Human Resource Blog

Federal Minimum Wage in Maryland

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Do you have to pay the minimum wage if you have less than 10 employees? Should part-time workers be paid the minimum wage? We are a Maryland company covered by the federal minimum wage.

To answer the second question first, no federal or state law permits employees to pay part-time workers less than the minimum wage.

Workers who are under 20 years old may legally be paid a lower wage under some conditions. Such workers may receive $4.25 an hour for the first 90 days on the job, compared to the current federal minimum wage of $5.85 an hour. But they must not be displacing an older worker.

There are some circumstances under which student-learners and disabled workers may also legally be paid less than the federal minimum wage rate.

To answer the first question, many factors influence whether a company is covered by the federal minimum wage laws. The number of employees a firm has on staff is just one of those factors.

The FLSA, or federal Fair Labor Standards Act, is the legislation guiding the minimum wage. The law applies to workers in any company with 2 or more workers, provided the firm does a minimum of $500,000 in business annually.

Currently the federal minimum wage is $5.85 per hour. On July 24, 2008, the federal minimum wage will increase to $6.55 per hour. Maryland is one of 12 states that pegs the state minimum wage at the same level as the federal minimum wage.

Hospitals and businesses that offer nursing or medical care for residents are all covered by the law, as are government agencies as well as all schools and preschools. Domestic workers (housekeepers, maids, cooks, and the like) must receive the minimum wage. So must full-time but not part-time babysitters.

In all, more than 130 million U.S. employees receive the coverage of the federal minimum wage law.

Employees are also covered if their work tasks involve interstate commerce on a regular basis. Factor workers making goods that will be sold out of state, for example, would be covered even if the firm they work for does less than $500,000 yearly. Even workers who make or take out-of-state phone calls regularly would be covered, as would those who sort, send, or receive packages and mail coming from out of state.

Some states have passed laws setting the minimum wage higher than the federal level. Under those conditions, almost all workers will be entitled to the state rate. JH