Media


06/30/16


Minimum Wage and Overtime Pay Laws: What Must an Employee be Paid?

By: Jonathan F. Lieberman ,Mary Craine Lombardo ,Eduardo S. Garcia

Media Type: Alert

With minimum wage rates increasing in Maryland and Montgomery County as of July 1, 2016, we provide the following summary of federal, state and local minimum wage rates.

The federal minimum wage, as of January 1, 2016, is $7.25 per hour. All U.S. employers must pay employees this or an equivalent rate. Many states and local jurisdictions have imposed higher minimum wage rates, obligating companies in those locales to pay the highest of the rates applicable. With regard to time and a half (“overtime”) pay, companies subject to the federal Fair Labor Standards Act (FLSA) must pay each employee time and a half for all hours worked over 40 in a given week. Here is a breakdown of applicable state and local laws in the D.C. metropolitan area.

Minimum Wage Map DC Metro

Minimum Wage in Maryland

 

The minimum wage in Maryland as of July 1, 2016 is $8.75 per hour. By law, this amount is set to increase to a maximum of $10.10 by July 2018. As of July 1, 2016, Montgomery County has a minimum wage of $10.75 and Prince George’s County requires a minimum wage of $9.55 per hour, with scheduled increases every July (Montgomery) and October (Prince George’s) through 2018 to a maximum of $11.50 per hour. Under the Maryland Wage and Hour Law (MWHL) and the Maryland Wage Payment and Collection Law (MWPCL), unless exempt from doing so, Maryland employers must pay each employee time and a half (“overtime”) for all hours worked over 40 in a given week. 

Minimum Wage in D.C.

 

As of July 1, 2016, the minimum wage in the District of Columbia is $11.50, and any increases thereafter will be indexed to inflation. Under overtime pay laws, such as the D.C. Minimum Wage Payment and Collection Law (DCWPCL) and the D.C Wage Theft Amendment Act of 2014, D.C. employers, unless exempt from doing so, must pay each employee time and a half for all hours worked over 40 in a given week.

Minimum Wage in Virginia

 

Holding steady at $7.25, Virginia’s minimum wage matches what is required under the federal Fair Labor Standards Act (FLSA). While Virginia does not have a state law that allows for private wage/hour lawsuits in the way that Maryland and D.C. do, most employers fall under the FLSA and, unless exempt, can be sued in state or federal courts in Virginia accordingly.


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