Plain Text Law

Chapter 41. Wage and Hour Law

Regulation .01 Administrative Capacity.Copy Citation

“Administrative capacity” has the meaning stated in 29 CFR §541.200 et seq.

Regulation .02 Agriculture.Copy Citation

“Agriculture” means work performed by a farmer or on a farm as an incident to or in conjunction with farming operations, such as:
A.
The cultivation and tillage of soil, including grading, rock removal, building terraces, irrigation, and fertilization;
B.
The production, growing, cultivation, or harvesting of agricultural or horticultural products or commodities;
C.
Breeding, fattening, feeding, or the general care of livestock, bees, fur-bearing animals whose fur has marketable value, or poultry, including poultry hatchery operations;
D.
Dairying, including:
(1)
Caring for and milking of milk-giving animals,
(2)
Containing, cooling, and storage of milk when done on the farm, and
(3)
Farm-based manufacturing operations directly and closely related to dairying, such as separating cream or making butter;
E.
Farming activities on experimental farms or nurseries, or in greenhouses or mushroom cellars; or
F.
Duties directly and closely related to farming operations, including the:
(1)
Preparation of products or commodities for market, or
(2)
Delivery of products or commodities to storage, market, or carriers for transportation to market.

Regulation .03 Complaints.Copy Citation

Before the Commissioner of Labor and Industry initiates an investigation, the Commissioner may require the employee to submit a written complaint.

Regulation .04 Directly and Closely Related.Copy Citation

“Directly and closely related” has the meaning stated in 29 CFR §541.703 et seq.

Regulation .05 Executive Capacity.Copy Citation

“Executive capacity” has the meaning stated in 29 CFR §541.100 et seq.

Regulation .06 First Processing.Copy Citation

A.
“First processing” means the procedure by which the form of a product or commodity is changed from its original state.
B.
“First processing” does not refer to an employer who acts as a wholesaler, broker, factor, or other middleman in the chain from producer to consumer.

Regulation .07 Food and Drink Establishment.Copy Citation

A.
“Annual gross income”:
(1)
Means the total of all receipts from all sales made during the preceding four calendar quarters; and
(2)
Is the sole basis for determining the annual gross income for all subsequent quarters.
B.
“Cafe” means a combination of a restaurant and a tavern.
C.
“Drive-in” means an establishment:
(1)
Which sells prepared food items for consumption on the premises or in the purchaser's car;
(2)
Which is characterized by a parking lot adjacent to the establishment; and
(3)
To which purchasers generally drive to consummate a purchase.
D.
“Restaurant” means an establishment which:
(1)
Is primarily engaged in selling and serving prepared food and beverages for consumption on the premises;
(2)
Provides characteristic employee services and dining facilities; and
(3)
Contains physical and functional equipment and facilities required for the consumption of a meal.
E.
“Similar establishment” means an establishment which has the characteristics of a restaurant, drive-in, tavern, or cafe.
F.
“Tavern” means an establishment whose primary sales consist of alcoholic beverages for consumption on the premises on a drink-by-drink basis.

Regulation .08 Gasoline Service Station.Copy Citation

A.
“Gasoline service station” means an establishment primarily engaged in selling gasoline and lubricating oils to the general public.
B.
A gasoline service station may be part of a larger enterprise which also repairs automobiles.
C.
An establishment which derives the greater part of its net income from the sale of goods other than gasoline, lubricating oils, and related services is not a gasoline service station.

Regulation .09 Hotel or Motel.Copy Citation

A.
“Hotel” or “motel” for purposes of Labor and Employment Article, §3-415, Annotated Code of Maryland, means an establishment engaged primarily in providing lodging or lodging and meals to the general public.
B.
“Hotel” or “motel” includes an apartment or residential establishment that derives more than half of its annual gross income from providing transient guests with lodging or lodging and meals.
C.
“Hotel” or “motel” does not mean an establishment whose income is derived primarily from providing bedroom and kitchen facilities for leased periods of longer than 3 months.

Regulation .10 Hours of Work.Copy Citation

A.
“Hours of work” means the time during a workweek that an individual employed by an employer is required by the employer to be on the employer's premises, on duty, or at a prescribed workplace.
B.
Meal periods are included in computing hours of work if the individual is required to perform any duties during the meal period.
C.
Travel time is included in computing hours of work if the individual:
(1)
Travels during regular work hours;
(2)
Travels from one worksite to another; or
(3)
Is called out after work hours in emergency situations.

Regulation .11 Immediate Family.Copy Citation

A.
“Immediate family” means an employer's parent, spouse, child, brother, sister, grandchild, or grandparent who:
(1)
Resides with the employer; and
(2)
Enjoys the same privileges as other members of the family.
B.
“Immediate family” does not include anyone living outside the employer's household, except the employer's parent, spouse, or child.
C.
“Child” means a natural child, adopted child, or stepchild but does not mean the spouse of that child.

