Maryland tip laws (2026)
Maryland's minimum wage is $15.00 an hour, and tipped workers can be paid as little as $3.63 cash, an $11.37 tip credit. Montgomery, Howard and Prince George's counties set higher minimums, and Montgomery requires at least $4.00 cash. Restaurants also owe tipped workers a tip-credit wage statement each pay period.
Maryland at a glance
Tip credit allowedMaryland: $15.00 an hour minimum wage. Tipped staff can be paid $3.63 cash, with up to $11.37 counted from tips.
| State minimum wage | $15.00/hr | Statewide from .[1] |
|---|---|---|
| Tipped cash wage | $3.63 | Plus up to $11.37 in tips = $15.00.[2] |
| Max tip credit | $11.37 | Counted from tips.[2] |
| Tip pooling | Allowed | Mandatory pools allowed.[2][3] |
| Card-fee deduction | Pro rata only | Only the tip's share of the fee.[4] |
| Card tip payout | Card tips are due by the regular payday under federal rules, without waiting on the card company.[3] | |
| Local minimum wages | 3 places | Local rates on file. See all[5] |
Rates verified against the Maryland Department of Labor, Division of Labor and Industry on . Rates as of . Tipped totals are worked out from the rates above. Download this data (CSV)
02The yes/no sheet
Can you do this in Maryland?
In Maryland you can take a tip credit of up to $11.37 an hour, can require staff to join a tip pool and can take out only the tip's share of a card fee. Each answer below carries its condition and an official source.
| Number | Can you… | Answer | The condition |
|---|---|---|---|
| 01 | Take a tip credit against minimum wage? | Yes | Pay at least $3.63 cash and count up to $11.37 in tips. Tips must cover the gap.[2] |
| 02 | Make staff join a tip pool? | Yes | Allowed, as long as only eligible staff share.[3] |
| 03 | Include bartenders, bussers, runners and hosts? | Depends | Bartender, busser, food runner and host: federal eligibility turns on duties and whether a tip credit is taken. State rules may limit pools further.[3] |
| 04 | Include cooks and dishwashers? | Depends | Under federal rules, cooks and dishwashers can join a required pool only if everyone gets the full federal minimum. Stricter state rules still apply.[3] |
| 05 | Give managers or supervisors a share? | No | Federal rules keep managers and supervisors out of other workers' tips. Tips for service they alone provide are separate.[3] |
| 06 | Let an owner keep any of the tips? | No | Federal rules bar the employer from keeping workers' tips, including through a pool.[3] |
| 07 | Pick your own split (hours, points or percentages)? | Depends | The employer can set valid pool contributions under federal rules, with notice first. Only tips kept count toward the credit.[4] |
| 08 | Take card processing fees out of tips? | Pro rata | Only the card fee on the tip itself, and never below the minimum wage.[4] |
| 09 | Hold card tips until payday? | Deadline | Card tips are due by the regular payday under federal rules, without waiting on the card company.[3] |
| 10 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[6][3][4] |
| 11 | Keep a mandatory service charge for the house? | Yes | Yes, by default.[7] |
| 12 | Pay tips on a payroll card? | Yes | With the worker's consent. Offer another way to get paid too.[8] |
03State vs federal
Maryland vs federal law
Maryland sets a stricter rule than federal law on 2 of the 10 rules below, starting with a $15.00 minimum wage against the federal $7.25. Where the two differ, the rule that is better for the worker applies.
