ANNAPOLIS, Md. - Maryland raised its minimum wage from $13.25 an hour to $15 an hour in 2024, but some lawmakers and advocacy groups are already pushing for a more ambitious increase.
State Senator Cory McCray, Delegate Adrian Boafo, and the group "One Fair Wage" announced a proposal to raise the state’s minimum wage to $20 an hour over the next five years. The plan, unveiled Thursday during discussions with fair wage advocates, also seeks to phase out the two-tiered wage structure that allows tipped workers to earn as little as $3.63 an hour.
Under the proposal, Maryland would become the eighth state to adopt a $20 minimum wage. The increase would be implemented gradually by 2030 and include tax credits for small businesses and restaurants to help them adjust.
Supporters argue that the move would address wage inequities and improve the standard of living for thousands of workers. However, the plan has sparked concerns from business leaders about potential economic consequences.
“For small businesses especially, they don’t have the largest margins,” said Alan Bauer, a local in Maryland. “They can’t afford that. And the end result will almost certainly be that some people will lose their jobs.”
The proposal to eliminate the lower wage for tipped workers is also drawing criticism. Amy Thompson, executive director of the Ocean City Chamber of Commerce, fears it could harm tipped employees.
“People know that tipped workers make $3 and some change an hour, so they’re willing to tip,” Thompson said. “If you shift to where they’re making minimum wage plus tips, I think you’re going to see less tips. Ultimately, people could actually make less money.”
Advocates counter that raising wages will reduce reliance on tips and ensure fair compensation for workers in all industries. Opponents argue that higher wages could lead to increased prices or staffing cuts, while supporters believe the plan will boost consumer spending and reduce poverty.
For workers, the increase to $20 an hour could mean earning approximately $41,600 annually for a full-time, 40-hour work week.
The legislation, if approved, will go to a ballot vote in 2026, giving Maryland voters the final say on the proposed wage hike.