Maryland “Living Wage” Law

A 2007 Maryland law requires certain employers to pay you what is called a “living wage”. This law changes the minimum wage law for special situations where your employer has a contract with the state of Maryland.

As of 2007, the amount of the “living wage” depends on the county where you actually work. You are paid more if you work in an urban area.

• $11.30 an hour in Montgomery County, Prince George’s County, Howard County, Anne Arundel County, Baltimore County and Baltimore City; and
• $8.50 per hour in all other areas in the State of Maryland.

Who is covered?
You are covered if your employer has a state government contract and fits into certain categories. (There are some exceptions.)

Your employer will be required to pay you a living wage if you work for a company

• with a contract with the state of Maryland (contractor or subcontractor);
• the company has a state contract for services valued at $100,000 or more; and
• you work on the work covered in the contract.

Who is not covered?
Even if your employer has a state contract for $100,000 or more, you are not covered if any of the following are true:

• you are under the age of 17, or
• you will work less than 13 consecutive weeks for the duration of the contract, or
• you spend less than half of your normal work schedule doing work required by the contract, or
• your employer has fewer than 10 employees working on a contract for less than $500,000, or
• if the living wage requirement conflicts with the requirements of a federal program, or
• more than half of the contracted work is not performed in Maryland, or
• your employer is a public service company or a nonprofit organization, or
• your employer provides you with health care insurance benefits or contributes to an employee deferred compensation plan. (If this is true then the living wage will be reduced to reflect these types of contributions

How do I find our if my employer has an state contract (and how much the contract is)?

For more information regarding the living wage or to report a violation contact: The Maryland Commissioner of Labor and Industry  phone: (410) 767-2357 email: dli@dllr.state.md.us.

Will the “living wage be increased?
The living wage will be reviewed every year by the State of Maryland and may be adjusted depending on the cost of living in the Washington-Baltimore metropolitan area.