The Maryland General Assembly is considering legislation that would gradually increase the state’s minimum wage from $15 per hour to $25 per hour and eliminate the tipped wage subminimum, currently $3.63 per hour for qualifying employees.
Advocates, led by the Maryland Living Wage for All campaign, launched efforts in January 2026 to support the bill and pursue a potential constitutional amendment for a November 2026 ballot measure. The proposal seeks phased increases over several years, reaching $25 by around 2030, with adjustments tied to inflation via the Consumer Price Index thereafter. It also repeals exemptions from the Maryland Wage and Hour Law, ends the tip credit system by January 1, 2031, and adds regulations for service fees in food service facilities, requiring prominent disclosure and distribution to direct service workers in most cases.
Nikki Cole, campaign coordinator for Maryland Living Wage for All, highlighted the urgency, stating that despite reaching $15, the wage has become outdated amid rising costs. “People are living out here, having two (or) three jobs, struggling to make ends meet,” Cole said. “We think that in Maryland, if you work full-time, work hard, no matter what your status is, your condition, type of employment, that you should be able to live and make the basic ends meet.” She referenced estimates placing a living wage for a family of four in Maryland at more than $30 per hour.
Cole addressed business concerns that higher wages would inflate consumer prices, arguing that price increases stem from broader factors like materials and market dynamics. “If you’re a business, whether you’re a large business or a small business, you’re a problem solver,” Cole noted. “You are constantly having to figure out how to deliver your product in a changing landscape. The labor is part of that changing landscape. It’s not something that should be excluded.”
A statewide poll by Gonzalez Research and Media Services, released in January 2026, found nearly two-thirds (65%) of Maryland voters support raising the minimum wage to $25 over several years while ending subminimum wages for tipped workers, with 34% opposing.
Opponents, including the Maryland Chamber of Commerce and the National Federation of Independent Business Maryland, warn that the increase would strain businesses already facing high costs and new taxes. They argue it could lead to staff reductions, closures, higher consumer prices, and reduced job opportunities, particularly for small employers.
The bill, introduced in the 2026 legislative session (with related proposals like HB1229 addressing consumer protection, labor, food service, and minimum wage), underwent a first reading and is under consideration in the House Ways and Means Committee. A companion or related measure proposes a constitutional amendment for voter approval in November 2026, with statutory changes effective upon ratification.
This push follows Maryland’s 2019 law that phased the minimum to $15 by 2025 (with no further automatic increases), and local variations in counties like Howard, Montgomery, and Prince George’s that exceed the state rate in some cases. The proposal would make Maryland’s wage among the nation’s highest if enacted, impacting low-wage workers in service industries across the state, including Southern Maryland counties where tourism, hospitality, and retail sectors rely heavily on tipped and entry-level labor.
Advocates emphasize worker retention, reduced reliance on multiple jobs, and economic stability for families in high-cost areas. The debate continues in Annapolis as the session progresses, with committee hearings anticipated.