| Rule | Federal (FLSA) | Maryland | Comparison |
|---|---|---|---|
| Minimum wageStricter | Federal$7.25[3] | Maryland$15.00[1] | Stricter |
| Tipped cash wageStricter | Federal$2.13[3] | Maryland$3.63[2] | Stricter |
| Max tip creditHigher credit | Federal$5.12[3] | Maryland$11.37[2] | Higher credit |
| Who counts as tippedState rule | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[3] | MarylandCustomarily and regularly gets more than $30 a month in tips.[2] | State rule |
| Managers in the poolFederal applies | FederalManagers/supervisors meeting the executive duties test cannot keep employees’ tips or receive from pools; they may keep only tips received directly for services they directly and solely provide. No salary-level test is used for this tip restriction.[3] | MarylandFederal rules keep managers and supervisors out of other workers' tips. Tips for service they alone provide are separate.[3] | Federal applies |
| Kitchen in the poolFederal applies | FederalCooks and dishwashers may join a nontraditional mandatory pool only when all workers receive a direct cash wage of at least the full federal minimum wage and no tip credit is taken; employer/managers/supervisors remain excluded. State law may be stricter.[3] | MarylandUnder federal rules, cooks and dishwashers can join a required pool only if everyone gets the full federal minimum. Stricter state rules still apply.[3] | Federal applies |
| Card fees from tipsSame as federal | FederalOnly the actual proportional credit-card transaction fee may be deducted from charged tips; no deduction exceeding that fee or reducing required minimum wages; state law may forbid even that deduction.[3] | MarylandTip's share of the fee only[4] | Same as federal |
| Card tip payoutState rule | FederalCharged tips due by regular payday, without waiting for processor reimbursement. Employer-administered pools fully distributed by regular payday for the workweek/pay period; if the amount/distribution cannot be determined before payroll, distribute as soon as practicable afterward.[3] | MarylandCard tips are due by the regular payday under federal rules, without waiting on the card company.[3] | State rule |
| Mandatory service chargesState rule | FederalA compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[3] | MarylandThe business's money[7] | State rule |
| Overtime for tipped staffState rule | FederalFor covered nonexempt employees, overtime generally begins after 40 hours in a workweek. Use the full regular rate, at least the full federal minimum wage, not $2.13; the hourly tip credit is not increased for overtime. Voluntary tips above the tip credit are excluded; distributed service charges enter the regular rate.[3] | MarylandAfter 40 hours: 1.5 times the full minimum, minus the normal tip credit. Tips above the credit don't count toward the rate.[9] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how Maryland fits among the four tip credit classes.
04Wages
Minimum wage and the tip credit in Maryland
In Maryland employers can pay tipped staff $3.63 an hour and count up to $11.37 in tips toward the $15.00 minimum. If tips fall short, the employer makes up the difference.[2]
One server, one slow 30-hour week in Maryland
A busy week with $341.10 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.
- Tip credit conditions
- Tell the worker first. Cash plus tips kept has to reach the minimum, and the credit can't exceed actual tips. County floors may differ.[2]
- Who counts as tipped
- Customarily and regularly gets more than $30 a month in tips.[2]
- Overtime
- After 40 hours: 1.5 times the full minimum, minus the normal tip credit. Tips above the credit don't count toward the rate.[9]
- Side work and dual jobs
- Related side work that brings in no tips and tops 20% of work time gets full minimum. Unrelated work gets no tip credit.[7]
Other rates
| Rate | Hourly |
|---|---|
| Youth or training Under 18 state minimum85% of the state minimum. Federal and county rules still apply.[1] | $12.75 |
Scheduled increases
No statewide increase with a published amount is on file as of .
