Maryland's minimum wage would increase to $20 for tipped workers under proposed legislation
BALTIMORE -- State leaders plan to introduce legislation that would put a minimum wage increase on Maryland's 2026 ballot.
Maryland Delegate Adrian Boafo and Senator Cory McCray introduced the proposal, which includes gradually raising the minimum wage to $20 for all workers and making tips exempt from taxation. Employees who are eligible for tips would make tips on top of this base wage.
If the legislation is passed, a constitutional amendment would be added to the November 2026 ballot, allowing Maryland voters to decide on the measure.
A call for minimum wage increases
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.
The proposed legislation would also phase out Maryland's tipped minimum wage of $3.63 per hour, requiring that tipped workers earn the full minimum wage plus tips. The current law allows employers to pay less than $15 with tips making up the difference.
Restaurant workers say with costs going up they need to earn more.
"I've seen firsthand that restaurants can thrive while paying their workers a fair wage, and that customers will continue to tip as they always have," Khaddija Sheriff said.
Flaws with current wage system
One Fair Wage, a national coalition that has advocated for similar efforts, said the bill claims the current wage no longer meets the needs of workers with the increasing costs of living. They also added that women and people of color, who are disproportionately represented in tipped professions, face significant financial insecurity under the current wage system.
According to OFW, the subminimum wage impacts more than 105,000 tipped workers - of which are 65% women and 52% of people of color.
In regard to eliminating the tip tax, One Fair Wage argues the state will make more in tax revenue. As workers make more, the organization says more Marylanders will be income tax eligible.
"The state is yes, in a deficit, this bill could be a significant boost in revenue and tax revenue over the next several years, as hundreds of thousands of workers get a raise and are able to pay more income tax," said Saru Jayaraman, president of One Fair Wage.
Previous efforts to increase minimum wage
This is not the first time state leaders and workforce advocates have moved to increase wages.
In 2023, and 2024 state leaders made efforts to pass legislation that would require employers to pay tipped workers the state minimum wage - but they were unsuccessful.
"It has no chance"
Opponents of the bill say increasing the minimum wage would be a burden to small businesses.
"Dead on arrival. It has no chance," Sen. Stephen Hershey said.
Gov. Wes Moore issued the following statement:
"The Moore-Miller Administration is working with all partners involved to ensure that we are continuing to put forward legislation that will make Maryland safer, more affordable, more competitive, and the state that serves."