for tipped employees. If tipped employees do not make enough in employer-required tip wages plus tips to earn at least the full applicable minimum wage per hour for the workweek, the employer must make up the difference.
Montgomery County Minimum Wage
The most recent Montgomery County minimum wage increases remain in effect until the next scheduled increases on July 1, 2021.
Large Employers (51 or more employees)
Effective July 1, 2020, $14.00 per hour
Mid-sized Employers (between 11 and 50 employees)
Effective July 1, 2020, $13.25 per hour
Small Employers (10 or fewer employees)
Effective July 1, 2020, $13.00 per hour
*The minimum “Tip Wage” in Montgomery County remains at $4.00 per hour for tipped employees. If tipped employees do not make enough in employer-required tip wages plus tips to earn at least the full applicable minimum wage per hour for the workweek, the employer must make up the difference.
