Bill > SB823

This bill introduces several key provisions related to wages, tips, and consumer protections for food service workers in Maryland. First, it establishes new transparency requirements for food service facilities regarding service fees, mandating that businesses must prominently disclose the amount, purpose, and whether the fee is paid directly to employees before customers place an order. The bill also progressively increases the state minimum wage, raising it to $15 per hour starting January 1, 2024, then to $17 per hour in 2027, $18.50 per hour in 2028, and finally $20 per hour beginning July 1, 2028. Notably, the legislation phases out the tip credit system, which allows employers to count tips toward minimum wage obligations, by reducing the tip credit amount in 2027 and 2028, and then completely eliminating it on July 1, 2028, requiring employers to pay the full minimum wage regardless of tips. Additionally, the bill creates a tax subtraction for "qualified tips" (tips received from unrelated parties) and provides a tax credit for employers equal to 50% of the difference between minimum wage and the previous tip credit amount. The bill is contingent on the passage of a related constitutional amendment and will take effect upon the Governor's proclamation that the amendment has been ratified by voters.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0823?ys=2025RS