(650) 332-8623Maryland Labor Laws 2026: A Complete Guide to Wages, Breaks, Overtime, and More
Maryland labor laws 2026: minimum wage, overtime, paid family leave, child labor rules, and compliance essentials for employers and contractors.
What’s new in 2026?
Maryland Meals and Breaks
15 – 30 MinutesRetail Shift Breaks
Retail employers with 50+ employees are required to provide:
- A 15-minute break for shifts lasting 4-6 hours.
- A 30-minute break for shifts longer than 6 hours.
5 – 20 MinutesShort Breaks
Maryland law does not require adult employees to have meal breaks.
- Short breaks (5 to 20 minutes) are considered part of a workday and must be paid.
- A break of at least 30 minutes can be unpaid, provided the employee is fully relieved of duties.
Maryland Leave and Paid Time Off (PTO)
Under federal law, employees are entitled to 12 weeks of unpaid leave for personal or family medical reasons.
In Maryland, starting July 1, 2026, a new paid family and medical leave system will allow workers to take up to 12 weeks of paid leave, with benefits of up to $1,000 per week. Payroll deductions to fund this benefit will begin on July 1, 2025.
HB 102, signed May 6, 2025, pushed the FAMLI contribution start to January 1, 2027. Benefits become available between January 1, 2027 and January 3, 2028 (Source: paidleave.maryland.gov)
The contribution rate is 0.90% of covered wages for the initial pre-funding period only. The Secretary of Labor will set the final ongoing rate by November 1, 2026.
Do not configure payroll software with 0.90% as a permanent figure.
Average weekly wages will be calculated using an anchor date — defined as the earlier of the date a FAMLI application is completed or the date leave begins. This anchors the wage calculation to a specific point in time.
As of October 1, 2025, FAMLI protections expanded to include caregivers for members of the Uniformed Services, including the NOAA Commissioned Officer Corps and the U.S. Public Health Service Commissioned Corps.
Maryland’s Healthy Working Families Act mandates that employers with 15 or more employees must provide paid sick leave, accruing at the rate of 1 hour for every 30 hours worked.
Employers with fewer than 15 employees are required to provide unpaid sick leave.
Maryland law does not require employers to provide paid or unpaid vacation leave. However, employers can establish their own vacation leave policies according to company rules or contracts.
The federal Family and Medical Leave Act (FMLA) allows up to 12 weeks of unpaid leave for maternity and paternity purposes.
Maryland’s Parental Leave Act provides up to 6 weeks of unpaid leave for employers with 15 to 49 employees, specifically for the birth or adoption of a child.
SB 785 (effective October 1, 2025) removed a compliance overlap for larger employers. Before this law, employers with 50 or more workers had to comply with both federal FMLA and the Maryland Parental Leave Act. SB 785 excludes any FMLA-covered employer from state Parental Leave Act obligations.
If your construction company has 50 or more employees, federal FMLA now covers you exclusively. Employers with 15 to 49 workers not covered by FMLA remain subject to the Maryland Parental Leave Act and must provide up to 6 weeks of unpaid parental leave.
Employers in Maryland are required to offer the same leave for adoption as they do for the birth of a child, ensuring equal treatment for adoptive parents.
While there is no state-mandated bereavement leave in Maryland, the Maryland Flexible Leave Act allows employees to use accrued leave to grieve the death of an immediate family member.
Maryland employers are required to provide unpaid leave for employees called to serve on jury duty. Employers are prohibited from penalizing employees for fulfilling their civic duty.
The federal Uniformed Services Employment and Reemployment Rights Act (USERRA) protects the employment rights of military members.
In Maryland, National Guard and Maryland Defense Force members are entitled to 15 days of paid leave for military training or deployment. Additionally, employers with 50 or more employees must provide leave to employees whose family members are deployed on active duty outside the United States.
Maryland law entitles employees to up to 2 hours of paid leave to vote if they do not have two consecutive off-duty hours while polls are open.
