<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".19" citation="COMAR 09.12.41.19" title_num="09" subtitle_num="12" chapter_num="41" heading="Regular Hourly Rate.">
  <paragraph num="A.">
    <text>“Regular hourly rate” means the usual hourly rate.</text>
  </paragraph>
  <paragraph num="B.">
    <text>The regular hourly rate is determined by dividing the total compensation for employment in any workweek by the total number of hours worked in that workweek.</text>
  </paragraph>
  <paragraph num="C.">
    <text>Any commission or bonus, if:</text>
    <paragraph num="(1)">
      <text>Paid weekly, is added to the employee's total compensation in order to determine the regular hourly rate;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Paid other than weekly, is allocated to the particular workweek in which it was earned; or</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Allocation is not practical, may be apportioned in equal amounts to each workweek during the period in which it was earned.</text>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>Gratuities and Tips.</text>
    <paragraph num="(1)">
      <text>Compensation derived from tips in accordance with Labor and Employment Article, §3-419, Annotated Code of Maryland, is allocated to the particular workweek in which the employee is a tipped employee.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>A compulsory monetary charge for service, even if retained by the employee, is not a tip.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>A tipped employee’s wages must equal at least the minimum wage when direct wages and tips are combined.</text>
    </paragraph>
    <paragraph num="(4)">
      <text>A tipped employee who spends more than 20 percent of the employee’s work time performing non-tip producing duties directly related to their tipped occupation shall be paid by the employer at least the minimum wage for that time.</text>
    </paragraph>
  </paragraph>
  <paragraph num="E.">
    <text>The following amounts are not included in determining the regular hourly rate:</text>
    <paragraph num="(1)">
      <text>Sums paid as a gift or reward for service, the amounts of which are not measured by or dependent on hours worked, production, or efficiency;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Payments for occasional periods when no work is performed, such as vacation, sick leave, holidays, or jury duty;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Payments for reimbursement purposes, such as travel, equipment, or meal expenses;</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Payments made in recognition of services if the payment is:</text>
      <paragraph num="(a)">
        <text>Within the sole discretion of the employer and not pursuant to any agreement, or</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Made pursuant to a bona fide profit-sharing trust, savings, or thrift plan;</text>
      </paragraph>
    </paragraph>
    <paragraph num="(5)">
      <text>Contributions irrevocably made by an employer to a trustee or third person under a bona fide retirement, insurance, or similar employee benefit plan;</text>
    </paragraph>
    <paragraph num="(6)">
      <text>Extra compensation paid at a premium rate pursuant to a statutorily valid employer-employee agreement; and</text>
    </paragraph>
    <paragraph num="(7)">
      <text>Tips received by the employee in excess of the tip credit.</text>
    </paragraph>
  </paragraph>
</regulation>