Maryland Labor Laws 2026: Wage, Overtime, Sick Leave, and Pay

Maryland regulates more of the employment relationship than most states. The Maryland Department of Labor, Division of Labor and Industry, enforces the Wage and Hour Law, the Wage Payment and Collection Law, the Healthy Working Families Act, the Healthy Retail Employee Act, the Wage Range Transparency law, and the child labor statute. Montgomery, Howard, and Prince George's counties add their own minimum wages, and a state paid family and medical leave program is being phased in. This guide covers each rule with the Department's own wording where it is available.

Minimum Wage in Maryland

Maryland's minimum wage is $15.00 per hour statewide. The Department's wage and hour facts page lists the county rates that apply on top of it: Howard County $16.00 for all employers; Montgomery County $18.00 for large employers, $16.50 for mid-sized, and $15.95 for small employers as of July 1, 2026; and Prince George's County $15.30. Employees under 18 may be paid 85 percent of the applicable rate, and tipped employees receive a cash wage of $3.63 with a tip credit of up to $11.37.

See the full Maryland minimum wage guide for the county thresholds, the youth rate, and the tipped rules. The minimum wage by state table shows Maryland among the $15 states.

Overtime Rules

Maryland's Wage and Hour Law requires 1.5 times the regular rate for hours over 40 in a workweek, with two industry exceptions the Department lists: bowling alleys and non-hospital residential care facilities for the sick, aged, or disabled owe overtime only after 48 hours, and agricultural workers after 60 hours. Certain employees are exempt from state overtime entirely, including some in amusement and recreation, motor carriers regulated federally, and taxicab drivers. There is no daily overtime.

At the state minimum, a 45-hour week pays $600.00 for the first 40 hours plus $112.50 for 5 overtime hours at $22.50, a total of $712.50; in Montgomery County the county rate replaces $15.00. The overtime calculator handles other rates, and the guide to overtime pay laws by state covers the federal framework.

Meal and Rest Breaks

Maryland requires breaks only for retail employees and minors. The Healthy Retail Employee Act applies to retail establishments with 50 or more employees: a 15-minute non-working shift break for shifts of 4 to 6 consecutive hours, a 30-minute break for shifts over 6 hours, and an additional 15 minutes for every additional 4 consecutive hours after 8. Shifts under 4 hours require no break, and a written waiver is allowed in limited circumstances. Other adult employees have no state break entitlement, and federal rules govern any break an employer offers.

Situation	Maryland rule
Retail, 50+ employees, shift of 4 to 6 hours	15-minute non-working break
Retail, 50+ employees, shift over 6 hours	30-minute non-working break
Retail, 50+ employees, shift over 8 hours	Additional 15 minutes per additional 4 hours
All other adult employees	No state requirement; short breaks are paid when offered; duty-free meal periods of 30 minutes or more may be unpaid
Minors under 18	30-minute non-working period after every 5 consecutive hours

Compare the states in our guide to rest and meal break laws by state, and use the break time calculator to check paid hours on a retail shift.

Paid Sick Leave and Other Leave

The Healthy Working Families Act requires earned sick and safe leave. The Department's FAQ: "Employers who employ 15 or more employees are required to provide paid earned safe and sick leave. Employers with 14 or fewer employees are required to provide unpaid earned sick and safe leave." Leave accrues at one hour for every 30 hours worked, up to 40 hours a year; employees may use up to 64 hours in a year and carry over up to 40 hours, and employers that front-load 40 hours need not allow carryover. New employees may be required to wait 106 days before using leave. Employees who regularly work under 12 hours a week, certain agricultural and temporary workers, and some independent contractors are excluded.

Leave type	Maryland rule
Earned sick and safe leave	15+ employees paid, 14 or fewer unpaid; 1 hour per 30 worked; 40 hours accrued a year; 64 hours use; 40 hours carryover; 106-day wait allowed
Paid family and medical leave (FAMLI)	State program under the Time to Care Act; payroll contributions and benefits have been delayed by the Legislature, with contributions scheduled to begin January 1, 2027 and benefits January 2028; confirm the current dates with the Department
Parental leave (state)	Employers with 15 to 49 employees must provide up to 6 weeks of unpaid parental leave
Jury duty	Job protected; no pay requirement
Voting	Up to 2 hours of paid leave if the employee lacks 2 consecutive non-work hours while polls are open
Military leave	Federal USERRA and state protections
Deployment leave	One day of unpaid leave when an immediate family member deploys, for employers with 50 or more employees

Montgomery County has its own earned sick and safe leave law with broader coverage. Our guides to paid sick leave laws by state and jury duty laws cover the comparisons.

PTO Payout and Final Paychecks

The Wage Payment and Collection Law requires an employer to pay a departing employee "all wages due for work that the employee performed before the termination of employment, on or before the day on which the employee would have been paid the wages if the employment had not terminated." The rule is the same for resignations and discharges.

Accrued vacation is paid at separation unless the employer had a written policy, communicated at hiring, stating that unused leave is forfeited. The Department's termination pay guide explains that without such a policy, the employee is entitled to the cash value of accrued, unused leave. A clear written policy is therefore the deciding document. The PTO payout laws by state guide lists Maryland as a payout-unless-policy state.