05Local rates
City and county minimum wages in Maryland
3 cities and counties in Maryland set their own minimum wage, from $15.30 in Prince George’s County to $18.00 in Montgomery County. A restaurant inside one of them pays the local rate, not the $15.00 state rate.[5]
| City or county | Rate | vs state $15.00 | Tipped cash wage | Effective |
|---|---|---|---|---|
| Montgomery CountyLarge: 51+ employeesAdjusts every year. Separate nonprofit and home-care tier, and some youth exclusions.[5] | $18.00 | +$3.00 over state | $4.00 | Next change |
| Montgomery CountyMid-sized: 11–50 employeesAdjusts every year. Separate nonprofit and home-care tier, and some youth exclusions.[5] | $16.50 | +$1.50 over state | $4.00 | Next change |
| Howard CountyAll employer sizes. The state $3.63 tipped cash floor applies.[5] | $16.00 | +$1.00 over state | $3.63 | |
| Montgomery CountySmall: 10 or fewerAdjusts every year. Separate nonprofit and home-care tier, and some youth exclusions.[5] | $15.95 | +$0.95 over state | $4.00 | Next change |
| Prince George’s CountyAll employer sizes. The state $3.63 tipped cash floor applies.[5] | $15.30 | +$0.30 over state | $3.63 |
County wages
Three counties pay more, one by employer size
Howard, Montgomery and Prince George's counties set their own minimums. Montgomery splits by employer size and is the only one with a higher tipped cash wage.[5]
| Where | Minimum wage | Tipped cash wage |
|---|---|---|
| Statewide | $15.00 | $3.63 |
| Montgomery County, 51+ workers | $18.00 | $4.00 |
| Montgomery County, 11 to 50 workers | $16.50 | $4.00 |
| Montgomery County, 10 or fewer | $15.95 | $4.00 |
| Howard County | $16.00 | $3.63 |
| Prince George's County | $15.30 | $3.63 |
06Tip pool
Who can be in the tip pool in Maryland
Maryland allows tip pools, and employers can make them mandatory. Owners, managers and supervisors can't share in them. A tip pool collects tips and splits them among staff; a tip-out is one worker handing part of their tips to others.
| Role | Can share? | Condition |
|---|---|---|
| Front of house | ||
| Server | Depends | Federal eligibility turns on duties and whether a tip credit is taken. State rules may limit pools further.[3] |
| Bartender | Depends | Federal eligibility turns on duties and whether a tip credit is taken. State rules may limit pools further.[3] |
| Busser | Depends | Federal eligibility turns on duties and whether a tip credit is taken. State rules may limit pools further.[3] |
| Food runner | Depends | Federal eligibility turns on duties and whether a tip credit is taken. State rules may limit pools further.[3] |
| Host | Depends | Federal eligibility turns on duties and whether a tip credit is taken. State rules may limit pools further.[3] |
| Barback | Depends | Federal eligibility turns on duties and whether a tip credit is taken. State rules may limit pools further.[3] |
| Expo | Depends | Federal eligibility turns on duties and whether a tip credit is taken. State rules may limit pools further.[3] |
| Back of house | ||
| Cook | Depends | Federal eligibility turns on duties and whether a tip credit is taken. State rules may limit pools further.[3] |
| Dishwasher | Depends | Federal eligibility turns on duties and whether a tip credit is taken. State rules may limit pools further.[3] |
| Leadership | ||
| Shift lead | Depends | Federal eligibility turns on duties and whether a tip credit is taken. State rules may limit pools further.[3] |
| Manager or supervisor | Not allowed | Federal rules bar them from other workers' pooled tips.[3] |
| Owner | Not allowed | Federal rules bar them from other workers' pooled tips.[3] |
- Managers and supervisors
- Federal rules keep managers and supervisors out of other workers' tips. Tips for service they alone provide are separate.[3]
- Owners
- Federal rules bar the employer from keeping workers' tips, including through a pool.[3]
- Back of house
- Under federal rules, cooks and dishwashers can join a required pool only if everyone gets the full federal minimum. Stricter state rules still apply.[3]
- Who sets the percentages
- The employer can set valid pool contributions under federal rules, with notice first. Only tips kept count toward the credit.[4]
- Cap on what a pool can take
- No state rule. Federal rule applies: no federal percentage or amount cap for a valid mandatory pool; eligibility, notice and minimum wage rules still apply.[3][2]
- Pooling allowed
- Yes.[2]
07Put it to work
Setting up a tip pool in Maryland
Under Maryland rules, 6 of the 10 staff in this example can share a $1,200 pool. The table splits the same pool by percentage, by points and by hours.
