Bill > HB1229

This bill establishes that every person has a fundamental right to be paid at least the state minimum wage, regardless of any tips they receive, and proposes this as an amendment to the Maryland Constitution. It also repeals certain exemptions from Maryland's Wage and Hour Law, meaning more workers will be covered by minimum wage protections. The bill outlines a phased increase in the state minimum wage, with specific rates set for various years leading up to $25.00 per hour by 2030, and subsequent adjustments tied to the Consumer Price Index (CPI), which measures inflation. For "small employers" (those with 14 or fewer employees), there are slightly different, but also increasing, minimum wage rates. Crucially, the bill eliminates the "tip credit" system for tipped employees by January 1, 2031, meaning employers will no longer be able to count a portion of tips towards meeting the minimum wage. Additionally, it introduces new regulations for "food service facilities" (restaurants and similar establishments) regarding the disclosure and distribution of "service fees," which are extra charges added to a customer's bill separate from menu prices and sales tax; these fees must be prominently disclosed and, with some exceptions for collective bargaining, must be distributed to the employees who directly provided the service. The bill also prohibits employers from retaliating against employees who exercise their rights under these labor laws. The constitutional amendment proposed in Section 2 will be put to a vote of the people in the November 2026 general election, and the other provisions of the bill will take effect if and when this amendment is ratified.

Government Affairs

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1229?ys=2026RS