Maryland has clear rules about overtime pay. If you work more than 40 hours a week, you may be owed extra money. This guide explains your rights in plain language.
Whether you’re an employee or employer, knowing these laws protects you. Read on to learn who qualifies, how much overtime pays, and what to do if you’re not paid fairly.
What Is Overtime Pay?
Overtime pay is extra money you earn when you work more than 40 hours in one week. In Maryland, overtime pays 1.5 times your regular hourly rate. This is often called “time and a half.”
For example, if you earn $15 per hour, your overtime rate is $22.50 per hour. You get this rate for every hour worked over 40 in a single workweek.
Basic Maryland Overtime Rules
The 40-Hour Rule
Maryland follows the federal Fair Labor Standards Act (FLSA). You earn overtime after working more than 40 hours in a workweek. Maryland does not count daily hours for overtime. Working 10 hours in one day does not trigger overtime by itself. Only the total weekly hours matter.
Your Overtime Rate
Your overtime rate equals 1.5 times your regular pay. If you earn $20 per hour, overtime pays $30 per hour. This applies to all non-exempt employees across the state.
Who Qualifies for Overtime?
Non-Exempt Employees
Most hourly workers in Maryland qualify for overtime. These workers are called “non-exempt.” If you work more than 40 hours in a week, your employer must pay you overtime.
Part-time workers also qualify. If a part-time employee works over 40 hours in one week, they earn overtime too.
Exempt Employees (Who Does NOT Get Overtime)
Some workers do not qualify for overtime. These workers are called “exempt.” Maryland law and federal law define which workers are exempt.
Salaried professionals may be exempt if they earn at least $684 per week ($35,568 per year). They must also perform executive, administrative, or professional duties.
Note: Maryland does not recognize the federal “highly compensated employee” exemption. Some workers exempt under federal law may still qualify for overtime under Maryland state law.
Special Overtime Rules for Certain Industries
Care Facilities (48-Hour Rule)
Some workers have a different overtime threshold. Employees at on-site care facilities (nursing homes, assisted living, etc.) earn overtime after 48 hours per week, not 40. This rule also applies to bowling establishment employees.
Agricultural Workers
Farm workers may have different overtime rules. Some qualify after 40 hours (FLSA-covered). Others may qualify after 60 hours per week. Some farm workers employed on small family farms may not qualify at all. Check with the Maryland Department of Labor for your specific situation.
Nurses and Mandatory Overtime
Maryland protects nurses from mandatory overtime in certain situations. Employers cannot force nurses to work overtime against their will under state law. This protection was put in place to protect patient safety and worker health.
Firefighters
As of October 1, 2025, a new Maryland law (SB 124) clarified overtime rules for firefighters. All regularly scheduled hours must now count toward overtime calculations, even during weeks when the firefighter used leave.
Maryland’s Minimum Wage and How It Affects Overtime
Statewide Minimum Wage
Maryland’s minimum wage is $15.00 per hour as of January 1, 2024. This rate applies to all employers statewide. Because overtime is based on your regular rate, the minimum overtime rate is $22.50 per hour.
County-Specific Wages (and Overtime)
Some counties have higher minimum wages. A higher minimum wage means a higher minimum overtime rate.
Montgomery County (as of July 1, 2025):
- Large employers (51+ employees): $17.65/hr → overtime starts at $26.48/hr
- Mid-size employers (11–50 employees): $16.00/hr → overtime starts at $24.00/hr
- Small employers (10 or fewer): $15.50/hr → overtime starts at $23.25/hr
Howard County (as of January 1, 2026):
- $16.00/hr for most employees → overtime starts at $24.00/hr
Prince George’s County (as of January 1, 2026):
- $15.30/hr → overtime starts at $22.95/hr
Always apply the highest rate that applies to you — federal, state, or county.
The New Salary Threshold for Exempt Employees (2025 Update)
Maryland passed HB 1438, which took effect July 1, 2025. This law raised the salary threshold for exempt employees.
Starting July 1, 2025, workers in executive, administrative, or professional roles must earn at least $1,128 per week to be exempt from overtime under Maryland state law. This is higher than the federal threshold of $684/week.
Starting March 1, 2026, Maryland’s Commissioner of Labor will announce annual updates to this rate. The rate is tied to the Consumer Price Index for the Washington-Baltimore metro area.
This means more Maryland workers may now qualify for overtime. If your salary falls below these thresholds, you may be entitled to overtime pay even if your employer calls you “exempt.”
Overtime and Taxes: What’s New in 2025
Federal Overtime Tax Deduction
The One Big Beautiful Bill Act was signed on July 4, 2025. It created a new federal tax deduction for overtime pay. This deduction is available for tax years 2025 through 2028.
If you work overtime covered by the FLSA, you can deduct the “premium” portion of your overtime from your federal taxes. For time-and-a-half pay, that equals one-third of your total overtime pay.
Example: If you earned $9,000 in overtime pay, you could deduct $3,000 from your federal taxable income.
