Minimum-wage workers might get an hourly raise to $15 this year if the governor’s legislation passes in the General Assembly.
The House Economic Matters Committee is set to hear testimony Tuesday on the governor’s proposal — the Fair Wage Act of 2023 (House Bill 549) — to raise Maryland’s minimum wage to $15 sooner than current law calls.
In 2019, the General Assembly passed a bill to raise the minimum wage to $15 an hour starting in 2025. Then-Gov. Larry Hogan vetoed the bill, which the General Assembly overrode.
In 2020, the minimum wage increased to $11.75 for people working for employers who have 15 or more employees. It increased to $11.60 for those working for employers with 14 or fewer employees.
Under that law, the minimum wage is set to increase by 75 cents a year until it reaches $15 by the year 2025.
Gov. Wes Moore’s plan introduced this session calls for raising the minimum wage to $15 an hour starting Oct. 1, 2023. Then, beginning July 1, 2025, future increases would be tied to inflation, up to 5%.
There are two conditions under which it would not increase: If the annual inflation is zero or negative, the minimum wage would stay the same for the next year. If a six-month change in employment is negative, the state’s Board of Public Works could temporarily suspend an increase for one year.
Some local chambers of commerce oppose the bill, saying it sends a message that Maryland is anti-business, and they are concerned about budgeting for increases tied to inflation.
Others with whom 11 News spoke on Sunday support the proposal.
“I think it is a really good idea. Minimum wage can’t afford to pay rising rents, cost of living. They can’t afford to support their families, and $15 an hour isn’t the current livable wage, which is more like $24 an hour. I think it’s a step in the right direction,” said Marla Parker.
“I commend the governor for his actions. Inflation, as all can see, the economy is not doing its best and people are struggling,” said Jenelle Thorman.
“In all honesty, any increase to it would be great. Right now is when people are suffering and going through hard times, so why would we want to wait, you know? We kind of need for that to happen sooner,” said Angel Cruz.
This is one of the governor’s legislative priorities. His proposed budget includes $413 million to pay state contractors if the wage increase goes take effect this year.
