Minimum Wage DiscussionMSCCA Leadership Symposium 2019

About The Minimum Wage Law: Chris Peusch

What is the Minimum Wage Law?

•The Maryland General Assembly this year passed House Bill 166/Senate Bill 280 (Chs. 10 and 11)•Purpose: To phase in an increase in

the State minimum wage to $15.00 per hour by January 1, 2025•There is a more extended phase-in

period for employers with 14 or fewer employees

For 15+ Employees

Unless the Federal minimum wage is set at a higher rate, the State minimum wage for employers with 15 or more employees is as follows:• $11.00 per hour as of January 1, 2020• $11.75 per hour as of January 1, 2021• $12.50 per hour as of January 1, 2022• $13.25 per hour as of January 1, 2023• $14.00 per hour as of January 1, 2024• $15.00 per hour as of January 1, 2025

For 14 or Fewer Employees

The State minimum wage for an employer that employs 14 or fewer employees is as follows:• $11.00 per hour as of January 1, 2020• $11.60 per hour as of January 1, 2021• $12.20 per hour as of January 1, 2022• $12.80 per hour as of January 1, 2023• $13.40 per hour as of January 1, 2024• $14.00 per hour as of January 1, 2025• $14.60 per hour as of January 1, 2026• $15.00 per hour as of July 1, 2026.

Why act now? Katie Gentry

Why Businesses Should Not Wait!

People deserve a living wage

There is a risk of losing staff to other companies who phase in the minimum wage increase sooner than required.

Other costs may increase as your suppliers raise their employee’s hourly rates.

If you are currently paying above minimum wage, you will need to sustain your same competitive advantage to retain your employees.

We need to see the true cost of care.

Communication StrategiesLavonne Taylor & Kim Ritchey

Who Will Be Impacted?

EmployersEmployees

ParentsChildren

Lessons Learned From Other States• Advanced planning and clear

communication will help parents incorporate raises into their family budgets.• Effectively calculate/ project the

phase-in cost• Consider incremental tuition

increases, if possible• You may need to raise salaries

proportionately (e.g., giving raises across the board)

This Photo by Unknown Author is licensed under CC BY-SA-NC

Planning and Communication

Staff

Parents

Minimum Wage Calculator Ruthi Claytor

https://drive.google.com/file/d/1Keb0mv7QMacbuGBsdhrtyQilmsqcvGdw/view?usp=sharing

Minimum Wage Calculator Syretha Storey

Resources

•Maryland Small Business& Entrepreneur Resource Guide•Maryland Community Colleges•Chamber of Commerce •Maryland State Child Care Association• Kullman CPA• Small Business Association• Small Business Development Centers