Bill > HB1400

This bill introduces several key changes to Maryland's labor and tax laws, focusing on service fees, minimum wage, and tip credits. First, it establishes consumer protection measures for food service facilities, requiring them to prominently disclose the amount, purpose, and distribution of any service fees to customers before they place an order. The bill gradually increases the state minimum wage, reaching $15.00 per hour starting January 1, 2024, then rising to $17.00 per hour in 2027, $18.50 per hour in 2028, and $20.00 per hour beginning July 1, 2028. Importantly, the bill phases out the tip credit system, which allows employers to count tips towards meeting minimum wage requirements. Starting July 1, 2028, employers will no longer be able to use tip credits and must pay tipped employees the full state minimum wage. The bill also creates a new tax subtraction for "qualified tips" received by workers in tip-based industries 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.

Business and Industry

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1400?ys=2025RS