What is the difference between a minimum wage and a living wage?
The difference between a minimum wage and a living wage in Maryland is significant. A minimum wage is the lowest amount employers are legally allowed to pay their employees. In Maryland, the minimum wage is $11.75 per hour. This means that employers cannot pay less than that rate for any work performed. A living wage is what a worker needs to earn to support themselves and their family. This is higher than the minimum wage rate because it takes into account costs of living such as rent, transportation, and food. In Maryland, the living wage is $17.09 per hour. This does not mean employers are required to pay this amount, but it is a benchmark for providing workers with a wage that allows them to live comfortably. Furthermore, wage and hour law in Maryland requires employers to pay overtime for all hours worked beyond 40 in a workweek. The overtime rate is 1.5 times the employee’s regular rate, which can mean an increase in pay for employees who make minimum wage and can be a way for those workers to earn a living wage. Overall, a minimum wage is the legal amount of pay employers must provide their employees, while a living wage is what a worker needs to earn to support themselves and their family. Though employers are not required to pay a living wage, wage and hour law in Maryland does offer some protections for workers and a way for them to make ends meet.
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