BALTIMORE -- State leaders plan to introduce legislation that would put a minimum wage increase on Maryland's 2026 ballot.

Maryland Delegate Adrian Boafo and Senator Cory McCray introduced the proposal, which includes gradually raising the minimum wage to $20 for tipped workers and making tips exempt from taxation.

If the legislation is passed, a constitutional amendment would be added to the November 2026 ballot, allowing Maryland voters to decide on the measure.

Maryland's minimum wage increased to $15 an hour on July 1, 2023. However, labor activists say the measure wasn't enough for workers who relied on tips.

The proposed legislation would also phase out Maryland's tipped wage of $3.63 per hour, requiring that tipped workers earn the full minimum wage plus tips.

One Fair Wage , a national coalition that has advocated for similar efforts, said the bill said the current wage no longer meets the needs of workers with the increasing costs of living. They also added that women and people of color, who are disproportionately represented in tipped professions, face significant financial insecurity under the current wage system.

According to OFW, the subminimum wage impacts more than 105,000 tipped workers - of which is 65% omen and 52% people of color.

This is not the first time state leaders and workforce advocates have moved to increase wages.

In 2023 , and 2024 state leaders made efforts to pass legislation that would require employers to pay tipped workers the state minimum wage - but they were unsuccessful.

Opponents of the bill say increasing the minimum wage would be a burden to small businesses .