The first step of a four-year process to raise the local minimum hourly wage to $11.50 per hour will go into effect today and result in an increase from the national rate of $7.25 per hour to $8.40.
Thanks to a bill passed by the Montgomery County Council in November 2013, the minimum wage will increase again, to $9.55 per hour, on Oct. 1, 2015, then to $10.75 on Oct. 1, 2016, and to $11.50 on Oct. 1, 2017. The law applies to employers with at least two workers in the county.
The increases are part of a regional effort to address the rising cost of living. Prince George’s County and Washington, D.C., enacted similar laws to raise the minimum wage that go into effect this year. The county’s minimum-wage increases are larger than the state hike, which will increase to $8 per hour in January and reach $10.10 by mid-2018.
The law doesn’t apply to every employee. There are exemptions for workers younger than 19 who work fewer than 20 hours per week and for tipped workers such as waiters who are required to be paid at least half of the state minimum wage.
County Executive Isiah Leggett and council members hailed the legislation in a statement, saying the increase will help low-income workers feel more financially secure.
“I believe that a higher minimum wage for Montgomery County is justified, given the higher cost of living in the county as compared to the rest of the state,” Leggett said in a statement.
Councilmember Marc Elrich, as the lead sponsor of the bill, led the local effort to enact the graduated increase to $11.50 an hour by 2017.
“Three local jurisdictions within a stone’s throw of the U.S. Capitol, which is mired in gridlock, were able to come together and take a regional approach to making life better for our working families,” Elrich said in a statement. “I am proud to have played a key role in this regional, grassroots effort.”
Today’s increase means the average worker earning minimum wage will earn about $2,400 more annually based on a 40-hour work week, according to the county.
