Understanding Maryland overtime laws is essential for both employers and employees to ensure proper pay and compliance with state regulations. Under Maryland labor laws, most employees are entitled to overtime pay for working beyond the standard workweek.
Knowing how overtime pay in Maryland works, including who qualifies, how much overtime pay is required, and which employees are exempt, can help avoid costly violations and unpaid wage claims.
This guide explains overtime laws in Maryland, including overtime pay rates, eligibility rules, exemptions, and compensatory time.
Maryland Overtime Laws Summary
| State overtime law | Overtime applies for all hours worked over 40 in a week |
| Overtime pay rate | 1.5 times the employee’s regular hourly rate |
| Maryland minimum wage | $15 per hour |
| Minimum overtime rate | $22.50 per hour |
| Comp time instead of overtime pay | Allowed for certain state employees |
| Salary threshold for exemption | $684 per week |
This Article Covers
- Maryland Overtime Pay Rates
- Overtime Entitlement in Maryland
- Overtime Exemptions in Maryland
- Is Compensatory Time Allowed in Maryland?
- Overtime Pay for Tipped Employees in Maryland
- Overtime Pay for Salaried Employees in Maryland
- Recordkeeping Requirements for Employers in Maryland
- Penalties for Unpaid Overtime Wages in Maryland
- Misclassifying Employees in Maryland to Avoid Overtime Pay
Maryland Overtime Pay Rates
Maryland overtime laws require employers to pay employees 1.5 times their regular hourly rate for all hours worked over 40 in a workweek. This follows both the Maryland Minimum Wage and Overtime Law and federal overtime rules.
As of 2026, the Maryland minimum wage remains $15.00 per hour, making the minimum overtime pay $22.50 per hour for minimum-wage workers.
Maryland also has higher local minimum wages in certain counties, which increase overtime pay accordingly:
| Location | Minimum Wage | Minimum Overtime Wage |
| Montgomery County
For employers with 51 or more employees For employers with 11 to 50 employees For employers with 10 or fewer employees |
$17.65 $16.00 $15.50 |
$26.48 $24.00 $23.25 |
| Howard County
For employers with 15 or more employees For fewer than 15 employees |
$16.00 $15.00 (state’s minimum wage) |
$24.00 $22.50 |
| Prince George’s County | $15.30 | $22.95 |
This means overtime pay in Maryland depends on the highest applicable minimum wage (state or local).
Maryland law entitles employees under 18 to at least 85% of the state minimum wage, which is $12.75 per hour for 2026. This means the minimum overtime wage a minor must receive is $19.13 per hour.
What counts as hours worked for overtime in Maryland?
Under Maryland overtime laws, only hours actually worked count toward overtime. Work time in Maryland includes time spent performing job duties or when an employee is required on-site or on duty. Work hours do not include leave hours, such as vacation, sick time, and holiday, for overtime purposes.
Overtime Entitlement in Maryland
Most employees are entitled to overtime pay when they work more than 40 hours in a workweek under Maryland overtime laws.
However, there are important exceptions: Agricultural workers are eligible for overtime only after working 60 hours in a week.
Overtime Exemptions in Maryland
Under Maryland overtime laws, certain employees are not entitled to overtime pay. Exempt categories include:
- Immediate family members of the employer
- Some agricultural workers
- Executive, administrative, and professional employees earning at least $684 per week
- Volunteers for educational, charitable, religious, or nonprofit groups
- Employees under age 16 working fewer than 20 hours weekly
- Outside sales representatives
- Commission-based employees
- Trainees in public school special education programs
- Non-administrative employees of organized camps
- Food and drink establishments earning under $400,000 annually (on‑premises sales)
- Drive‑in theaters
- Businesses handling the first canning, packing, or freezing of fruits, vegetables, poultry, or seafood
- Taxicab drivers
- Automobiles, farm equipment, trailers, or trucks salespersons and servicemen
- Workers in nonprofit concerts, theater shows, musical festivals, or similar events
- Employees subject to railroad requirements under the U.S. Department of Transportation, the Federal Motor Carrier Act, and the Interstate Commerce Commission
- Employees of certain seasonal amusement and recreational businesses
Is Compensatory Time Allowed in Maryland?
