Md. Code, State Finance and Procurement, Title 18

Md. Code, State Finance and Procurement, Title 18
in effect

Md. Code, State Finance and Procurement § 18-101

(a) In this title the following words have the meanings indicated. (b) “Commissioner” means the Commissioner of Labor and Industry. (c) (1) “Employer” means a contractor or subcontractor that has a State contract for services valued at $100,000 or more. (2) “Employer” does not include a contractor or subcontractor that: (i) employs 10 or fewer employees; and (ii) has a State contract for services valued at less than $500,000. (d) “Living wage” means an hourly wage set as provided under § 18–103 of this title. (e) “Tier 1 area” includes Montgomery County, Prince George’s County, Howard County, Anne Arundel County, Baltimore County, and Baltimore City. (f) “Tier 2 area” includes any county in the State not included in the Tier 1 area.

Md. Code, State Finance and Procurement § 18-102

(a) (1) This title applies to an employee of an employer for the duration of a contract subject to this title if at least one–half of the employee’s time during any workweek relates to a State contract for services or a subcontract for services under a State contract. (2) This title does not apply to an employee of an employer if the employee: (i) is 17 years of age or younger for the duration of a contract subject to this title; or (ii) works less than 13 consecutive weeks for the duration of a contract subject to this title and during that period works full time. (b) This title does not apply to a contract: (1) for services needed immediately to prevent or respond to an imminent threat to public health or safety; (2) with a public service company; (3) with a nonprofit organization; (4) between units; or (5) between a unit and a county or Baltimore City. (c) If the unit responsible for a State contract determines that application of this title would conflict with any applicable federal program requirement, this title does not apply to the contract or program. (d) The head of the unit responsible for a State contract subject to this title shall determine if contract services valued at 50% or more of the total value of the contract will be performed in the Tier 1 area or the Tier 2 area and shall provide that determination on the invitation for a bid.

Md. Code, State Finance and Procurement § 18-103

(a) Except as provided in subsection (c) of this section, an employer subject to this title shall pay each employee covered under this title: (1) at least $11.30 per hour, if State contract services valued at 50% or more of the total value of the contract are performed in the Tier 1 area; or (2) at least $8.50 per hour, if State contract services valued at 50% or more of the total value of the contract are performed in the Tier 2 area. (b) (1) Not later than 90 days after the start of each fiscal year, the Commissioner shall adjust the wage rates required under subsection (a) of this section by the annual average increase or decrease, if any, in the Consumer Price Index for all urban consumers for the Washington Metropolitan Area, or any successor index, for the previous calendar year. (2) If the Commissioner adjusts the wage rates in accordance with paragraph (1) of this subsection, the Commissioner shall publish the new wage rates on the Division of Labor and Industry’s website. (3) On request by any person, the Commissioner shall give the person a printed copy of the new wage rates. (c) If an employer commits in its bid or proposal to provide health insurance to an employee, either directly or through an employee representative, the employer may: (1) certify in its bid or proposal the hourly cost of the employer’s share of the premium for that insurance for each employee; and (2) reduce the wage rate paid under subsection (a) of this section to any employee covered by the insurance by all or part of the hourly cost of the employer’s share of the premium for each employee. (d) The Commissioner may authorize, by regulation, an employer to reduce the wage rates paid under subsection (a) of this section by no more than 50 cents of the hourly cost of the employer’s contribution to an employee’s deferred compensation plan.

Md. Code, State Finance and Procurement § 18-104

(a) The Commissioner shall adopt regulations governing employers subject to this title. (b) The Commissioner may require that an employer keep records and submit reports to the Commissioner that the Commissioner determines necessary for the effective administration and enforcement of this title. (c) The Commissioner every 3 years shall assess the appropriateness of: (1) the measures used to adjust the wage rates under § 18–103(b) of this subtitle to ensure that the measures accurately reflect the wage rates of employees in the Tier 1 area and Tier 2 area of the State; and (2) the placement of counties in the Tier 1 area and Tier 2 area.

Md. Code, State Finance and Procurement § 18-106

(a) During any period in which an employee of the employer is entitled to a wage rate under this title, each employer subject to this title shall post in a prominent and easily accessible place at the work site of an employee described in § 18–102(a) of this title a notice of: (1) the living wage rate; (2) employee rights under this title; and (3) the name, address, and telephone number of the Commissioner. (b) The notice under this section shall be: (1) developed by the Commissioner in English, Spanish, and any other language commonly used by employees at a work site; and (2) (i) on request of an employer, provided without charge to the employer; or (ii) made available for download on the Internet without charge. (c) Subject to § 10–1001 of the State Government Article, the Commissioner may impose on a person that violates this section a civil penalty not exceeding $50 per violation.

Md. Code, State Finance and Procurement § 18-107

(a) Within 30 days after a complaint is filed, the Commissioner shall investigate the complaint in accordance with this title. (b) A written or oral complaint or statement made by an employee under this title is confidential and may not be disclosed to the employer without the consent of the employee. (c) An employer subject to this title shall allow the Commissioner or the Commissioner’s designee access to a work site and payroll records, and allow an opportunity to interview employees for purposes of enforcing this title. (d) (1) Within 30 days after completing an investigation, the Commissioner shall issue an order for a hearing. (2) Within 30 days before the hearing, the Commissioner shall serve, personally or by mail, written notice of the hearing on all interested parties. (3) The notice shall include: (i) a statement of facts disclosed in the investigation; and (ii) the time and place of the hearing. (4) In conducting a hearing, the Commissioner may: (i) subpoena witnesses; (ii) administer oaths; and (iii) compel the production of records, books, papers, and other evidence. (e) (1) Within 30 days after the conclusion of the hearing, the Commissioner shall: (i) issue a determination; and (ii) serve, personally or by mail, each interested party with a copy of the determination. (2) If the Commissioner finds a violation of this title, the Commissioner shall determine the amount of restitution and liquidated damages to be assessed under § 18–108 of this title. (3) On receipt of the determination, the employer shall pay the affected employees the amount due in accordance with the Commissioner’s determination.

Md. Code, State Finance and Procurement § 18-108

If the Commissioner determines that the employer violated a provision of this title or regulations of the Commissioner, the employer shall: (1) pay restitution to each affected employee; and (2) pay to the State liquidated damages of $20 per day for each employee who was paid less than the hourly rate required under this title.

Md. Code, State Finance and Procurement § 18-109

(a) (1) If an employee was paid less than the wage rate required under this title the employee is entitled to sue to recover the amount of the difference between the wage rate required under this title and the amount received by the employee. (2) A determination by the Commissioner that an employer is required to make restitution does not preclude an employee from filing an action under this section. (b) (1) An action under this section is considered to be a suit for wages. (2) A judgment in an action under this section shall have the same force and effect as any other judgment for wages. (c) The failure of an employee to protest orally or in writing the payment of a wage that is less than the wage rate required under this title is not a bar to recovery in an action under this section.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatutesFetched: 10/16/2026

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