| Who | By % | By points | By hours |
|---|---|---|---|
| Maya | $268.29 | $250.00 | $211.78 |
| Jordan | $268.29 | $250.00 | $211.76 |
| Priya | $268.29 | $250.00 | $211.76 |
| Sam | $175.61 | $200.00 | $211.76 |
| Luis | $109.76 | $125.00 | $176.47 |
| Ava | $109.76 | $125.00 | $176.47 |
| Theo | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Kim | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Rafa | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Dana | Not in the pool. Federal rules bar them from other workers' pooled tips. | ||
| Total | $1,200.00 | $1,200.00 | $1,200.00 |
Fictional restaurant and staff. The guest-facing staff here are assumed to meet Maryland's condition for sharing (see who can be in the tip pool, above). Percentages and point weights are examples, not a recommendation. Shares are rounded to the cent, and any leftover cent goes to the first server. Run your own numbers in the tip pooling calculator.
Ferry Tip Manager: support pool split by hours
Servers and bartenders pay into the support pool, and Tip Manager splits it by hours worked. Each person sees their share, with no spreadsheet at close.
Who it's for Full-service restaurants that tip out bussers, runners and bar backs
08Service charges
Service charges vs tips in Maryland
In Maryland a mandatory service charge belongs to the business by default. A tip is the guest's choice and belongs to staff.
| Question | OptionalTip | MandatoryService charge |
|---|---|---|
| Who sets the amount | The guest | The business |
| Who it belongs to | The worker it was left for, or the pool | The business, by default.[7] |
| Can it go to staff? | Yes, through the pool | Yes. Amounts paid to staff are wages, not tips.[3] |
| How it's taxed (federal) | Tip income the worker reports | Regular wages, with payroll taxes[10][11] |
| Guest notice | None needed | No state rule. Federal law sets no menu or receipt notice rule.[2] |
- Step 1Did the guest choose whether to pay it, and how much?YesIt's a tip. It belongs to staff.NoIt's a mandatory charge. Go to step 2.
- Step 2What does Maryland say?Business owns it by defaultThe business, by default.[7]
- Step 3Check the cityNo city service charge rules on file for Maryland.
- Menu and receipt notice
- No state rule. Federal law sets no menu or receipt notice rule.[2]
- Large-party auto gratuities
- A required automatic charge isn't a tip. If it's paid out to staff, it has to meet wage rules.[7]
Local service charge rules
No local service charge rules on file for Maryland.
More on the difference: service charge vs tip.
09Card tips
Card tips in Maryland: fees and payout timing
In Maryland only the tip's share of the card processing fee can come out of a card tip. Payout deadline: card tips are due by the regular payday under federal rules, without waiting on the card company.
Only the card fee on the tip itself, and never below the minimum wage.[4]
When card tips have to land
- TonightGuest adds a tip On the card, at the table.
- CloseShift is tallied The pool is split by your rules.
- DeadlineMaryland rule Card tips are due by the regular payday under federal rules, without waiting on the card company.[3]
- Last dayFinal pay Due on the regular payday that would have applied if the job had continued.[12]
Paydays: At least every 2 weeks or twice a month. If payday lands on a day off, pay comes the workday before.[8]
Paying tips on a payroll card
- Allowed?Yes
- Worker consent needed?Yes
- Free way to get the money?Federal ruleNo state rule. Federal rule applies: no general federal free cash-withdrawal mandate identified; Regulation E requires fee disclosures. State law may require free access.[13][2]
- Must you offer another option?Yes
- Holding cash tipsFederal ruleNo state rule. Federal rule applies: employer may collect to administer a valid pool, then distribute under the regular-payday rule. No broader authorization to retain cash tips is established.[3][2]
- Tips shown on the pay stubYes
Ferry Pay: each tip share, paid out digitally
Each person's direct tips, tip outs and payable amount in one view, then paid through Ferry Pay. No cash to keep on hand for payouts. Eligibility and fees apply.
