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