Employees, as well as their immediate family members, who are victims of domestic violence, sexual assault, or stalking, may take leave to receive medical attention, seek protective services, attend legal proceedings, or relocate temporarily for safety reasons.
State employees are entitled to up to 30 days of paid leave for organ donation and up to 7 days for bone marrow donation. Private sector employees are granted up to 60 days of unpaid leave for organ donation and 30 days for bone marrow donation.
State employees involved in emergency response organizations, such as the Civil Air Patrol or volunteer fire departments, can take up to 15 days of leave per year during emergencies declared by the Governor, provided they have the appropriate certification from their organization.
Maryland Wages and Overtime
$15.00/hourMinimum Wage
Maryland’s minimum wage is $15.50 per hour as of January 1, 2026. It increases to $16.00 per hour on July 1, 2026.
Update your crew pay rates and time tracking system before both deadlines. Any employer still paying $15.00 per hour is out of compliance as of January 1, 2026.
1.5x HourlyOvertime Rate
Most employees earn 1.5 times their regular rate for hours over 40 in a week. This applies to construction laborers, trades workers, and most non-exempt staff. No Maryland provision overrides the federal 40-hour threshold for standard employers.
$3.63/hourTipped Minimum Wage
Tipped employees earning more than $30 per month in tips must receive at least $3.63 per hour from the employer. Total compensation — tips plus cash wage — must reach the statewide minimum. If tips fall short, the employer covers the gap.
2x MonthlyPay Frequency
Maryland employers must pay workers at least twice per month. This applies to all construction payrolls, including certified payroll on public works jobs. The Maryland Wage Payment and Collection Law governs payment timing.
Three jurisdictions set local rates above the state minimum. When a local rate is higher, pay the local rate. When the state rate is higher, state preemption requires the higher rate.
Montgomery county minimum wage
Current rates as of July 1, 2025:
- 51 or more employees: $17.65 per hour.
- 11 to 50 employees: $16.00 per hour.
- 10 or fewer employees: $15.50 per hour.
If your concrete crew of 22 works a Montgomery County school project, the applicable rate is $16.00 per hour. Count all Maryland employees to determine the correct tier — not just workers on that specific jobsite.
Howard county minimum wage
Employers with 15 or more employees have paid $16.00 per hour since January 1, 2025. Employers with fewer than 15 workers pay $15.50 per hour starting January 1, 2026. All Howard County employers pay $16.00 per hour starting July 1, 2026.
The January 1, 2026 small-employer county rate of $15.50 matches the new state minimum. From January 1 through June 30, 2026, both state and county require $15.50. Starting July 1, the county rate of $16.00 matches the state floor — both reach $16.00 on the same date.
Prince George’s county minimum wage
The Maryland Fair Wage Act sets a statewide floor of $15.50 as of January 1, 2026. State law preempts the lower county rate.
Prince George’s County employers must pay $15.50 per hour through June 30, 2026, then $16.00 from July 1, 2026 onward. There are no employer size tiers in Prince George’s County. Workers 18 and under working fewer than 20 hours per week are exempt from the county ordinance.
Source: Maryland Department of Labor
In Maryland, apart from tipped employees, the following workers can receive sub-minimum wages under specific conditions:
- Employees Under 20: Can be paid $4.25 per hour for the first 90 days of employment.
- Minors (16-17 years old): May be paid 85% of the minimum wage (currently $12.75 per hour).
- Full-Time Students: Can earn $10.63 per hour if they work no more than 20 hours per week.
- Workers with Disabilities: Eligible for sub-minimum wages under the Fair Labor Standards Act (FLSA).
- Student Learners: In vocational programs, they may receive sub-minimum wages.
These wage structures aim to support employment opportunities for young workers and those in training programs, while ensuring compliance with state and federal laws.
Maryland tracks the federal FLSA white-collar rules for Maryland overtime exemptions. The current salary threshold is $684 per week ($35,568 per year). Maryland does not set a separate state threshold above the federal floor.