Who it's for Operators who want to stop the nightly cash run
“Since launching this card program, we've reduced our cash-carrying costs by over 66 percent”
10Records
Records and notices in Maryland
Keep each tipped worker's tips and hours on record, shift by shift. Maryland: at least 3 years for payroll and tip-credit wage statements.
Maryland State
- Tip records Keep each worker's name, job, pay rate, pay and daily and weekly hours. Tip-credit statements show weekly cash, tips and hourly rate.[15]
- How long to keep them At least 3 years for payroll and tip-credit wage statements.[9]
- Tip credit notice Required. Explain the state tip credit and pool policy. The federal notice adds the cash wage, credit amount and tip-retention rules.[4]
- Posters and forms Maryland minimum-wage/overtime notice; Notice to Tipped Employees prohibiting walkout deductions; Restaurant Tip Credit Wage Statement each pay period.[5][6][9]
Everywhere Federal
- Tip records Maintain employee identity, time and pay records. Tip-credit employers additionally retain tipped employee, reported tips, credit amounts and hours/earnings by tipped and nontipped occupation. No-tip-credit employers operating mandatory pools record each recipient and weekly/monthly tips. IRS daily records/reporting are separate obligations.[3]
- How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[16]
- Tip credit notice Oral or written notice must state cash wage; tip credit amount; credit cannot exceed actual tips; employee retains tips except valid traditional pool; credit unavailable until informed. Traditional pool contribution amounts also disclosed.[3]
- A written pool policy Good practice, not a federal rule: who's in, how it splits, when it pays. Share it with staff. How to write one.
Paperwork
Two things Maryland restaurants hand to tipped staff
Maryland adds its own paperwork on top of payroll. One shows the math on tips, the other spells out the walkout ban.[15][17][9][6]
- 01
Tip-credit wage statement
Shows each workweek's cash wages, reported tips and effective hourly rate. Due within two weeks after the pay period ends, and kept 3 years.[9][15]
- 02
Notice to tipped employees
A required state notice saying workers can't be made to pay for a customer's food or drinks after a walkout.[6][17]
Think your tips were handled wrong in Maryland?
Workers in Maryland can file a tip or wage claim with the Maryland Department of Labor, Division of Labor and Industry (410-767-2357). Filing is free, and this page can't settle a dispute; the state can.[20]
- Phone
- 410-767-2357[5]
- Website
- labor.maryland.gov/labor/wages
Retaliation: Workers can use their wage rights without threats or retaliation. Federal law also protects complaints.[18]
Penalties: Unpaid wages, usually an equal amount in damages, plus fees and costs. A good-faith finding can cut the damages.[19]
Can they take this out of my tips?
- Walkouts and dine-and-dashNot allowedBanned outright. Workers can't be made to pay for a customer who walks out.[6]
- BreakageNot allowedBanned. Federal law bars employers from using tips for business costs, and a signed paycheck deduction doesn't change that.[3]
- Register shortagesNot allowedBanned. Federal law bars employers from using tips for business costs, and a signed paycheck deduction doesn't change that.[3]
- UniformsNot allowedBanned. Federal law bars employers from using tips for business costs, and a signed paycheck deduction doesn't change that.[3]
- Card processing feesDependsOnly the actual card fee on the tip, and not below minimum.[4]
- A manager's shareNot allowedFederal rules bar employers and managers from workers' tips.[3]
11Law changes
What changed in Maryland tip law, and what's coming
No statewide increase with a published amount is on file for Maryland as of .
No changes to Maryland tip or wage rules on file for the last 24 months.
Key statutes
- Labor and Employment 3-413, 3-419
- COMAR 09.12.41.19–.20
- Labor and Employment 3-502–505
- Labor and Employment 3-713, 3-424, 3-427
Not covered here? Ask the Maryland Department of Labor, Division of Labor and Industry at 410-767-2357 or on labor.maryland.gov/labor/wages.
12FAQ
Maryland tip law questions
Plain answers to the 8 questions restaurant owners and staff ask most about Maryland tip law, each linked to its source.
