While Maryland mostly follows federal guidelines, there are also unique state-specific laws that affect how overtime is calculated and who is eligible for it. In this article, we will explore the various aspects of Maryland’s overtime laws, including how overtime is calculated for different types of employees, who is eligible, and how the regular rate of pay is determined.
This Article Covers:
Understanding Overtime in Maryland
- Which Overtime Laws Apply in Maryland?
- What is the Regular Rate of Pay in Maryland?
- How Do You Define a Workweek in Maryland?
- How Much is Overtime Pay in Maryland?
- Who is Eligible for Overtime Pay in Maryland?
- Who is Exempt from Overtime Pay in Maryland?
- Can Employers Mandate Overtime Work in Maryland?
Overtime for Hourly Rate, Two or More Hourly Rates, and Salaried Employees in Maryland
- How Do You Calculate Overtime for Hourly Employees in Maryland?
- How Do You Calculate Overtime for Employees with Two or More Hourly Rates in Maryland?
- How Do You Calculate Overtime for Salaried Employees in Maryland?
Overtime for Complex Pay Structures in Maryland
Additional Considerations for Maryland Overtime
- Is Compensatory Time Instead of Overtime Allowed in Maryland?
- Does Maryland Include Paid Time Off in Overtime Calculations?
Understanding Overtime in Maryland
Which Overtime Laws Apply in Maryland?
In Maryland, overtime pay is governed by both federal and state laws.
The federal Fair Labor Standards Act (FLSA) mandates that non-exempt employees receive overtime pay at a rate of 1.5 times their regular hourly wage for hours worked beyond 40 in a workweek.
For agricultural workers, overtime is applicable for all work over 60 hrs per week.
Maryland law aligns with this standard for most employees but includes specific provisions for certain industries.
Learn more about Maryland Overtime Laws.
What is the Regular Rate of Pay in Maryland?
In Maryland, the “regular rate” of pay is the hourly wage an employee earns for their standard, non-overtime workweek.
This rate isn’t just what the employer and employee agree upon—it’s calculated based on actual earnings. It includes hourly wages, salaries, commissions, and certain bonuses, unless excluded by law.
For employees paid by salary, piece rate, or commission, the regular hourly rate is determined by dividing total weekly earnings by the number of hours worked. This rate is then used to calculate overtime pay, which must be at least 1.5 times the regular rate for hours worked beyond 40 in a week.
How Do You Define a Workweek in Maryland?
In Maryland, a workweek is a fixed, recurring period of 7 consecutive days. The standard workweek is 40 hours, but employers can set their own 7-day period as long as it follows federal and state labor laws.
How Much is Overtime Pay in Maryland?
Overtime pay in Maryland is paid at a rate of 1.5 times the employee’s regular rate of pay for every hour worked beyond 40 in a week.
Overtime Pay = Regular Hourly Pay Rate x 1.5
With the current Maryland minimum wage of $15 per hour, this would put the minimum overtime pay at $22.50 ($15 x 1.5).
The minimum wage in Maryland varies for Montgomery and is based on the number of employees a business has so it’s best to check which minimum wage standards apply to you.
Who is Eligible for Overtime Pay in Maryland?
Most employees in Maryland must be paid 1.5 times their usual hourly rate for all work over 40 hrs per week. This applies to most types of employment and industries. However, there are specific exemptions where certain employees are not eligible for overtime compensation.
Who is Exempt from Overtime Pay in Maryland?
Some workers are completely exempt from both Maryland’s minimum wage and overtime laws, including:
- Immediate family members of the employer
- Certain agricultural workers
- Executives, administrators, and professionals who meet salary and job duty requirements
- Volunteers for non-profit, religious, and charitable organizations
- Minors under 16 working less than 20 hours per week
- Outside salespersons
- Commissioned employees who earn mostly from commissions
- Trainees in special education programs
- Non-administrative employees of organized camps
- Small food and drink establishments grossing under $400,000 annually
- Drive-in theaters
- Businesses processing fresh produce, poultry, or seafood
Who is Exempt from Overtime Only?
Some employees must still be paid at least the state minimum wage but do not qualify for overtime pay, including:
- Taxicab drivers
- Employees selling or servicing vehicles, farm equipment, trailers, or trucks
- Workers at non-profit theaters, music festivals, or concert venues
- Employees covered under specific federal transportation laws
- Seasonal amusement and recreational businesses that meet certain conditions
Employers should carefully review these exemptions to ensure compliance with Maryland labor laws.
Can Employers Mandate Overtime Work in Maryland?
Yes, employers in Maryland can require employees to work overtime, as long as they follow wage laws.