The DOL’s 2024 rule that would have raised the threshold to $1,128 per week was vacated November 15, 2024. Source: Texas v. U.S. Dep’t of Labor, No. 4:24-CV-468-SDJ (E.D. Tex. Nov. 15, 2024)
Key exemptions for overtime under Maryland labor laws
Executive employees: Must earn at least $684 per week. Must manage an enterprise or department. Must direct two or more full-time employees and have authority over hiring and firing.
Administrative employees: Must earn at least $684 per week. Must perform non-manual tasks related to business operations. Must exercise actual discretion in day-to-day decisions.
Professional employees: Must earn at least $684 per week. Must work in a field requiring advanced knowledge. Licensed project engineers and certified architects are common examples.
Outside salespersons: Must primarily make sales outside the employer’s place of business. No salary threshold applies to this category.
Agricultural workers: Overtime is not required until hours exceed 60 in a week.
Employees over 62: Exempt from overtime if working fewer than 25 hours per week.
Service industry workers: Employees in establishments like bowling alleys may be exempt if working fewer than 48 hours per week.
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Maryland Prevailing Wages
$18.25General Laborer
General laborers in Maryland have the lowest prevailing wage rate, starting at $18.25 per hour, with additional fringe benefits totaling $24.39 per hour.
$50.04Elevator Construction Mechanic
Elevator Construction Mechanics have the highest prevailing wage rate in Maryland, with $50.04 per hour in wages and additional fringe benefits totaling $91.46 per hour.
The Maryland prevailing wage law requires contractors and subcontractors on public works projects valued at $250,000 or more to pay their employees the prevailing wage rate. This rate is determined by the Commissioner of Labor and Industry and is based on wage surveys and classification of workers by location and type of work.
Maryland’s law applies to state-funded construction, with wage determinations issued for each locality (23 counties and Baltimore City) and effective for one year. Employers must pay overtime for work exceeding 10 hours in a single day, 40 hours in a week, and work done on Sundays or legal holidays.
Maryland Prevailing Wage Resources
Maryland Child Labor Laws
< 14 Years
Laws in Maryland for children under 14
- Children under 14 are generally not allowed to work.
- Exceptions include special permits for work as models, performers, or entertainers.
14-15 Years
Laws in Maryland for children 14-15
- Requires a work permit for employment.
- Permitted to work:
- Non-school hours only.
- Up to 3 hours on a school day, 18 hours in a school week.
- Up to 8 hours on non-school days, 40 hours in non-school weeks.
- Between 7 a.m. and 7 p.m. (9 p.m. from June 1 to Labor Day).
- Must have a 30-minute break after working 5 consecutive hours.
16-17 Years
Laws in Maryland for children 16-17
- Requires a work permit for employment.
- Combined school and work hours cannot exceed 12 hours in a day.
- Must be allowed at least 8 consecutive hours of non-work, non-school time in each 24-hour period.
- Must have a 30-minute break after working 5 consecutive hours.
Other Essential Maryland Labor Laws
Health and Safety Standards in Maryland
In Maryland, employers must adhere to stringent health and safety regulations to ensure a safe working environment for all employees. The Maryland Occupational Safety and Health (MOSH) program enforces these standards, which are often more stringent than federal OSHA regulations.
In Maryland, employers must…
- Comply with Maryland Occupational Safety and Health (MOSH) regulations to ensure a safe work environment.
- Report workplace fatalities, serious injuries, or health hazards to MOSH within 8 hours for fatalities and within 24 hours for severe injuries (amputation, loss of an eye).
- Provide training and information about workplace hazards and safety protocols.
In Maryland, employees should…
- Follow safety practices and use protective equipment as directed.
- Report any workplace hazards or unsafe conditions to their employer or MOSH.
- Participate in safety training and adhere to MOSH standards for health and safety.
Report health and safety violations (unsafe working conditions) in Maryland to…
- Employees: File a Complaint with MOSH
- Employers: Maryland Department of Labor – MOSH
Hiring and/or Firing Employees in Maryland
Maryland is an “at-will” employment state, meaning employers or employees can terminate the employment relationship at any time, for any reason, except for illegal reasons. This offers flexibility but may create job insecurity for employees.
