While 21 states are reportedly due for a minimum wage increase in 2018, Maryland and D.C. workers will receive a slight boost.
Residents of Maryland and D.C. will see a boost in minimum wage, but it will occur at different rates, depending on where you live. Maryland's minimum wage will pop to $10.10 -- an 85 cent increase -- and D.C. residents will see a rise in wages to $13.25 per hour -- a 75 cent boost. Unlike in some states where workers will see their increase as of January 1, 2018, both Maryland and D.C. workers will have to wait until July 1, 2018. As for federal minimum wages, the $7.25 hourly rate has held steadfast since 2009. However, certain state municipalities who want to raise the pay rates, locally, may submit their own proposals for enacting higher local minimum wage laws and ordinances like Montgomery County did for their residents in 2017.Tipping with Minimum Wage Increase
So how does tipping work in regards to these 2018 wage increases? Under federal law, the $7.25 an hour rate must still be paid by employers. However, as much as $5.12 of their minimum wage can be earned through tips, based on federal maximum tip credits.
For Maryland and D.C. workers, different laws apply. According to the Department of Labor, Maryland employees who are earning more than $30 a month in tips must earn the state minimum wage. Below is a breakdown of how wages and tips work for Maryland and D.C. workers (courtesy of Swipeclock.com):
Maryland
- Tips must at least equal Minimum Wage Rate of $8.75 hour.
- Employers must pay $5.12 per hour if tips wages are $3.63 hour
- Employers must pay tipped employees a minimum cash wage
- Minimum cash wage required under the federal Fair Labor Standards Act is $2.13 hour.
- Tip credit rate will increase to $9.36 on July 1, 2018
- Minimum cash rate will increase to $3.89
- Employers must pay $5.47 per hour if tips wages are $3.89 hour
- Employers must pay tipped employees a minimum cash wage
- Minimum cash wage required under the federal Fair Labor Standards Act is $2.13 hour.