2020 Maryland Tipped Minimum Wage
The 2020 Maryland Tipped Minimum Wage is $3.63.
Effective 2020-01-01Source: Tipped Employees: Payment of Less than Minimum Wage - The Maryland Guide to Wage Payment and Employment Standards (Maryland Department of Labor, Division of Labor and Industry)Verified 2026-09-01
Compared with 2019
Every figure on this page is unchanged from 2019.
| Item | 2019 | 2020 | Change |
|---|---|---|---|
| Minimum cash wage | $3.63 | $3.63 | +$0 (+0.0%) |
Who it applies to
Employers of tipped employees in Maryland
What changed this year, and why
Maryland's minimum cash wage for tipped employees in 2020
Common questions
- What is the minimum cash wage for tipped employees in Maryland in 2020?
- Employers must pay tipped employees at least $3.63 per hour in cash wages. This amount plus tips received must equal at least the full State Minimum Wage Rate.
- What happens if a tipped employee performs non-tip work?
- Tipped employees who are assigned to perform non-tip related tasks must be paid the full minimum wage rate for that non-tipped time.
What a tip credit is, and the cash wage underneath it
In Maryland, the 2020 tipped minimum wage rules set a minimum cash wage of $3.63 per hour. The tip credit wage statement shows the effective hourly tip rate of pay, which is calculated by adding the employer-paid cash wages plus all reported tips for tip credit hours worked, then dividing by the number of tip credit hours worked. For restaurants that use a tip credit, the employer pays the employee an hourly cash wage of less than the applicable minimum wage, with reported tips making up the difference. The purpose of the statement is to provide additional notification of the employee's effective hourly rate with tips included as it relates to the applicable minimum wage.
For restaurants that utilize a tip credit (employer pays the employee an hourly cash wage of less than the applicable minimum wage with reported tips making up the difference), the purpose of the tip credit wage statement is to provide an additional notification of a tip credit employee’s effective hourly rate of pay with tips included as it relates to the applicable minimum wage.
Tip Credit Wage Statement Frequently Asked Questions (FAQs) (Maryland Department of Labor, Division of Labor and Industry)
When the tips do not get you to the minimum wage
Under Maryland law, if tipped employees do not earn enough in hourly cash wages plus tips to reach at least the full applicable minimum wage per hour for the workweek, the employer must make up the difference. The minimum cash wage for 2020 is $3.63 per hour, but the employer's obligation is to ensure the employee receives at least the full minimum wage when cash wages and tips are combined. This rule applies to tip credit hours worked in each workweek, and the employer bears the responsibility to calculate and pay any shortfall.
Under federal, state and local wage laws, if tipped employees do not make enough in hourly cash wages plus tips (for tip credit hours) to earn at least the full applicable minimum wage per hour for the workweek, the employer must make up the difference.
Tip Credit Wage Statement Frequently Asked Questions (FAQs) (Maryland Department of Labor, Division of Labor and Industry)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Tipped Employees: Payment of Less than Minimum Wage - The Maryland Guide to Wage Payment and Employment Standards (Maryland Department of Labor, Division of Labor and Industry)
- Minimum cash wage
Employers must pay at least $3.63 per hour.
Other years
Every Maryland Tipped Minimum Wage year · Tipped Minimum Wage in every state