Maryland does not have right-to-work laws. In unionized workplaces, employees may be required to join a union or pay dues as a condition of employment, unlike right-to-work states.
Employers may conduct background checks compliant with the Fair Credit Reporting Act (FCRA). Drug testing is allowed, but policies must be clearly communicated and must consider medical marijuana accommodations for non-impaired employees.
Maryland law prohibits employment discrimination based on race, color, religion, sex, age, national origin, marital status, sexual orientation, gender identity, or disability. Complaints can be filed with the Maryland Commission on Civil Rights.
Anti-Discrimination Laws in Maryland
Maryland’s Fair Employment Practices Act (FEPA) covers employers with 15 or more employees. Employers in Maryland may not discriminate based on:
- Race, color, religion, or national origin.
- Sex, including gender identity and pregnancy.
- Age and marital status.
- Sexual orientation.
- Disability, including genetic information.
Maryland’s Equal Pay for Equal Work Law prohibits wage discrimination based on sexual orientation. Pay differences must rest on legitimate factors such as seniority or merit.
Wage range transparency and pay stub requirements
Both the Wage Range Transparency Act (SB 525) and Pay Stub Requirements (HB 385) have been in effect since October 1, 2024.
Every public and internal job posting must include: the wage range; a general benefits description; and any additional compensation such as overtime or bonuses. If a role is not posted, disclose the range before discussing pay with any applicant.
Pay stubs must include employer name, state-registered address, and phone; pay period dates; hours worked; applicable rates; and itemized gross and net pay. For Maryland wage transparency law purposes, multi-rate prevailing wage or union jobsites must list each rate separately.
Penalties: first violation is a compliance letter; subsequent violations are $300 to $600 per affected employee or applicant.
Maryland Worker Freedom Act
Effective April 28, 2026, the Maryland Worker Freedom Act prohibits employers from taking adverse action against workers who refuse mandatory meetings about religion or politics. Decisions about union membership are explicitly included as political matters.
Civil penalties reach $25,000 per violation. Standard compliance training is exempt. Review all onboarding materials and meeting policies.
Maryland noncompete law
As of July 1, 2025, noncompetes are banned for licensed healthcare providers earning $350,000 or less. Veterinary professionals are subject to a complete ban (effective June 1, 2024). Construction management staff and tradespeople are not covered.
If your company employs an occupational health nurse or site physician earning under $350,000, their agreement must comply with the healthcare noncompete ban.
Employee resignation or termination in Maryland
Maryland follows at-will employment. Either party may end the relationship at any time for any legal reason. If a worker believes termination violated anti-discrimination laws, they can file with the Maryland Commission on Civil Rights or seek legal counsel.
Unemployment benefits in Maryland
Workers qualify for unemployment if they:
- Are unemployed through no fault of their own — layoffs, not misconduct.
- Earned at least $1,176 in their highest-paid quarter during the base period.
- Are able, available, and actively seeking work.
Apply at Maryland’s BEACON Unemployment Insurance portal.
COBRA benefits in Maryland
Employers with 20 or more workers must offer COBRA continuation coverage. Employees pay up to 102% of the total premium (including a 2% administrative fee). Coverage lasts up to 18 months for job loss and up to 36 months for qualifying events like death or divorce.
Maryland’s Continuation of Coverage law applies to all group policies issued in Maryland, regardless of employer size. Small employers under 20 employees carry the same notification obligations as large employers.
Final paychecks in Maryland
Under the Maryland final paycheck law, separated employees receive their final paycheck on the next scheduled payday. This applies whether the worker quit or was terminated. The check must include all wages earned before separation, plus any accrued PTO if company policy requires it.
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Maryland Recordkeeping Requirements
1 Year
Employers must retain these documents for at least one year:
- Documentation of hours worked and wages paid to each employee.
