Jan 23, 2025
Maryland lawmakers have announced a major legislative effort to raise Maryland’s minimum wage to $20 per hour by 2030, eliminate subminimum wages for tipped workers, and exempt tips from state income taxation.Del. Adrian Boafo and State Sen. Cory McCray joined labor leaders, tipped workers, and fair wage advocates at a press conference to announce the proposal, which also includes offering tax breaks for small businesses and would require transparency on service fees.The Maryland lawmakers also unveiled new polling from Fred Yang of Hart Research Associates showing widespread support for increasing the minimum wage and the other proposals, and the urgency of enacting the reforms given how high the cost of living is in Maryland.The poll showed that 72% of likely voters and 81% of oversampled unlikely voters supported raising the minimum wage to $20 per hour and eliminating the subminimum wage for tipped workers.  It also showed that 78% of voters cite the increasing cost of living as the reason for supporting the measure. 34% of likely voters and 45% of oversampled unlikely voters said the issue, if on the ballot, would make them more excited to vote in 2026. These voters span key demographics, including women, people of color, and young voters, demonstrating a strong cross-section of voters backing the reforms.“This polling demonstrates a clear mandate from Maryland voters to tackle wage inequity and deliver real solutions for working families,” Boafo said. “This legislation is not just about raising wages; it’s about addressing economic dignity and ensuring that all Marylanders can thrive.”“This legislation offers the right mix of pro-worker policies and small business protections to ensure that no one is left behind,” McCray said. “Marylanders deserve leadership that delivers real solutions to address wage inequity and affordability challenges.”The current minimum wage in Maryland is $15 per hour. The proposed legislation would gradually raise it to $20 per hour by 2030.The proposal would phase out two-tier wage structures so that tipped workers would earn the full minimum wage in addition to tips, and tips would not be taxed. Restaurants and small businesses would receive tax credits to help them transition to the higher cost of increased wages. Finally, businesses would be required to show how service fees are distributed.“This isn’t just about taxes on tips, said Saru Jayaraman, President of One Fair Wage. “It’s about ensuring that tipped workers—disproportionately women and people of color—can earn a fair wage with tips on top. The National Restaurant Association’s fearmongering and misinformation can’t obscure the truth: when workers earn fairly, businesses thrive, and communities prosper.”If the reforms are approved by the legislature, the amendment will appear on the November 2026 ballot in the form of a Constitutional Amendment, giving Maryland voters the chance to secure equal minimum wage for all workers in the state’s Constitution.
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