Big push by lawmakers to increase Maryland's minimum wage — again
A proposed plan by Maryland lawmakers could raise the minimum wage up to $25, up from $15.
The Living Wage For All Act would increase the pay by 2030. It would also eliminate the tip credit starting in 2031 and automatically increase wages with inflation starting in 2033.
The bill's wage schedule shows a 67% increase in the span of a few years:
- $17 — Jan. 1, 2027
- $20 — Jan. 1, 2028
- $22.50 — Jan. 1, 2029
- $25 — Jan.1, 2030.
Democrats call for a minimum wage increase
Democrat and District 19 Delegate Vaughn Stewart is one of the sponsors who spoke at a Thursday committee meeting in support of the bill.
"A wage floor should be a floor," he said. "Employers must pay the full minimum wage directly, and so tips remain on top of whatever the minimum wage is, and that's phased in, again, gradually over an almost decade-long time horizon."
Steward said he believes it would help with inflation.
"What this bill does is it puts the idea of a living wage for all workers, with no exceptions, on the ballot in November of this year," he said.
Small businesses could be impacted, critics say
Jeremy Schwartz, professor of economics at Loyola University, said this is a complex issue, and it's important to look at all sides.
"What I hope they would consider is that trade off, that this is an opportunity to make a lot of households in Maryland, a lot of families better off, but we need to be wary of the possible employment effects," Schwartz said.
Critics believe if the bill is enacted, the effects may hit small businesses hard.
"Maryland is, you know, geographically, a very thin state with lots of other jurisdictions around it that businesses could potentially move to for lower labor costs," Schwartz explained. "But this is a lever that we've already pulled, and it's really a 20th-century, early 20th-century lever, when they're much more creative policy options at the governor's disposal that I think he might be more interested in."
Supporters say the bill is exactly what Marylanders need.
"The living wage calculator [shows] — at least a person needs in the state of Maryland to survive is over $30 an hour. So $25 is not even meeting the cost of living. It is deeply necessary at this moment," said Saru Jayaraman, the president of One Fair Wage.
State leaders proposed similar legislation in 2025
Maryland politicians introduced similar legislation in 2025 to add a minimum wage increase to the 2026 ballot.
The proposal included gradually raising pay to $20 for all workers and making tips exempt from taxation.
Maryland's minimum wage increased to $15 an hour on July 1, 2023. However, labor activists say the measure wasn't enough for workers who relied on tips.
State leaders also made efforts to increase pay in 2023 and 2024, but were unsuccessful.