Thursday, July 17, 2008

Maryland Increases Its Minimum Wage to $6.55 Per Hour on July 24, 2008

The state of Maryland has increased its minimum wage from $6.15 per hour to $6.55 per hour, effective July 24, 2008. And for tipped employees, the minimum wage will also increase to $3.28 per hour.

The federal minimum wage will increase to $6.55 per hour on July 24, 2008. The minimum wage in Maryland is automatically replaced with the Federal minimum wage rate because it is higher than the State minimum wage rate.

According to Maryland Department of Labor, with certain exceptions, time and a half the usual hourly rate must be paid for all hours worked in excess of 40 in a workweek. Exemptions include certain agricultural workers, executives, administrative and professional employees.

Because of the mandated minimum wage increases, the summer job market for teenagers will decline. For every 10 percent increase in the minimum wage, employment for high school dropouts and young blach adults and teenagers falls by 8.5 percent, according to econonist David Neumark.

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