Maryland State Taxes
This federal deduction does not apply to your Maryland state taxes. As of February 2026, the Maryland Comptroller has confirmed the deduction does not flow through to state returns. You still pay Maryland income tax on all overtime wages.
Penalties for Overtime Violations
What Employers Face
Employers who break overtime laws face serious consequences. They must pay all unpaid overtime wages. In willful violation cases, they may owe double the unpaid wages as liquidated damages.
Employers can also face fines from state and federal agencies. Repeated violations lead to higher penalties. Employees can also sue their employer and recover attorney’s fees.
Misclassification Penalties
Employers who wrongly classify employees as exempt face steep fines. Each misclassified employee counts as a separate violation. These fines can add up quickly.
How Long Do You Have to File a Claim?
Time limits apply to overtime claims in Maryland.
Under Maryland state law, you generally have 3 years to file a wage claim from when the wages were earned. Under the federal FLSA, the limit is typically 2 years. If the violation was willful, the federal limit extends to 3 years.
Do not wait. File your claim as soon as possible to protect your rights.
What to Do If You’re Not Being Paid Overtime
Step 1: Document Your Hours
Start tracking your hours carefully. Save pay stubs. Write down your start and end times each day. Keep records of any communications about your pay.
Step 2: Talk to Your Employer
Bring your records to your employer or HR department. Ask them to review your pay. Sometimes mistakes happen and can be fixed quickly.
Step 3: File a Complaint
If your employer doesn’t fix the problem, file a formal complaint. You can contact:
Maryland Department of Labor — Employment Standards Service (ESS)
- Address: 10946 West Golden Drive, Suite 160, Hunt Valley, MD 21031
- Phone: 410-767-2357
- Email: [email protected]
- Website: labor.maryland.gov/labor/wages
You can also file a complaint with the U.S. Department of Labor at dol.gov.
Step 4: Consult an Attorney
An employment attorney can review your case for free or on contingency. Contingency means they only get paid if you win. Many overtime attorneys offer free consultations.
Common Overtime Violations to Watch For
Knowing the most common violations helps you protect yourself.
Misclassification happens when employers call you exempt when you’re not. Being paid a salary alone does not make you exempt. Your job duties must also meet legal standards.
Off-the-clock work is another common issue. If you work during lunches, before shifts start, or after shifts end, that time must count toward your overtime.
Bonus and commission errors can affect your overtime rate. Certain bonuses must be included when calculating your overtime rate. If your employer only uses your base hourly rate, they may owe you more.
Independent contractor misclassification is serious. Some employers call workers “contractors” to avoid paying overtime. Just having a contract doesn’t make you a contractor. Your actual duties and work relationship determine your sta
Frequently Asked Questions
Does Maryland pay overtime after 8 hours in a day?
No. Maryland only counts weekly hours, not daily hours. Overtime starts after 40 hours in a workweek, not after 8 hours in a single day.
Can my employer make me work overtime?
Yes, employers can require overtime in most cases. They just have to pay you the correct overtime rate. The only exception is nurses, who have special protections under Maryland law.
What if I work two jobs for the same employer?
If the same employer counts all your hours, they must add together your hours from both jobs. If the combined total exceeds 40 hours, you earn overtime.
Am I owed overtime if I work unauthorized hours?
Yes. Maryland law requires employers to pay for all hours worked, even if overtime was not approved. Your employer can discipline you for working unauthorized overtime, but they cannot withhold your pay.
Can my employer retaliate if I file an overtime complaint?
No. Retaliation for filing an overtime claim is illegal under both state and federal law. If your employer demotes, fires, or punishes you for asking about overtime, that is a separate legal violation.
Final Thoughts
Maryland’s overtime laws protect workers from being underpaid for long hours. The rules are clear: most employees earn 1.5 times their regular rate after 40 hours per week.
Recent updates in 2025 raised salary thresholds for exempt employees and added a new federal tax deduction for overtime pay. These changes benefit many Maryland workers.
If you believe you are owed unpaid overtime, act quickly. Document your hours, talk to your employer, and file a complaint if needed. The Maryland Department of Labor is available to help.
Knowing your rights is the first step to protecting them.
References
- Maryland Wage and Hour Law (MWHL) — Labor and Employment Article, Title 3, Subtitle 4, Annotated Code of Maryland: mgaleg.maryland.gov
- Maryland Department of Labor — Employment Standards Service: labor.maryland.gov/labor/wages
- Maryland People’s Law Library — Wage Laws: peoples-law.org/wage-laws
- Maryland HB 1438 (2025) — Overtime Exemption Update: billtrack50.com
- U.S. Department of Labor — FLSA Overtime Rules: dol.gov/agencies/whd/overtime
- IRS Notice 2025-69 — Overtime Tax Deduction Guidance: irs.gov
- RemoteLaws.com — Maryland Overtime Laws 2026 (verified February 28, 2026): remotelaws.com
This article is for informational purposes only and does not constitute legal advice. For advice about your specific situation, consult a licensed Maryland employment attorney.