Regulation .12 Mechanic.Copy Citation

A.
“Mechanic” means an employee whose primary function is to put automobiles, trailers, trucks, or farm machinery in working order by making necessary repairs or adjustments.
B.
The following employees are not mechanics:
(1)
An employee whose primary duty is to wash, clean, polish, lubricate packing wheel bearings, change oil or oil filters, change tires, paint, perform carpentry, dispatch, or install or repair seat covers;
(2)
An employee whose primary duty is to record a vehicle's condition or to write a report detailing necessary parts and mechanical work.

Regulation .13 Outside Salesman.Copy Citation

“Outside salesman” has the meaning stated in 29 CFR §541.500 et seq.

Regulation .14 Overtime Compensation.Copy Citation

A.
An employee subject to the Minimum Wage Act of Maryland shall be paid overtime compensation for each hour worked in excess of 40 hours per workweek. This includes the following:
(1)
All hours worked by an employee for an employer are included, even though the employee may perform work in two or more unrelated jobs;
(2)
If the total workweek hours do not exceed 40, an employee is not entitled to overtime compensation for hours worked in excess of 8 on any day, including Saturday, Sunday, and holidays.
B.
Compensation for hours worked in excess of 40 hours per workweek is computed at 1-1/2 times the regular hourly rate at which the employee is employed. This includes the following:
(1)
The regular hourly rate may not be less than the statutory minimum;
(2)
If the employee's regular hourly rate is higher than the statutory minimum, overtime compensation is computed at 1-1/2 times the higher rate.

Regulation .15 Packing.Copy Citation

“Packing” means the physical operation by which a product or commodity is placed in a container which is then closed and sealed.

Regulation .16 Partsman.Copy Citation

A.
“Partsman” means an employee whose primary function is to:
(1)
Sell or dispense parts for automobiles, trailers, trucks, or farm machinery; or
(2)
Requisition, stock, or dispense those parts for an establishment's mechanical service department.
B.
A partsman's duties may include incidental clerical or cleaning work necessary to keep stockrooms, bins, and shelves in order.

Regulation .17 Professional Capacity.Copy Citation

“Professional capacity” has the meaning stated in 29 CFR §541.300 et seq.

Regulation .18 Reasonable Cost.Copy Citation

A.
The reasonable cost of board, lodging, or other facilities may be included as part of an employee's wage if the:
(1)
Facilities are customarily and regularly available to all similarly situated employees;
(2)
Employee's acceptance of the facility is voluntary and uncoerced; and
(3)
Employee receives the benefits of the facility for which he or she is charged.
B.
The reasonable cost of board, lodging, or other facilities included as part of the wage paid to an employee may not:
(1)
Exceed the actual cost to the employer; and
(2)
Include profit to the employer or to any person or establishment affiliated with the employer.
C.
The reasonable cost of furnishing board, lodging, or other facilities may include the cost of operation and maintenance.
D.
The employer shall demonstrate the actual cost of the board, lodging, or facilities furnished.
E.
In a food and drink establishment, if the actual cost of food consumed by an employee cannot be determined, the reasonable cost is half the price customarily and regularly charged a member of the general public.
F.
The cost of furnishing board, lodging, or other facilities primarily for the benefit or convenience of the employer may not be included as part of an employee's wage.

Regulation .19 Regular Hourly Rate.Copy Citation

A.
“Regular hourly rate” means the usual hourly rate.
B.
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.
C.
Any commission or bonus, if:
(1)
Paid weekly, is added to the employee's total compensation in order to determine the regular hourly rate;
(2)
Paid other than weekly, is allocated to the particular workweek in which it was earned; or
(3)
Allocation is not practical, may be apportioned in equal amounts to each workweek during the period in which it was earned.
D.
Gratuities and Tips.
(1)
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.
(2)
A compulsory monetary charge for service, even if retained by the employee, is not a tip.
(3)
A tipped employee’s wages must equal at least the minimum wage when direct wages and tips are combined.
(4)
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.
E.
The following amounts are not included in determining the regular hourly rate:
(1)
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;
(2)
Payments for occasional periods when no work is performed, such as vacation, sick leave, holidays, or jury duty;
(3)
Payments for reimbursement purposes, such as travel, equipment, or meal expenses;
(4)
Payments made in recognition of services if the payment is:
(a)
Within the sole discretion of the employer and not pursuant to any agreement, or
(b)
Made pursuant to a bona fide profit-sharing trust, savings, or thrift plan;
(5)
Contributions irrevocably made by an employer to a trustee or third person under a bona fide retirement, insurance, or similar employee benefit plan;
(6)
Extra compensation paid at a premium rate pursuant to a statutorily valid employer-employee agreement; and
(7)
Tips received by the employee in excess of the tip credit.

