Montgomery County and D.C. Minimum Wage Rates Increase

Employment Law

Montgomery County and D.C. Minimum Wage Rates Increase

Jul 6, 2018 | Employment Law

Montgomery County, Maryland

Effective July 1, 2018, the minimum wage payable by employers in Montgomery County, Maryland, increased to $12.25 per hour, from the previous minimum wage rate of $11.50 per hour for large employers (those with 51 or more employees in the county). For mid-size employers (11 and 50 employees) and small employers (10 or fewer employees) the hourly minimum wage increased to $12.00. The minimum wage rate increases are part of a bill that was passed last year by the Montgomery County Council that will ultimately result in the minimum hourly wage in the county rising to $15.00 as of July 1, 2021 for large employers, July 1, 2023, for mid-size employers, and July 1, 2024 for small employers.

District of Columbia

Beginning July 1, 2018, the minimum wage rate for employers in the District of Columbia increased to $13.25 per hour, up from the previous hourly rate of $12.50. The new hourly minimum wage is applicable to all workers in in the District of Columbia, irrespective of the size of the employer. The minimum wage increase, which was passed as part of the Fair Shot Minimum Wage Amendment Act of 2016, will progressively increase the minimum wage rate in the District of Columbia to $15.00 per hour, effective July 1, 2020, with yearly increases beginning in 2021 tied to the Consumer Price Index.

In Virginia, the current minimum wage rate is $7.25 per hour, which is the same as the current federal minimum wage rate under the Fair Labor Standards Act.

What Do These Changes Mean for You?

With local minimum wage increases in effect and more minimum pay raises scheduled to follow, what do you plan to do to account for your company’s increased labor costs? Surveys suggest that many U.S. businesses have adjusted their business practices to keep labor costs under control, or increase revenue as an offset, in the following ways:

  • Curtailing the amount of employee overtime worked;
  • Hiring more part-time workers;
  • Spreading entry-level, minimum wage work among other higher level employees;
  • Increasing automation to reduce the amount of minimum wage labor required; and
  • Passing the increased labor costs to consumers by raising the prices of goods and services.

If you have any questions about the D.C. or Montgomery County minimum wage increases, or any other wage related questions, please consult the Bean, Kinney & Korman attorney with whom you regularly work.

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