Bill > HB1438

This bill modifies Maryland's labor laws regarding overtime pay exemptions for certain employees by establishing new criteria for administrative, executive, and professional workers. Specifically, the bill defines exempted employees as those compensated at least $1,128 per week starting July 1, 2025, with subsequent annual adjustments based on the Consumer Price Index (CPI) for the Washington-Baltimore metropolitan area. To qualify for the exemption, employees must meet specific duty requirements, such as performing non-manual work directly related to business operations, exercising independent judgment, managing a department or enterprise, directing other employees, or performing work requiring advanced knowledge or creative talent. The bill requires the Commissioner of Labor and Industry to calculate and announce the new compensation rate annually beginning March 1, 2026, with the rate remaining unchanged if there is no growth or a decline in the CPI. The law maintains existing exemptions for various types of workers, including those employed in camps, agricultural settings, family businesses, and specific industries. The changes will take effect on July 1, 2025, providing a clear framework for determining overtime pay exemptions based on compensation and job responsibilities.

Business and Industry

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1438?ys=2025RS