BALTIMORE — On July 1, Maryland lowest paid workers will get a 25 cent raise as the state’s minimum wage rises to $8.25, a full dollar higher than the federal rate of $7.25 per hour. This increase is part of the Maryland Minimum Wage Act of 2014 passed by the Maryland General Assembly that will gradually increase the state’s basement wage to $10.10 per hour by 2018.
In January of this year, 77,000 Maryland workers got a raise as the minimum wage in the state rose to eight dollars per hour. An additional 94,000 workers were indirectly affected as higher wages at the bottom of pay scale will push up salaries for those who earn slightly more than the minimum.January’s raise affected 6.5 percent of Maryland’s workforce, creating $84 million in increased wages for the state’s lowest paid workers and is expected to boost consumer spending by $55 million according to research from the Economic Policy Institute.
“This increase is another positive step for Maryland’s working families,” said Charly Carter, executive director of Maryland Working Families. “At the same time, we recognize that the state’s lowest wage workers will not earn the full $10.10 until more than three years from now and that tipped workers will not benefit from this increase because legislators permanently froze their wages at $3.63 per hour.”
Maryland Working Families built the massive Raise Maryland campaign that included more than 60 organizations united to raise the wage. The coalition included 1199SEIU, 32BJ, BRIDGE Maryland, CASA de Maryland, Communities United, Jews United for Justice, NAACP, UFCW 400, Unite HERE Local 7, Moving Maryland Forward Network and many others, along with grassroots support from national groups including Business for a Fair Minimum Wage, Moms Rising, Organizing for America and Progressive Change Campaign Committee. The coalition also benefited from the generous financial support from Rep. John Delaney to bolster the campaign’s social media work.
A full-time canvass knocked on more than 40,000 doors, gathered 8,000 personal letters from voters and generated more than 25,000 petition signatures, not to mention countless phone calls and emails to legislators. Grassroots activity was complemented by a vigorous social media presence, overwhelmingly positive polling, support from more than 180 businesses statewide, several high profile events with state and federal elected officials that generated positive media coverage, radio ads and a steady drumbeat of support in the media for a higher wage.
Key provisions of the Maryland Minimum Wage Act of 2014 were stripped out or changed during consideration of the bill. The full phase-in date was moved from July 1, 2016 to July 1, 2018. A proposal to index the minimum wage so that it would rise during to keep pace with the cost of living was amended out of the bill. Wages for tipped workers were frozen by the House at $3.63 per hour, a measure sought by the restaurant industry. Advocates beat back a broad training wage proposal but a narrower measure was established, allowing employers to pay workers 19 and under a subminimum wage of 85 percent of the minimum wage for the first six months of employment. Restaurants with a gross income of $400,000 are exempted from the higher rate, up from the previous amount of $250,000. Finally, an exemption for amusement parks will permit employers to pay workers 85 percent of the state minimum wage.