Regulation .20 Restaurant Tip Credit Wage Statement.Copy Citation

A.
Definitions.
(1)
In this regulation, the following terms have the meanings indicated.
(2)
Terms Defined.
(a)
“Reported tips” means tips retained by the employee and disclosed to the employer, tips distributed to the employee by the employer, or tips obtained through a valid tip pooling arrangement or tip sharing arrangement.
(b)
“Restaurant” has the meaning stated in Regulation .07D of this chapter.
(c)
“Tip credit wage statement” means a written or electronic statement that shows the employee’s effective hourly rate of pay, including employer paid cash wages plus all reported tips, for all tip credit hours worked for each workweek in the pay period.
B.
No later than 2 weeks following the end of the pay period, a restaurant employer shall provide each employee for whom the employer utilizes a tip credit with a tip credit wage statement for each pay period that reflects all reported tips for tip credit hours for each workweek of the pay period.
C.
A restaurant employer may satisfy the requirement in §B of this regulation by providing an online system through which an employee may obtain the employee’s tip credit wage statement.

Regulation .21 Salesman.Copy Citation

A.
“Salesman” for purposes of Labor and Employment Article, §3-415, Annotated Code of Maryland, means an employee whose primary duty is to sell or obtain orders or contracts for the sale of automobiles, trailers, trucks, or farm machinery.
B.
The sales work may be performed in the establishment or elsewhere.
C.
A salesman may perform work incidental to and in conjunction with the employee's regular sales or solicitations, including incidental deliveries and collections.

Regulation .22 Work-Study Programs.Copy Citation

A.
Definitions.
(1)
A “work-study program” is a program in which the period of normal public or private school attendance is divided between school attendance and employment in industry or business.
(2)
A “work-study coordinator” is the individual assigned to supervise or administer a work-study program.
B.
Application.
(1)
Upon application by a work-study coordinator, the Commissioner may authorize payment to a student of an hourly rate less than the statutory minimum.
(2)
The application shall state the:
(a)
Title of the work-study coordinator;
(b)
Name and address of the school attended by the student;
(c)
Name and address of the student;
(d)
Name and address of the employer;
(e)
Type of work to be performed by the student;
(f)
Hourly rate to be paid; and
(g)
Duration of time that the student will be paid less than the statutory minimum.
(3)
The employer and the work-study coordinator shall sign the application.
C.
The work-study coordinator shall:
(1)
Obtain, through his or her efforts, all work-study program employment opportunities;
(2)
Supervise, on a continuing basis, the progress of each student in a work-study program; and
(3)
Notify the Commissioner upon termination of a student's employment in the job designated on the application.

Regulation .23 Workweek.Copy Citation

“Workweek” means a fixed and regularly recurring period of 168 consecutive hours beginning on any hour of the day.

Regulation .24 Computer-Related Occupations: Exemptions from Minimum Wage and Overtime Compensation.Copy Citation

A computer systems analyst, computer programmer, software engineer, or other similarly skilled professional employee in the computer field is eligible for classification as an employee in a professional capacity if the employee meets the standard set forth in 29 CFR §541.400 et seq.
Chapter annotations
Authority: Labor and Employment Article, §§2-106(c), 3-410, and 3-419, Annotated Code of Maryland
History: Effective date: August 14, 1974 (1:1 Md. R. 70)
History: Regulations .01—.16 repealed and new regulations .01—.22 adopted effective December 17, 1984 (11:25 Md. R. 2132)
History: Regulation .01 repealed and new Regulation .01 adopted effective February 13, 2006 (33:3 Md. R. 240)
History: Regulation .04 repealed and new Regulation .04 adopted effective February 13, 2006 (33:3 Md. R. 240)
History: Regulation .05 repealed and new Regulation .05 adopted effective February 13, 2006 (33:3 Md. R. 240)
History: Regulation .13 repealed and new Regulation .13 adopted effective February 13, 2006 (33:3 Md. R. 240)
History: Regulation .17 repealed and new Regulation .17 adopted effective February 13, 2006 (33:3 Md. R. 240)
History: Regulation .19D amended effective January 20, 2014 (41:1 Md. R. 12)
History: Regulation .23 adopted effective June 8, 1992 (19:11 Md. R. 1015)
History: Regulation .23 repealed and new Regulation .23 adopted effective February 13, 2006 (33:3 Md. R. 240)
History: Chapter revised effective October 1, 2020 (47:8 Md. R. 435)