Maryland Restaurant Labor Laws (2026): Wages, Tips & Overtime
State and Montgomery County minimum wage, tipped pay, overtime, breaks, and minor rules for Maryland restaurant managers in 2026.
Last reviewed: June 2026Maryland reached a $15 state minimum wage and holds there in 2026, but Montgomery County sets higher rates that vary by employer size and rise on July 1. For restaurants, the tip credit is generous — the tipped cash wage is just $3.63 — but minors are tightly regulated.
This guide covers Maryland’s 2026 wage figures at the state and Montgomery County levels, tipped pay, overtime, breaks, and minor-employment rules. Confirm details with the Maryland Department of Labor before relying on them for payroll.
Maryland restaurant labor laws at a glance (June 2026)
| Standard minimum wage | $15.00/hr state (Montgomery County up to $18.00) |
|---|---|
| Tipped minimum (cash) wage | $3.63/hr state cash wage |
| Tip credit | Permitted — credit makes up the difference to the full minimum |
| Overtime | 1.5× after 40 hours/week (no daily overtime) |
| Meal break (adults) | None required for most adults; 30-min break for minors after 5 hours |
| Minimum age to work | 14 (work permit required for all minors under 18) |
Minimum wage for Maryland restaurant workers
Maryland’s state minimum wage is $15.00 per hour in 2026 and applies to most employers, including restaurants.
Montgomery County is higher and tiered by employer size, with increases on July 1, 2026: $18.00 per hour for large employers (51 or more employees), $16.50 for mid-size employers (11–50), and $15.95 for small employers (10 or fewer). Howard County and Prince George’s County also have separate ordinances, so confirm the rate for your specific county.
Tipped wages and the tip credit in Maryland
Maryland permits a tip credit. The state tipped cash wage is $3.63 per hour, and the tip credit makes up the difference to the $15.00 minimum. In Montgomery County, the tipped cash wage is $4.00, with tips bringing the total to the applicable county tier.
If a tipped employee’s wages plus tips fall short of the full minimum wage, the employer must make up the difference. Managers and owners may not keep employee tips or join a tip pool.
Overtime rules in Maryland
Maryland follows the federal overtime standard: time-and-a-half for hours worked beyond 40 in a workweek. There is no state daily overtime.
For tipped employees, overtime is calculated on the full minimum wage rather than the $3.63 cash wage.
Meal and rest breaks in Maryland
Maryland does not impose a general meal or rest break requirement on most adult restaurant workers. The state’s Healthy Retail Employee Act (the "shift break" law) targets large retail establishments — generally those with 50 or more retail employees — and a standalone sit-down restaurant usually is not a covered retail establishment.
Minors under 18 must receive a 30-minute break after every five consecutive hours of work, in all industries.
Hiring minors at Maryland restaurants
Maryland requires a work permit for all minors under 18, signed by the minor, the employer, and a parent or guardian and submitted online through the state’s youth-employment portal. The minimum age for most restaurant work is 14.
- Hours: no work before 7am or after 7pm (until 9pm June 1–Labor Day).
- School in session: maximum 4 hours on a school day and 23 hours per week.
- School out of session: maximum 8 hours per day and 40 hours per week; combined school and work cannot exceed 12 hours in a day.
- All minors get a 30-minute break after five consecutive hours and are restricted from establishments serving alcohol for on-premises consumption.
Other rules Maryland restaurant managers should know
Montgomery County rates
Montgomery County sets its own minimum wage above the state rate, tiered by employer size and increasing on July 1. In 2026 the large-employer rate is $18.00. Restaurants in the county must apply the county rate, not the $15.00 state floor.
Healthy Retail Employee Act is a retail law
Maryland’s shift-break law applies to large retail establishments, not standalone restaurants. A restaurant attached to or inside a covered retail operation could be affected, but most sit-down restaurants are not covered by it.
Stay compliant without the spreadsheet
Sideworks helps Maryland restaurant managers schedule staff within budget, track labor cost in real time, and keep opening and closing tasks on record — so wage, break, and overtime rules are easier to honor.