Blog · Payroll Management
Maryland Minimum Wage 2026: What Employers Must Know
The Maryland minimum wage in 2026 is $15.00 per hour, double the federal minimum wage of $7.25, according to the U.S. Department of Labor.
Maryland employers also navigate the state's FAMLI paid family and medical leave program alongside standard wage and hour rules. This guide covers the current rate, overtime rules, and what Maryland employers need for payroll compliance in 2026.
Maryland Minimum Wage vs. Federal Minimum Wage
| Jurisdiction | 2026 Minimum Wage |
|---|---|
| Maryland | $15.00/hour |
| Federal (FLSA) | $7.25/hour |
Maryland employers must pay the higher of the two rates. Since Maryland's state minimum exceeds the federal rate, $15.00 per hour applies to covered employees statewide.
Overtime Rules in Maryland
Maryland calculates overtime on a weekly basis: nonexempt employees are owed 1.5 times their regular rate for hours worked over 40 in a workweek. There is no daily overtime requirement under Maryland law.
Paid Sick Leave and the FAMLI Program
Maryland requires paid sick leave for eligible employees. Separately, Maryland has enacted a state FAMLI paid family and medical leave program that is currently phasing in. Because FAMLI contribution rates and benefit start dates have been adjusted since the program was enacted, employers should confirm the current implementation timeline directly with the Maryland labor department rather than relying on earlier announced dates.
Tipped Wages and Local Ordinances
Tipped employee pay rules and any county-level wage ordinances can affect the total amount employees must be paid. Because these rules change and vary by locality, employers should confirm current tipped-wage credit amounts and local requirements at the Department of Labor state contacts page.
What This Means for Payroll Compliance
Maryland payroll compliance means tracking the state minimum wage, overtime, paid sick leave accrual, and the phasing-in FAMLI program at the same time. A missed FAMLI contribution deadline or an incorrect sick leave accrual can create real liability.
BEG's managed payroll service builds Maryland's wage floor, overtime rules, and FAMLI and sick leave tracking directly into your payroll configuration, so a changing implementation timeline does not become your problem to monitor.
Maryland Payroll, Handled.
BEG manages payroll at $25-$45 per employee per month, all-inclusive. Get an instant cost comparison for your Maryland business.
Learn more about managed payroll in Maryland or HR outsourcing in Maryland to see how BEG supports compliance beyond the pay run.
Frequently Asked Questions
What is the minimum wage in Maryland in 2026?
The Maryland minimum wage is $15.00 per hour in 2026, well above the federal minimum wage of $7.25.
Does Maryland require overtime pay?
Yes. Maryland calculates overtime on a weekly basis, requiring 1.5 times the regular rate for hours worked over 40 in a workweek.
What is the Maryland FAMLI program?
FAMLI is Maryland state paid family and medical leave program. It is enacted and phasing in, and specific contribution rates and benefit start dates have been subject to change, so employers should confirm current dates directly with the state.
Does Maryland require paid sick leave?
Yes. Maryland requires paid sick leave for eligible employees, separate from the FAMLI paid family and medical leave program. Employers should track both obligations independently in payroll.
How does BEG help with Maryland payroll compliance?
BEG manages payroll at $25-$45 PEPM, all-inclusive, covering Maryland wage compliance, overtime, and FAMLI and sick leave tracking as part of a flat monthly rate.
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries. BEG manages payroll at $25-$45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
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