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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.

September 25, 2017
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Minimum Wage Rate Increases

Last week, the Office of Federal Contract Compliance Programs (OFCCP) announced an increase in the minimum wage applicable to federal contractors for contracts that are covered by Executive Order 13658.  Effective January 1, 2018, the new hourly minimum wage rate will be $10.35, up from the current hourly rate of $10.20. The minimum hourly wage rate for tipped employees will increase to $7.25.

On February 24, Mama's Pizzeria and Restaurant of Copiague, New York entered into a settlement with the Department of Labor.  In the settlement, Mama's agreed to pay $780,000 in minimum wage and overtime compensation to 40 employees. Pizza.jpg 

Mama's was charged with paying employees wages less than the minimum wage and requiring employees to work more than 40 hours per week without paying overtime.  Mama's also failed to keep accurate records of wages paid and hours worked by employees.

This case serves as a warning and opportunity for employers to review who is entitled to overtime and what records must be maintained by a business.

Virginia businesses follow the Fair Labor Standards Act ("FLSA") with regards to overtime and minimum wage standards.  The FLSA specifies that employees required to work more than 40 hours in a week are entitled to overtime at a rate no less than 1.5 times the normal hourly rate. Additionally, certain employees are exempt and not entitled to overtime.