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07 Sep

August 2020 Maryland HR Legal Updates

Posted at

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Maryland Restaurant Employers Required to Provide Wage Statements to Tipped Employees

What happened?
Effective October 1, 2020 Maryland restaurant employers that claim a tip credit must provide all tipped employees a written or electronic wage statement.

What are the details?
This wage statement can either be included as part of the employee’s pay stub or at a separate time no later than two weeks following the end of the pay period. The wage statement must include the following information:

  • The effective hourly tip rate is derived from the employer’s paid cash wages (the sum of total cash wages); plus
  • All reported tips for tip credit hours worked each workweek of the pay period (the total reported tips for that workweek, then divided by the number of hours worked).

Maryland has provided an FAQ about the Tip Credit Wage Statement.

What do employers need to do?
Restaurant employers in Maryland should review and update their payroll policies and systems to ensure compliance with this law by October 2020.

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