In this section the following words have the meanings indicated. “Employer” includes a governmental unit. “Small employer” means an employer that employs 14 or fewer employees. Except as provided in subsection (d) of this section and § 3–414 of this subtitle, each employer shall pay: to each employee who is subject to both the federal Act and this subtitle, at least the greater of: the minimum wage for that employee under the federal Act; or the State minimum wage set under subsection (c) of this section; and to each other employee who is subject to this subtitle, at least the greater of: the highest minimum wage under the federal Act; or the State minimum wage set under subsection (c) of this section. Except as provided in paragraph (2) of this subsection, the State minimum wage rate is: for the 12–month period beginning January 1, 2023, $13.25 per hour; and beginning January 1, 2024, $15.00 per hour. The State minimum wage rate for a small employer is: for the 12–month period beginning January 1, 2023, $12.80 per hour; and beginning January 1, 2024, $15.00 per hour. An employer may pay an employee a wage that equals a rate of 85% of the State minimum wage established under this section if the employee is under the age of 18 years.