Minimum Wage Rises to $18 in Montgomery County, $18.40 in DC

Washington, D.C., lifted its minimum wage from $17.95 to $18.40 an hour for all employers. The tipped-employee base wage rose from $10.00 to $10.30. Employers must make up the difference if tips plus the base wage fall short of the full minimum. The 2.4% increase reflects the CPI-U for the Washington metro area, as required by the Fair Shot Minimum Wage Amendment Act of 2016.

Employers face several compliance obligations. Payroll systems must reflect the correct rate for each jurisdiction where employees work, said Brian Markovitz, a principal at law firm Joseph Greenwald & Laake. If the wage increase falls in the middle of a pay period, wages must be prorated accurately. Washington employers must display updated minimum wage posters from the Department of Employment Services in a visible area at each worksite, as required by the Wage Theft Prevention Amendment Act. Businesses with remote or multi-jurisdiction workers need to confirm which local wage law applies based on where the work is performed, Markovitz said. Tipped-employee compensation also requires review to ensure total earnings meet the full minimum wage.

Employees should review pay stubs for hours worked on or after July 1 and contact their employer or the appropriate labor agency if pay does not match the applicable rate, Markovitz said. Higher local minimums may apply even where the state rate is lower. Workers who believe they are not being paid correctly can file a complaint with the Washington Office of Wage-Hour for Employees or the Maryland Employment Standards Service.

Markovitz represents whistleblowers in False Claims Act cases and individuals in employment litigation involving wrongful termination, wage and hour claims, and retaliation. He can be reached at bmarkovitz@jgllaw.com. Kayla Schwein, a rising 3L at American University Washington College of Law, contributed. She can be reached at KSchwein@jgllaw.com.