Montgomery County's Tiered Minimum Wage rules apply to all employers.
Montgomery County, Maryland implements a tiered minimum wage structure that adjusts annually, applying different rates based on an employer's size. This policy supersedes the statewide minimum wage for covered employers and workers, requiring careful classification and consistent application. All employers with employees working in Montgomery County must adhere to the relevant tier, with a minimum of 80 hours per year worked in the county triggering coverage.
Montgomery County Tiered Wage
Routes MoCo workers to size-tiered wage: $16.70 large (51+), $15.50 mid-size (11-50), $15.00 small (1-10). 80-hour-per-year coverage threshold.
What those rules do as a Maryland shift is created.
Teambridge automatically applies the correct Montgomery County minimum wage tier based on employer size and worker location, ensuring compliance without manual intervention. This prevents underpayment and reduces the risk of wage disputes.
Enforces correct hourly rate
When a shift is scheduled in Montgomery County, Teambridge identifies the employer's size tier and applies the corresponding minimum wage rate automatically, overriding the statewide minimum if applicable. This prevents scheduling a worker below the legally required local minimum.
Flags insufficient earnings
For employees whose primary work location is outside Montgomery County but occasionally work within it, Teambridge tracks hours worked in MoCo. If an employee is paid below the Montgomery County tier rate for these hours, the system flags potential underpayment issues, particularly if they cross the 80-hour annual threshold.
Reduces misclassification risk
By accurately applying tiered wages based on employer size and work location, Teambridge helps employers avoid misclassifying their wage obligations. This proactive approach minimizes exposure to penalties and back-pay claims associated with non-compliance with local wage ordinances.
Compliance, on autopilot.
See how Teambridge eliminates compliance risk and saves you time.
Montgomery County mandates a tiered minimum wage based on employer size.
Montgomery County's minimum wage law requires employers to pay employees working within the county at a rate higher than the statewide minimum, with the exact rate dependent on the employer's number of employees.
Montgomery County Code, Chapter 27, Article I, Section 27-26(a)
"An employer that employs at least one employee in the County must pay to each employee for work performed in the County a wage of not less than the County minimum wage rate."
Montgomery County Regulation 31-15AM, Section 4.A
"A business with 51 or more employees must pay a minimum wage of $16.70 per hour (effective July 1, 2024). A business with 11-50 employees must pay a minimum wage of $15.50 per hour (effective July 1, 2024). A business with 1-10 employees must pay a minimum wage of $15.00 per hour (effective July 1, 2024)."
Employer Tiers and Rates
The Montgomery County minimum wage is structured into three employer tiers, with rates adjusting annually on July 1st. For 2026, the rates are as follows:
- Large Employers (51 or more employees): $16.70 per hour. This tier includes businesses that are part of a larger chain or franchise with a combined total of 51 or more employees, regardless of how many work specifically in Montgomery County.
- Mid-Size Employers (11 to 50 employees): $15.50 per hour. This tier applies to businesses with between 11 and 50 employees overall.
- Small Employers (1 to 10 employees): $15.00 per hour. This tier applies to businesses with 10 or fewer employees overall.
The employee count is based on the average number of employees per week during the preceding calendar year.
Coverage Threshold and Exemptions
An employee is covered by the Montgomery County minimum wage if they perform at least 80 hours of work within the geographical boundaries of Montgomery County in a calendar year. This threshold ensures that even employees who primarily work outside the county are covered for hours worked within it.
Certain exemptions exist, consistent with federal and state minimum wage laws, including but not limited to:
- Employees under 18 years of age working less than 20 hours per week.
- Certain agricultural workers.
- Individuals employed as bona fide executive, administrative, or professional employees who meet specific duties and salary tests.
It is crucial for employers to accurately track employee hours by location to ensure compliance with the correct tiered rate for all work performed in Montgomery County.
Teambridge ensures Montgomery County's tiered wage is applied precisely.
With Teambridge, navigating Montgomery County's tiered minimum wage becomes effortless. Our system integrates employer size and worker location data to automate compliance, protecting you from potential penalties and administrative burden.
Set your employer size once.
Upon setup, simply designate your employer size (Large, Mid-Size, or Small) within Teambridge. This classification then automatically dictates the base minimum wage rate applied to all your employees working in Montgomery County.
Location-aware wage assignment.
Teambridge uses geo-fencing to identify shifts worked within Montgomery County. For these shifts, the system automatically applies your pre-configured tiered minimum wage, ensuring that even if the statewide minimum is lower, the correct local rate is paid.
Automated coverage monitoring.
For employees who occasionally work in Montgomery County, Teambridge tracks their cumulative hours within the county. Once the 80-hour annual threshold is met, the system ensures all subsequent hours worked in MoCo are compensated at the appropriate tiered rate, flagging any discrepancies.
Comprehensive compliance records.
Every wage calculation and application is logged, providing a transparent and immutable audit trail. Generate reports easily to demonstrate compliance with Montgomery County's tiered wage requirements during audits or in response to inquiries.
People also ask.
What are the current Montgomery County minimum wage rates?
As of July 1, 2024, the rates are: $16.70/hour for large employers (51+ employees), $15.50/hour for mid-size employers (11-50 employees), and $15.00/hour for small employers (1-10 employees).
How is "employer size" determined for the tiered wage?
Employer size is determined by the average number of employees per week during the preceding calendar year. This includes all employees, not just those working in Montgomery County. For chains or franchises, the total number of employees across all locations is considered.
Does the Montgomery County minimum wage apply to all employees?
It applies to any employee who performs at least 80 hours of work within Montgomery County in a calendar year, subject to certain exemptions. These exemptions generally align with those under federal and state minimum wage laws, such as bona fide executive, administrative, or professional employees, and certain individuals under 18 working limited hours.
What happens if an employee works in Montgomery County but the employer is based elsewhere?
If an employee performs 80 or more hours of work within Montgomery County in a calendar year, the employer must pay the Montgomery County tiered minimum wage for all hours worked in the county, regardless of where the employer is headquartered.
When do the Montgomery County minimum wage rates change?
The minimum wage rates in Montgomery County are adjusted annually on July 1st. These adjustments are based on the Consumer Price Index (CPI) for urban wage earners and clerical workers (CPI-W) for the Washington-Baltimore metropolitan area.
Are there penalties for non-compliance with the Montgomery County tiered wage?
Yes, employers found in violation may be subject to administrative penalties, orders for back wages, and civil litigation. Maryland's Wage Payment and Collection Law (WPCL) allows for treble damages for unpaid wages, and the Healthy Working Families Act (HWFA) includes separate penalties of three times the hourly wage per violation.