by Brian Steinbach
However, each jurisdiction phases in the increase in different amounts and at different times, starting July 1, 2014. Employers in the D.C. area will now face several different local minimum wage requirements in addition to those imposed by federal law. They will have to be careful to ensure that each of their employees is paid the proper wage for the area in which they work.
Under the D.C. law, the general minimum wage for employees working in D.C., currently $8.25, will increase to $9.50 on July 1, 2014; to $10.50 on July 1, 2015; and to $11.50 on July 1, 2016. Thereafter, it will be adjusted on each July 1 in proportion to any increase in the CPI-U for the Washington Metropolitan Statistical Area published by the BLS, rounded to the nearest nickel. The D.C. law also added new quarterly reporting requirements for employers who take the tipped credit and provides for random reporting audits, but makes no change in the current $2.77 minimum wage for tipped employees.
The Prince George’s County law increases the minimum wage for employees working for any employer in the county, currently under federal and state law set at $7.25, to $8.40 on July 1, 2014; to $9.55 on July 1, 2015; to $10.25 on July 1, 2016; and to $11.50 on July 1, 2017. However, the law exempts individuals under the age of 19 who are employed not more than twenty hours in a week. It also provides for tipped employees to receive a minimum wage of at least half the applicable county minimum wage.
The Montgomery County law increases the minimum wage for employees working in the county for the county or for non-governmental employers with two or more employees in the County, also currently under federal and state law set at $7.25, to $8.40 on October 1, 2014; to $9.55 on October 1, 2015; to $10.75 on October 1, 2016; and to $11.50 on October 1, 2017. As in Prince George’s County, the law exempts individuals under the age of 19 who are employed not more than twenty hours in a week. However, it allows tipped employees to be paid the same minimum as under state law, currently $3.63 (half the state/federal minimum wage).
In addition, there are bills currently pending in the Maryland legislature that would increase the state-wide minimum wage, and efforts are underway or have already passed to increase the minimum in other states.