In accordance with the federal Fair Labor Standards Act (FLSA), non-exempt state employees may receive compensatory time instead of overtime pay.
Before performing approved overtime work, the employee must decide whether to receive overtime pay or compensatory time (if offered), and provide written notice of that choice to the appropriate supervisor.
If the employee chooses to receive compensatory time, the appointing authority must ensure comp time is provided at 1.5 hours for each hour worked beyond 40 hours in a workweek.
Employees may accumulate up to 240 hours of compensatory time. However, those engaged in public safety, emergency response, or seasonal activities may accrue up to 480 hours. Once the applicable limit is reached, employees must be paid for any additional overtime worked.
At any point, an appointing authority may pay a nonexempt employee for accrued compensatory leave at the 1.5x rate.
Overtime Pay for Tipped Employees in Maryland
Employees earning more than $30 per month in tips are classified as tipped employees under the Maryland Minimum Wage and Overtime Law.
Employers can pay these tipped employees a minimum cash wage of $3.63 per hour and apply a tip credit. However, the employee’s total earnings (cash wage + tips) must equal at least the state minimum wage rate, which is $15.00 per hour currently.
Restaurant employers who use a tip credit must give workers wage statements showing tip credits and effective hourly rates.
Overtime must be calculated using the full minimum wage, not just the lower cash wage, to ensure proper overtime compensation.
Learn more from our extensive guide on how to calculate overtime in Maryland.
Overtime Pay for Salaried Employees in Maryland
Salaried employees may still qualify for overtime unless they meet the exemption criteria.
To be exempt, salaried employees in Maryland must meet the job duties exemption criteria to be classified as executive, administrative, or professional, and receive a salary of at least $684 per week.
If these conditions are not met, salaried employees are entitled to overtime pay in Maryland at 1.5 times their regular hourly rate. Employers should calculate overtime correctly by converting the employee’s salary into an hourly rate. Tools like Jibble’s overtime calculator can simplify this process.
Recordkeeping Requirements for Employers in Maryland
The Maryland Department of Labor requires employers to maintain employee records for at least three years, including:
- Hours worked daily and weekly
- Wages paid
- Overtime earnings
- Employee details
Accurate recordkeeping is essential for compliance. Using Jibble’s time tracking system can help Maryland employers automate this process and reduce the risk of violations.
Penalties for Unpaid Overtime Wages in Maryland
Employees who do not receive proper wages, including overtime pay, can file a wage claim with the Maryland Department of Labor. Employees can also choose to pursue a court case for violations of the Maryland Wage Payment Law.
If an employer intentionally fails to pay an employee’s wages without a valid reason, Maryland law can impose criminal penalties on them.
Learn more about labor law violation penalties in Maryland.
Misclassifying Employees in Maryland to Avoid Overtime Pay
Under Maryland overtime laws, employee misclassification happens when an employer incorrectly classifies a worker as an independent contractor instead of an employee.
This can happen unintentionally, due to misunderstanding Maryland labor laws, or intentionally, to reduce business costs by avoiding paying:
- Overtime pay in Maryland
- Unemployment insurance taxes
- Payroll taxes
- Workers’ compensation insurance
As a result, misclassified workers may lose access to important benefits such as paid sick leave or vacation time, health insurance, and retirement benefits.
Even if a worker is labeled as an independent contractor, that label alone does not determine their legal status. Under Maryland overtime law, classification depends on the actual working relationship, not just a contract or job title.
Misclassification is especially monitored under Maryland’s Workplace Fraud Act, which focuses on industries like construction and landscaping, where violations are more common. If an employer incorrectly classifies a worker, they may also fail to pay overtime wages for hours worked over 40, leading to violations of overtime regulations in Maryland.
Employers should carefully review worker classifications and ensure compliance.
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.