What is Maryland's tipped minimum wage?
What is Montgomery County's minimum wage?
Since July 1, 2026: $18.00 for employers with 51 or more workers, $16.50 for 11 to 50, and $15.95 for 10 or fewer.[5]
What is a restaurant tip-credit wage statement?
A statement showing each workweek's effective hourly rate from cash wages plus reported tips. Restaurants give it within two weeks after the pay period ends.[9]
Can a restaurant charge a worker for a walkout?
No. Maryland bans making tipped workers pay for food or drinks when a customer leaves without paying.[6]
Does Maryland have a side-work rule?
Is a mandatory service charge a tip?
Can card fees come out of tips?
When is final pay due?
On the regular payday that would have applied if the job had continued.[12]
13Compare
How Maryland compares with nearby states
Maryland borders Delaware, Pennsylvania, Virginia, West Virginia and District of Columbia. District of Columbia pays a higher minimum wage than Maryland's $15.00. Running locations on both sides of a line? Each one follows its own state's rules.
Neighboring states
- Delaware tip laws$15.00 min wage $2.23 tipped cash wage Above $2.13
- Pennsylvania tip laws$7.25 min wage $2.83 tipped cash wage Above $2.13
- Virginia tip laws$12.77 min wage $2.13 tipped cash wage $2.13 cash
- West Virginia tip laws$8.75 min wage $2.62 tipped cash wage Above $2.13
- District of Columbia tip laws$18.40 min wage $10.30 tipped cash wage Above $2.13
States with the same rules
Same tip credit class as Maryland: Tip credit, cash wage above federal.
- Rhode Island tip laws$16.00 min wage $3.89 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Idaho tip laws$7.25 min wage $3.35 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Ohio tip laws$11.00 min wage $5.50 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- South Dakota tip laws$11.85 min wage $5.925 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Vermont tip laws$14.42 min wage $7.21 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Missouri tip laws$15.00 min wage $7.50 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
The law decides who's in. Ferry runs the split.
See how operators set pool rules in Ferry Tip Manager and pay tips out without a cash run. Bring your own Maryland setup.
14Sources
Sources for Maryland tip laws
Every figure on this page links to one of these 20 sources: 16 for Maryland and 4 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
- 1Labor and Employment 3-413 Minimum WageMaryland General Assembly · Official source · Checked Pinpoint: 3-413(c); 3-413(d), 15x.85mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle§ion=3-413&enactments=false
What the source says
“beginning January 1, 2024, $15.00 per hour.”
“a rate of 85% of the State minimum wage established under this section if the employee is under the age of 18 years.”
- 2Labor and Employment 3-419 Tip CreditMaryland General Assembly · Official source · Checked Pinpoint: 3-419(c), subtraction 15-3.63; 3-419(a)-(c); 3-419(a)(1)(i)mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle§ion=3-419&enactments=false
What the source says
“may not exceed the minimum wage established under § 3–413 of this subtitle for the employee less $3.63.”
“has kept all of the tips that the employee received.”
“customarily and regularly receives more than $30 each month in tips;”
- 3Fact Sheet 15 Tipped Employees Under the FLSAUnited States Department of Labor · Official source · Checked Pinpoint: Federal permission; state retention/pooling conditions apply; Federal Fact Sheet 15, Traditional/Other Tip Poolingwww.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
What the source says
“The FLSA allows employers to require employees to share or “pool” tips with other eligible employees.”
“As explained below, the rules governing tip pools depend on whether the employer pays a direct (or cash) wage equal to the full minimum wage to tipped employees or not.”
“An employer may not receive tips from such a tip pool and may not allow managers and supervisors to receive tips from the pool.”
- 4Understanding Maryland Tip CreditMaryland Department of Labor · Official source · Checked labor.maryland.gov/forms/esstipinfobrochure.pdf
What the source says
“the employer must first notify the employee of any tip pooling policy”
“the employer may subtract the fee amount for the tip from the total tip given.”
