This Maryland bill expands protections against noncompete and conflict of interest clauses by applying existing restrictions to employees of companies that move their majority of workers or headquarters out of the state. The law makes such restrictive clauses automatically unenforceable for workers earning at or below 150% of the state minimum wage, those in licensed health occupations, and direct patient care roles earning up to $350,000 annually. For higher-paid health care workers, the bill maintains current limits by capping noncompete agreements to one year and restricting geographic restrictions to within 10 miles of their primary workplace. Employers of these health care employees must also notify patients if a former employee relocates to a new practice location. The changes apply only to employment contracts signed on or after October 1, 2026.
HB 1205 establishes a minimum wage of $25.00 per hour for non-certified, non-supervisory school support staff (such as aides, clerks, and cafeteria workers) beginning July 1, 2028. It requires all Maryland county school boards to pay these employees at least this rate, directly affecting over 20,000 education support professionals statewide. The bill also mandates the State Department of Education to submit a cost report by December 1, 2026, with detailed estimates broken down by school system to implement this wage change.
HB 1129 requires provider agencies that contract with Maryland's Medicaid program (specifically for services like Community First Choice and Community Personal Assistance) to pay personal care aides a minimum wage of $17 per hour and provide written wage notices. It mandates these agencies to offer 24 hours of paid sick leave annually (or upon hire) and additional paid leave at a rate of 1 hour per 30 hours worked after 720 hours in a year. The Maryland Department of Health can enforce compliance through corrective plans, program suspension, or termination for noncompliance. This bill directly affects personal care aides employed by Medicaid-reimbursed agencies, aiming to improve their compensation and leave benefits.
SB 886 establishes a constitutional right for Maryland workers in food service to be paid at least the state minimum wage without counting tips toward that amount. It removes existing exemptions allowing employers to use tip credits (where tips reduce required wages) and prohibits businesses from including tip credits in employee pay starting on a specified date. The bill also requires food service facilities to clearly disclose any service fees on menus or before ordering, and mandates that such fees be distributed to employees. These changes directly affect tipped workers in restaurants and cafes, and businesses charging service fees in Maryland.
HB 1016 invalidates noncompete and conflict-of-interest clauses in employment contracts for certain employees if their employer relocates the majority of its employees or principal business location outside Maryland. It directly affects low-wage workers (earning ≤150% of state minimum wage), healthcare workers providing direct patient care (earning ≤$350,000 annually), and veterinary professionals. For high-earning healthcare workers ($350,000+), the bill allows limited 1-year noncompete restrictions within 10 miles of their prior workplace. The law takes effect October 1, 2026, and applies only to contracts signed after that date.
HB 1229 establishes a constitutional right for Maryland workers to receive at least the state minimum wage without counting tips toward that amount. It bans employers from using tip credits for tipped employees (effective on a specified date) and requires food service facilities to prominently disclose any service fees to customers before ordering. The bill repeals exemptions that allowed lower wages for certain workers (like those in security roles) and updates consumer protections around service fees under Maryland law. These changes directly affect food service workers and restaurant customers, ensuring fairer wage treatment and transparent fee practices.
HB 1479 (Maryland Raise the Wage Act) increases Maryland's minimum wage for most employers to $15 per hour starting January 1, 2024, rising to $18 per hour beginning January 1, 2028, with future increases tied to the Washington-Arlington-Alexandria Consumer Price Index (CPI). Small businesses (with 49 or fewer employees) receive a phased transition: $15 per hour from January 2024 through December 2028, then $18 per hour starting January 2029. The law automatically adjusts the wage annually based on CPI growth (capped at 5% per year), preventing freezes during periods of no CPI increase. The bill takes effect October 1, 2026, directly affecting all Maryland employers and their hourly workers.
SB 764 establishes a minimum wage of $25.00 per hour for education support professionals in Maryland public schools, effective July 1, 2028. It directly affects county boards of education (which must pay this wage) and noncertificated school staff in non-supervisory bargaining units, such as aides, secretaries, and maintenance workers. The bill requires the State Department of Education to report by December 1, 2026, on the cost of implementing this wage, broken down by school system. It does not change current wages but mandates a new hourly rate for these positions starting in 2028.
HB 74 requires state contracts for construction or security services exceeding $2 million over three years to include a clause allowing contract modifications when statutory changes increase required compensation or benefits (e.g., new minimum wage laws). This directly affects large contractors working with Maryland state agencies on these projects. The bill mandates that any modified contract must first receive approval from the Chief Procurement Officer. It aims to ensure fair adjustments for cost increases driven by state-mandated changes, without requiring contractors to absorb unexpected expenses. The law takes effect October 1, 2026.
SB 60 prohibits employers from knowingly creating false records that cause underpayment of unemployment insurance contributions or overpayment of benefits exceeding $15,000 annually. It requires civil penalties from fraud violations to be deposited into the Unemployment Insurance Fund or used for worker restitution if prevailing wage laws were violated. The bill empowers the Attorney General to investigate and sue for workplace fraud, and allows licensing authorities to suspend licenses for serious fraud violations. It directly affects employers who commit wage or unemployment fraud, workers who may receive restitution, and state agencies enforcing labor and procurement laws.
