The minimum wage in Montgomery County will increase on July 1 to accommodate local inflation, as mandated by county law. The rate for large employers with 51 or more employees will increase to $17.15 per hour, while the rate for mid-sized employers with 11-50 employees will increase to $15.50 per hour.
Small employers with 10 or fewer employees will still be required to pay their workers a rate of $15 per hour. This rate will remain in effect for the next 12 months, according to a press release.
Following a change in Maryland state law, the minimum wage rate for small businesses was increased to $15 per hour on Jan. 1.
The updated rates for large and mid-sized businesses are calculated based on changes in the consumer price index for all urban wage earners and clerical workers in the Washington, D.C.-Arlington-Alexandria area in the past year. The consumer price index “measures price change experienced by urban consumers,” according to the U.S. Bureau of Labor Statistics.
In 2017, County Executive Marc Elrich sponsored legislation that gradually increased the minimum wage to $15 per hour in phases based on business size. Once it reached $15, the rate was indexed to inflation.
As economic indicators show that the county is still recovering from the pandemic, an increase in minimum wage rates may benefit Montgomery County residents.
“Ensuring that individuals and families can afford rent, food, health care and transportation is essential. No one working full-time should struggle to put a roof over their head or food on their table,” Elrich stated in a press release. “This extra income can make a meaningful difference for many families, helping them to better meet their needs and improve their quality of life.”
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