- Records of job applications and resumes received from applicants.
- Copies of employee handbooks or policies provided to employees.
2 Years
Employers must retain these documents for at least two years:
- Detailed payroll records, including deductions and benefits information.
- Records of performance reviews and disciplinary actions.
- Documentation of employee training sessions and certifications.
3 Years
Employers must retain these documents for at least three years:
- Documentation related to hiring practices and EEO compliance.
- Records related to employee requests for FMLA leave.
- Documentation of any workers’ compensation claims filed by employees.
4 Years
Employers must retain these documents for at least four years:
- Payroll tax records, including W-2 forms and tax withholding information.
- Documentation related to workplace safety incidents and OSHA compliance.
- Information regarding employee health insurance coverage and claims.
Penalties for Maryland Wage Law Violations
Up to $600Wage Transparency Violations
Employers violating wage transparency requirements may receive a compliance letter for the first violation. Subsequent violations may result in fines of $300 to $600 per affected employee or applicant.
Up to $161,323Workplace Safety Violations
Civil penalties for violations of the Maryland Occupational Safety and Health (MOSH) standards can range from $11,162 to $16,131 for minor offenses, and up to $161,323 for willful or repeated violations.
Up to $20,000Worker Misclassification
Employers misclassifying employees may face a penalty of up to $5,000 per improperly classified employee. Penalties may double for repeat offenders or increase to $20,000 per employee for repeated violations.
Up to $10,000Contractor Misclassification
In the construction and landscaping industries, misclassifying workers as independent contractors can result in fines of up to $10,000 per violation.
Up to $16,550 per violationMOSH civil penalties
Effective July 15, 2025, HB 0244/CH104 empowers the Commissioner to adjust MOSH penalties by CPI annually.
As of the July 2025 adjustment: maximum penalty for willful or repeated violations is $165,514 per violation. Serious and other-than-serious violations carry a maximum of $16,550. Source: labor.maryland.gov/labor/mosh/
A willful safety violation on a busy construction site is now a six-figure exposure. Review your MOSH compliance posture before your next inspection.
In Maryland, labor law violations are investigated and addressed by the following:
- The Maryland Department of Labor handles wage, hour, employment standards, and workplace safety violations.
- The Office of Fair Practices – Maryland Department of Labor addresses discrimination, equal opportunity, and fair employment practices.
- The Maryland Joint Enforcement Task Force focuses on workplace fraud, including employee misclassification and enforcement of protective labor laws.
Further Details on Other Maryland Labor Laws
Here are the key updates to Maryland labor laws that will take effect in 2025:
Noncompete Prohibitions and Wage Thresholds
- Noncompete agreements are prohibited for healthcare workers and veterinary practitioners earning less than $350,000 per year.
- Duration of noncompete agreements is limited to 1 year, with geographic restrictions of 10 miles from the primary place of work.
- Aimed at reducing employment restrictions and promoting job mobility.
Posted Salary Ranges and Benefits Descriptions on Job Postings
- Employers must disclose salary ranges and benefits for all job postings.
- Applies to internal and external postings.
- Protects applicants and employees who inquire about wages from retaliation.
Pay Stub Information and Written Notice at Hiring
- Employers are required to provide written notice of pay rate, paydays, and benefits at hiring.
- Pay stubs must include this information in physical or digital format.
- Promotes transparency in compensation documentation.
Labor law compliance anchors construction crew management. Advance general contracting with job management for construction project manager workflows, including QuickBooks and Rippling integrations.
Looking for other state-specific labor and overtime laws? Check out these guides:
Managing Maryland labor laws compliance in construction
Tracking compliance across multiple county wage zones, a delayed FAMLI launch, and indexed MOSH penalties creates real operational risk for Maryland contractors. A foreman with one crew in Prince George’s County and another in Montgomery County is managing two different wage floors on the same day.
Workyard’s analysis of 280 contractor discovery calls found that nearly 1 in 3 construction businesses identify labor compliance, including overtime rules, union pay codes, and state wage laws, as a primary operational risk. Workyard is workforce management software especially built for construction businesses.