Non-exempt employees must be paid 1.5 times their regular wage for hours over 40 in a week. It’s important to note though that certain industries, like healthcare, can also have restrictions on excessive overtime.
Overtime for Hourly Rate, Two or More Hourly Rates, and Salaried Employees in Maryland
How Do You Calculate Overtime for Hourly Employees in Maryland?
Calculating overtime for hourly employees in Maryland is fairly straightforward. The steps are outlined below:
If an employee earns $15.00 per hour, that would be their regular rate of pay. |
Multiply the regular pay rate by 1.5. The employee’s overtime rate would be $22.50 ($15 x 1.5). |
Employee worked 47 hours in a week, therefore their overtime hours are seven (47 – 40). |
Multiply the overtime hours by the overtime rate. From the example, the overtime pay would be $157.50 (7 hours x $22.50). |
The regular rate can change if the employee gets extra compensation or incentives during the week.
How Do You Calculate Overtime for Employees with Two or More Hourly Rates in Maryland?
If an employee has multiple jobs with different pay rates in the same week, their regular hourly rate is based on a weighted average.
To calculate this, add up all earnings from the week and divide by the total hours worked. This gives the average hourly rate used for overtime pay.
For example, if an employee worked 48 hours in a week and earned $1200 in total, their overtime pay would be calculated using this average rate.
Divide weekly earnings by the total hours worked. ($1200/48 = $25). |
Multiply the regular pay rate by 1.5 to get the overtime rate. Here, the regular rate is $25, the overtime rate would then be $37.5 ($25 x 1.5). |
The employee worked 48 hours, overtime hours would be eight (48 – 40). |
Multiply the overtime rate by the overtime hours. In this example, the overtime pay would be $300 ($37.5 x 8). |
How Do You Calculate Overtime for Salaried Employees in Maryland?
A salaried employee receives a fixed paycheck, usually on a weekly, biweekly, or monthly basis, regardless of the number of hours they work.
To find their hourly rate, divide their salary by the number of hours it covers. For example, if someone earns $700 per week for a 35-hour workweek, their hourly rate is $20. If they work overtime, they get their regular rate for the first 40 hours and 1.5 times that rate for any extra hours.
For salaries covering longer periods, the weekly equivalent must be calculated first.
- Monthly salary: Multiply by 12, then divide by 52
- Semimonthly salary: Multiply by 24, then divide by 52
For instance, a $1,560 monthly salary or a $780 semimonthly salary for a 40-hour workweek results in an hourly rate of $9. Employers may also calculate based on working days, but the rate must meet minimum wage laws.
Learn more about Maryland Salaried Employee Laws.
Overtime for Complex Pay Structures in Maryland
How Do You Calculate Overtime Pay for Piece Rate Employees in Maryland?
In Maryland, employees paid by piece rate earn based on the number of units they produce rather than an hourly wage.
To calculate overtime for piece-rate employees, their regular hourly rate must first be determined. This is done by adding up their total earnings, including piecework wages, bonuses, and any paid waiting time, and then dividing by the total hours worked in the week.
If an employee works 50 hours, earns $600 from piecework for 46 hours, and receives $10 per hour for 4 hours of waiting time, their total earnings are: $600 (piecework) + $40 (waiting time) = $640 total earnings Divide by total hours worked: $640 ÷ 50 = $12.80 per hour |
Multiply the regular hourly rate by 0.5: $12.80 × 0.5 = $6.40 per hour |
If the employee worked 50 hours, overtime hours = 50 – 40 = 10 hours |
Overtime pay = 10 hours × $6.40 = $64 The total weekly pay, including overtime, would be $640 + $64 = $704. |
Additional Considerations for Maryland Overtime
Is Compensatory Time Instead of Overtime Allowed in Maryland?
Compensatory time (comp time) is allowed in Maryland for state agencies. This lets employees take extra time off instead of getting paid for overtime.
Here are some key rules for comp time in Maryland:
- Employees must choose between comp time and overtime pay before working overtime and inform their employer in writing.
- Comp time must be used within a reasonable period, as long as it doesn’t disrupt business operations and the request was made with enough notice.
- Employees can only accumulate up to 240 hours of comp time. After that, any extra overtime must be paid in money.
- Comp time is calculated the same as overtime pay—1.5 hours of paid time off for every overtime hour worked.
Does Maryland Include Paid Time Off in Overtime Calculations?
No, Maryland does not include paid time off (PTO) in overtime calculations. Only hours actually worked count toward overtime. This means vacation, sick leave, holidays, and other paid leave do not contribute to the total hours used to determine overtime pay.
Important Cautionary Note
This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.