Pay frequency: employers must pay at least once every two weeks or twice a month. Since October 1, 2024, pay statements must show the employer's name and contact details, the pay period dates, hours worked (for non-exempt employees), rates, gross and net pay, and itemized deductions.

Exempt vs Non-Exempt Employees

Maryland applies the federal white-collar exemptions and the $684 per week salary threshold; it has no higher state level. The state law's own exemption list (administrative, executive, and professional employees, plus specific occupations such as outside salespeople and certain drivers) largely mirrors the FLSA. The county minimum wages apply to non-exempt employees working in those counties regardless of where the employer is based. See exempt vs non-exempt employees and the FLSA exemption flowchart.

Child Labor Rules

"Work permits are required for all minors under the age of 18 to work in the State of Maryland," the Department states, and a new permit is needed for each employer. Minors under 14 may not work outside limited exemptions.

Age group	School in session	School not in session	Hours of the day
14 and 15	3 hours a day, 18 hours a week	8 hours a day, 40 hours a week	7 a.m. to 7 p.m.; 9 p.m. from June 1 through Labor Day
16 and 17	No more than 12 hours combined school and work in a day; at least 8 consecutive non-work, non-school hours in every 24	Same	No fixed curfew beyond the 8-hour rest rule

All minors must receive a 30-minute non-working period after every 5 consecutive hours. Hazardous occupations are barred for all minors under 18, with additional restrictions under 16. The federal child labor laws guide covers the hazardous list.

Other Maryland Employment Rules

• Wage range transparency. Since October 1, 2024, every public or internal job posting must state a good-faith minimum and maximum wage, a general description of benefits, and any other compensation; records must be kept three years, and penalties run from a compliance order to $300 and then $600 per affected person.
• Salary history. Employers may not ask applicants about wage history and must provide the wage range on request.
• Non-compete agreements. Banned for employees earning at or below 150 percent of the state minimum wage, and restricted for certain healthcare and veterinary workers since 2025.
• Local minimum wages and sick leave. Montgomery, Howard, and Prince George's counties set minimum wages; Montgomery County also has its own sick and safe leave law.
• Drug testing. Testing is permitted under Health-General 17-214, which requires a certified lab and written notice of a positive result.
• Equal pay. The Equal Pay for Equal Work law prohibits pay differences based on sex or gender identity for comparable work and protects wage discussions.

Hiring, Termination, and Record-Keeping

Maryland is an at-will state. The state Fair Employment Practices Act applies to employers with 15 or more employees (and to employers of any size for harassment claims) and prohibits discrimination based on race, color, religion, sex, age, national origin, marital status, sexual orientation, gender identity, genetic information, and disability, enforced by the Maryland Commission on Civil Rights.

Required postings include the Maryland minimum wage and overtime notice, the Healthy Working Families Act notice, the Healthy Retail Employee Act notice for covered retailers, the wage range transparency notice, and the child labor poster, with the federal set. The Wage and Hour Law requires payroll and time records for three years, and the sick leave law requires records of accrual and use. The one-hour-per-30 accrual, the retail break schedule, and the county rates all depend on accurate daily hours; a written timekeeping policy and a time card calculator or automatic time tracking keep the records complete.

Frequently Asked Questions

What is the minimum wage in Maryland in 2026? $15.00 per hour statewide, with higher rates in Howard County ($16.00), Prince George's County ($15.30), and Montgomery County ($18.00, $16.50, or $15.95 by employer size). Tipped employees receive $3.63 in cash plus tips.

Does Maryland require paid sick leave? Yes. Employers with 15 or more employees must provide paid earned sick and safe leave at one hour per 30 hours worked, up to 40 hours accrued and 64 hours used per year. Smaller employers provide it unpaid.

Are lunch breaks required in Maryland? Only for retail employees at establishments with 50 or more employees (15 to 30 minutes depending on shift length) and for minors (30 minutes per 5 hours). Other employers are not required to provide breaks.

When is a final paycheck due in Maryland? On or before the day the employee would have been paid had employment continued, whether the employee quit or was fired.

Is unused vacation paid out in Maryland? Yes, unless the employer had a written policy communicated at hiring that unused leave is forfeited.

Do Maryland job postings have to include a salary range? Yes. Since October 1, 2024, postings must include a good-faith wage range, a description of benefits, and any other compensation.

Does Maryland have daily overtime? No. Overtime applies after 40 hours in a week, or after 48 or 60 hours for the industries listed above.

When does Maryland's paid family leave start? The FAMLI program has been delayed; the Department's current schedule has contributions starting January 1, 2027 and benefits in 2028. Confirm the dates with the Department before planning payroll.

Sources

• Maryland Department of Labor: wage and hour facts
• Maryland Department of Labor: Healthy Working Families Act FAQs
• Maryland Department of Labor: employment of minors
• Maryland Department of Labor: wage range transparency FAQs
• Maryland Guide to Wage Payment and Employment Standards: termination pay
• US Department of Labor: state minimum wage laws
• US Department of Labor: state meal period requirements