Discover how Workyard helps businesses maintain compliance while simultaneously boosting productivity. You can sign up for a free 14-day trial today to start improving your workflow at no cost.
Labor laws in Maryland govern minimum wages, overtime, break requirements, family and medical leave, child labor, anti-discrimination, and workplace safety. As of January 1, 2026, the statewide minimum wage is $15.50 per hour, rising to $16.00 on July 1, 2026. For construction employers, local wage variations in Montgomery, Howard, and Prince George’s counties add compliance layers beyond the state rate. MOSH enforces safety standards exclusively on private-sector worksites. File wage complaints with the Maryland Department of Labor.
Maryland law does not require breaks for adult employees outside of retail. In retail establishments with 50 or more workers, a 15-minute break applies to 4-to-6-hour shifts and a 30-minute break applies to shifts over 6 hours. For construction crews, there is no state-mandated break rule — but union agreements and federal safety standards may create additional obligations. Any break under 20 minutes that an employer does provide must be paid.
Under Maryland labor laws break rules, 15-minute breaks are required only in retail for employers with 50 or more workers, and only for 4-to-6-hour shifts. Private construction companies are not covered. Any break under 20 minutes that an employer does provide must be paid. Employers who voluntarily allow breaks cannot deduct them from compensable time unless the break is at least 30 minutes and the employee is fully relieved of all duties.
Yes. Maryland requires overtime at 1.5 times the regular rate for all hours over 40 per week. Most construction workers, laborers, and trades employees are non-exempt and must receive this rate. To qualify for the white-collar exemption, workers must earn at least $684 per week and meet specific duty tests. Agricultural workers are exempt until they exceed 60 hours per week.
Maryland law does not define a specific full-time threshold. Federal health insurance rules define full-time as 30 or more hours per week. Overtime obligations under FLSA and Maryland law start at 40 hours per week. For workers’ compensation and benefit eligibility, the specific threshold depends on your company policy or the applicable collective bargaining agreement.
No. Maryland does not require premium pay for holiday work. An employer whose crew works on a holiday pays the regular wage unless a contract or policy states otherwise. On prevailing wage jobs, verify the wage determination before scheduling holiday work — it may require holiday overtime.
Under HB 102, Maryland FAMLI contributions start January 1, 2027. The initial 0.90% rate applies only to the pre-funding period — it is a placeholder. The Secretary of Labor will publish the final ongoing rate by November 1, 2026. Do not treat 0.90% as permanent for payroll software configuration. Source: paidleave.maryland.gov.
Current 2026 rates:
- Montgomery county minimum wage 2026: $17.65/hr (51+ employees), $16.00/hr (11-50), $15.50/hr (10 or fewer) — effective July 1, 2025.
- Howard county minimum wage: $16.00/hr for 15+ employees (since January 1, 2025); $15.50/hr for fewer than 15 starting January 1, 2026; $16.00/hr for all employers starting July 1, 2026.
- Prince George’s county minimum wage 2026: Local CPI-adjusted rate was $15.30, but state preemption requires $15.50 through June 30, 2026, then $16.00 from July 1, 2026.
Maryland prevailing wage law applies to state-funded construction contracts of $250,000 or more. Rates vary by trade and county — the Commissioner issues annual determinations for all 23 counties and Baltimore City. Current sample rates: $18.25/hr (plus $24.39 fringe) for General Laborers. Always verify the current rate at the Maryland Department of Labor Prevailing Wage portal before submitting any public works bid.
Payroll records and hours-worked data: at least 2 years. Payroll tax records including W-2 forms: 4 years. Hiring records and EEO documentation: 3 years. Job applications and employee handbooks: 1 year. Source: Md. Code Ann., Lab. & Empl. § 3-428 and federal FLSA recordkeeping rules.
For construction employers, keep certified payroll records separately for each public works project for the duration of the contract plus at least 3 years.
