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<section number="13A-117" name="Payment of minimum wage required" law="code" slug="sec-13a-117" node_id="PTIITI17PULOLAPRGECOMA_SUBTITLE_13ALACO_DIV2MIWA_S13A-117PAMIWARE">
  <level label="a">
    <text>Except as provided in the Maryland Wage and Hour Law, as of October 1, 2014, the minimum wage required to be paid to any employee by any employer in Prince George's County shall be $8.40 per hour, or the minimum wage pursuant to the Maryland Wage and Hour Law or the Fair Labor Standards Act, whichever is greater. The term "employer" includes a person who acts directly or indirectly in the interest of another employer with an employee and includes a governmental unit.</text>
  </level>
  <level label="b">
    <text>As of October 1, 2015, the minimum wage required to be paid to any employee by any employer in Prince George's County shall be $9.55 per hour, or the minimum wage pursuant to the Maryland Wage and Hour Law or the Fair Labor Standards Act, whichever is greater.</text>
  </level>
  <level label="c">
    <text>As of October 1, 2016, the minimum wage required to be paid to any employee by any employer in Prince George's County shall be $10.75 per hour, or the minimum wage pursuant to the Maryland Wage and Hour Law or the Fair Labor Standards Act, whichever is greater.</text>
  </level>
  <level label="d">
    <text>As of October 1, 2017, the minimum wage required to be paid to any employee by any employer in Prince George's County shall be $11.50, or the minimum wage pursuant to the Maryland Wage and Hour Law or the Fair Labor Standards Act, whichever is greater.</text>
  </level>
  <level label="e">
    <text>Exclusions. The County minimum wage requirements shall not apply to an employee who:</text>
    <level label="1">
      <text>is exempt from the minimum wage requirements of the Maryland Wage and Hour Law or the Fair Labor Standards Act; or</text>
    </level>
    <level label="2">
      <text>is an individual under the age of 19 years and is employed no more than twenty (20) hours in a week.</text>
    </level>
  </level>
  <level label="f">
    <text>Tipped wages. The computation of tipped wages for the minimum wage required under this Section shall be the same as the manner of computation of tipped wages in Section 3-419, Labor and Employment Article, Annotated Code of Maryland (the Maryland Wage and Hour Law).</text>
  </level>
  <level label="g">
    <text>Minimum Wage Index.</text>
    <level label="1">
      <text>Subject to subsection (h) of this section and except as provided in paragraph (3) of this subsection, for the 12-month period beginning January 1, 2026, and each subsequent 12-month period, the minimum wage rate is the minimum wage rate in effect for the immediately preceding 12-month period and the lesser of:</text>
      <level label="A">
        <text>The average percentage growth in the Consumer Price Index for the immediately preceding 12-month period, as determined by the Director of Finance under paragraph (2); or</text>
      </level>
      <level label="B">
        <text>five percent (5%).</text>
      </level>
    </level>
    <level label="2">
      <text>Beginning September 1, 2025, and each September 1 thereafter, the Director of Finance shall determine and announce the average percentage growth, if any, in the Consumer Price Index based on the immediately preceding 12-month Period for which data is available on September 1. The Director of Finance shall utilize the Consumer Price Index for All Urban Consumers (CPI-U) for the Washington-Arlington-Alexandria area published by the Federal Bureau of Labor Statistics.</text>
    </level>
    <level label="3">
      <text>If the Director of Finance determines that there is a decline or no growth in the Consumer Price Index, the minimum wage rate shall remain the same as the rate that was in effect for the immediately preceding 12-month period.</text>
    </level>
  </level>
  <level label="h">
    <text>Temporary Suspension of Minimum Wage Indexing Due to Negative Employment Growth.</text>
    <level label="1">
      <text>Subject to paragraph (4) of this subsection, on or before September 1, 2025, and September 1 each year thereafter, the Director of Finance shall determine whether the seasonally adjusted total employment from the Current Employment Statistics series as reported by the U.S. Bureau of Labor Statistics for the most recent 6-month period is negative as compared with the immediately preceding 6-month period and shall inform the County Council.</text>
    </level>
    <level label="2">
      <text>Subject to paragraph (4) of this subsection, the County Council may temporarily suspend an increase to the minimum wage rate specified under subsection (g) of this section if the County Council determines under paragraph (1) of this subsection that the seasonally adjusted total employment is negative.</text>
    </level>
    <level label="3">
      <text>If the seasonally adjusted total employment is negative, the County Council may consider the performance of County revenues in the previous 6 months, as reported by the Director of Finance, in determining whether to temporarily suspend an increase to the minimum wage rate specified under subsection (g) of this section.</text>
    </level>
    <level label="4">
      <text>If the County Council temporarily suspends an increase to the minimum wage rate specified under subsection (g) of this section:</text>
      <level label="A">
        <text>the minimum wage rate in effect for the period beginning the following January 1 shall remain the same as the rate that was in effect for the immediately preceding 12-month period;</text>
      </level>
      <level label="B">
        <text>the remaining minimum wage rates specified in subsection (g) of this section shall take effect 1 year later than the date specified; and</text>
      </level>
      <level label="C">
        <text>the County Council shall notify the Director of Finance that the minimum wage rate increase for the period beginning the following January 1 is suspended for 1 year.</text>
      </level>
    </level>
  </level>
  <level label="i">
    <text>Direct Support Professionals. In order to ensure that the wages for Direct Support Professionals are commensurate with the professional positions that they occupy, and to ensure that the County is financially capable of funding the Direct Support Professionals Wage Supplement, except as provided in paragraph (2), the County shall include in the annual operating budget an amount determined as follows:</text>
    <level label="1">
      <text>For every percentage increase in the minimum wage rate determined under subsection (g), reduced by the amount of the percentage increase in the State Direct Support Professionals reimbursement rate for the fiscal year, the County will increase the total Direct Support Professionals Wage Supplement by such percentage multiplied by the prior calendar year's total wages and employee related expenses for County Direct Support Professionals reported to the State.</text>
    </level>
    <level label="2">
      <text>Notwithstanding the provisions of paragraph (1), above, if the County Council is concerned about the Spending Affordability Committee Report and impacts on the County General Fund, the County Council may take any of the following actions:</text>
      <level label="A">
        <text>reduce the increase in the minimum wage rate determined under Subsection (g) by up to two percent (2%); or</text>
      </level>
      <level label="B">
        <text>reduce or freeze the increase of total Direct Support Professionals Wage Supplement.</text>
      </level>
    </level>
  </level>
</section>