“However, this charge may not reduce the employee’s wage below the minimum wage.”
- 5Maryland Minimum Wage and Overtime LawMaryland Department of Labor · Official source · Checked Pinpoint: County minimum wage section; County rates; Montgomery cash 4 in same sectionwww.labor.maryland.gov/labor/wages/wagehrfacts.shtml
What the source says
“Some counties have higher minimum wage rates and additional rules and exemptions”
“all employers (regardless of size) must pay at least $16.00 per hour.”
“Large employers (51 or more employees) must pay at least $18.00 per hour. Mid-sized employers** (11 to 50 employees) must pay at least $16.50 per hour. Small employers (10 or fewer employees) must pay at least $15.95 per hour.”
- 6Notice to Tipped EmployeesMaryland Department of Labor · Official source · Page updated · Checked Pinpoint: 3-713 or 3-503 or Federal ownership rule; Agency posting/form requirementwww.labor.maryland.gov/forms/esstipinfo.pdf
What the source says
“Maryland law prohibits an employer from requiring a tipped employee to reimburse an employer or pay an employer for the amount of a customer’s charge for food or beverage”
“EMPLOYERS ARE REQUIRED TO CONSPICUOUSLY POST THIS NOTICE”
- 7COMAR 09.12.41.19 Regular Hourly RateMaryland Division of State Documents · Official source · Checked Pinpoint: 09.12.41.19(D)(4); COMAR 09.12.41.19(D)(2)dsd.maryland.gov/regulations/Pages/09.12.41.19.aspx
What the source says
“A tipped employee who spends more than 20 percent of the employee’s work time performing non-tip producing duties directly related to their tipped occupation shall be paid by the employer at least the minimum wage for that time.”
“A compulsory monetary charge for service, even if retained by the employee, is not a tip.”
“Regular Hourly Rate.”
- 8Labor and Employment 3-502 Wage PaymentMaryland General Assembly · Official source · Checked Pinpoint: 3-502(a),(b); 3-502(e)(2); 3-502(e)(2)(i)mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle§ion=3-502&enactments=false
What the source says
“shall pay each employee at least once in every 2 weeks or twice in each month.”
“credit of the wage of an employee to a debit card or card account”
“authorized by the employee;”
- 9Tip Credit Wage Statement FAQsMaryland Department of Labor · Official source · Checked Pinpoint: FAQ 10; FAQ 11; per-workweek calculation, due within 2 weeks of pay-period end; FAQ 12labor.maryland.gov/labor/wages/esstipcreditfaqs.shtml
What the source says
“The employer may not take a larger tip credit for an overtime hour than for a straight time hour.”
“The tip credit wage statement should include the hours worked, the rate of employer paid cash wages, reported tips”
“the tip credit wage statement should be retained for at least three (3) years.”
- 10Tip recordkeeping and reportingInternal Revenue Service · Official source · Checked Pinpoint: Service charges are not tips, paragraph 2; qualified tips deduction, net-income limit; tip income, Social Security/Medicarewww.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting
What the source says
“Service charges (also referred to as “auto-gratuities”), when distributed to an employee, are generally treated as wages paid by the employer to the employee rather than tips paid by the customer.”
“For self-employed individuals, the deduction may not exceed the individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.”
“These amounts are subject to federal income tax and generally are also subject to Social Security and Medicare taxes.”
- 11Revenue Ruling 2012-18Internal Revenue Service · Official source · Page updated 2012 · Checked Pinpoint: Q 1/A 1, four distinguishing factors; p. 1, ruling headingwww.irs.gov/pub/irs-drop/rr-12-18.pdf
What the source says
“compulsion; (2) the customer must have the unrestricted right to determine the amount; (3) the payment should not be the subject of negotiation or dictated by employer policy; and (4) generally, the customer has the right to determine who receives the payment.”
