Maryland Employment Law Update – June 2018

State and County Minimum Wages

Effective July 1, 2018, the minimum wage rates in Maryland increase as follows:

• The state minimum wage rate increases to $10.10.
• The Montgomery County minimum wage rate will increase to $12.00 for employers with 50 or fewer employees and $12.25 for employers with 51 or more employees.

The Prince George County minimum wage increased on October 1, 2017 to $11.50 per hour.

Read about these wages

General Contractor Liability for Unpaid Wages

On May 26, 2018, Maryland Governor Larry Hogan signed legislation (H.B. 1539) making a general contractor (contractor) on a project for construction services jointly and severally liable for subcontractor violations of the state’s wage payment and collection law, regardless of whether the subcontractor is in a direct contractual relationship with the contractor. The law also requires a subcontractor to indemnify a contractor for any wages, damages, interest, penalties, and attorney’s fees owed as a result of the subcontractor’s violation, unless:

• Indemnification is provided for in a contract between the contractor and the subcontractor; or
• A violation arose due to a lack of prompt payment in accordance with the terms of the contract between the contractor and the subcontractor.

The law is effective October 1, 2018.

Read MD H.B. 1539