“Rev. Rul. 2012-18”
- 12Labor and Employment 3-505 Final WagesMaryland General Assembly · Official source · Checked Pinpoint: 3-505(a)mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle§ion=3-505&enactments=false
What the source says
“on or before the day on which the employee would have been paid the wages if the employment had not been terminated.”
- 13Are there fees to use a payroll card?Consumer Financial Protection Bureau · Official source · Page updated · Checked www.consumerfinance.gov/ask-cfpb/are-there-fees-to-use-a-payroll-card-en-403
What the source says
“Many state laws require that you’re able to access or withdraw your money for free, so check your state’s laws.”
- 14What is a payroll card?Consumer Financial Protection Bureau · Official source · Page updated · Checked Pinpoint: Federal Regulation Ewww.consumerfinance.gov/ask-cfpb/what-is-a-payroll-card-en-401
What the source says
“Your employer has to offer you at least one alternative to a payroll card.”
- 15Labor and Employment 3-424 RecordsMaryland General Assembly · Official source · Checked mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle§ion=3-424&enactments=false
What the source says
“the hours that each employee works each day and workweek;”
- 16Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: Posting, paragraph 1www.dol.gov/agencies/whd/fact-sheets/21-flsa-recordkeeping
What the source says
“Each employer shall preserve for at least three years payroll records, collective bargaining agreements, sales and purchase records.”
“Employers must display an official poster outlining the provisions of the Act, available at no cost from local offices of the Wage and Hour Division and toll-free, by calling 1-866-4USWage (1-866-487-9243).”
“Records on which wage computations are based should be retained for two years,”
- 17Labor and Employment 3-713 Customer WalkoutsMaryland General Assembly · Official source · Checked mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle§ion=3-713&enactments=false
What the source says
“§3–713.”
- 18Maryland Law Protects All WorkersMaryland Department of Labor · Official source · Checked Pinpoint: Agency allworkers rights introductionlabor.maryland.gov/labor/workrights
What the source says
“You are entitled to exercise your rights free of threats or retaliation.”
- 19Labor and Employment 3-427 RemediesMaryland General Assembly · Official source · Checked Pinpoint: 3-427(a),(d)mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle§ion=3-427&enactments=false
What the source says
“an additional amount equal to the difference between the wage paid to the employee and the wage required under this subtitle as liquidated damages;”
- 20Wage Claim Form InstructionsMaryland Department of Labor · Official source · Checked Pinpoint: Submission instructions; Headinglabor.maryland.gov/labor/wages/essclaimform.shtml
What the source says
“Maryland Department of Labor Division of Labor and Industry”
“Wage Claim Form Instructions”
15Methodology
How we research these pages
Every figure on this page comes from an official source, a statute, a regulation or a government agency page, and links to it where it is used. Ferry checks the page against those sources on a schedule and logs every change.
- 1
Official sources only
Statutes, regulations, state labor agencies, city ordinances and the U.S. Department of Labor. No vendor blogs, no AI answers, no secondary summaries as the only source.
- 2
Every figure is linked
Each rate and rule carries a numbered link to the statute or agency page behind it, with the exact pinpoint and, where available, a link that opens at the sentence itself.
- 3
Re-checked on a schedule
Every page is re-checked each January and July, and whenever a state or city changes a rate. Cash wage plus tip credit is checked against the minimum wage on every build.
- 4
Gaps are left out, not guessed
If a rule can't be confirmed from an official source, it isn't shown. The page points to the state agency instead.
What changed on this page
- First version of this page. Every figure was checked against the official sources listed on this page.
Researched by Ferry's tip operations research team. Last reviewed .
Changes to the law itself are listed in What changed and what's coming.
16Every state
Tip laws in every state
Pick any state for its tip credit, tip pool, service charge and card tip rules. Each chip shows the state's tip credit class.
- No tip creditNo tip credit
- Above $2.13Tip credit, cash wage above federal
- $2.13 cashTip credit, federal cash wage
- FederalFederal rates apply
51 of 51 state pages. Open the master guide for the federal baseline, tip credit classes and the full comparison table.