Are employers allowed to set a different hourly wage for part-time and full-time employees?

In Maryland, employers can pay different hourly wages to part-time and full-time employees. Under wage and hour law, employers must compensate workers for all hours worked and they may do so at different rates. However, the wages must still meet minimum wage and overtime requirements set by state and federal law. Minimum wage in Maryland is currently $11.75 per hour for workers 18 and older. Employees are also eligible for any overtime wages due if they work more than 40 hours in a week. Overtime wages are currently set at one-and-one-half times the regular hourly wage. Employers are allowed to differentiate hourly wages based on factors such as experience, skill and job duties. If an employer sets different hourly wages for part-time and full-time employees, they must have a valid business reason for the difference. For example, employers could pay higher wages for employees who work more hours and require more skill and training. Ultimately, employers must ensure they meet all legal requirements for wages and overtime, regardless of whether they are employing part-time or full-time workers. Employers should be familiar with the wage and hour laws in their state and must pay at least minimum wage and any agreed-upon wages. If a difference in hourly wages between part-time and full-time workers is justified, employers must ensure their policies are compliant with the law.

Related FAQs

What is the overtime rate for hourly employees?
What laws govern termination of employment?
What type of records must employers provide regarding wages earned?
Are employers allowed to pay different wages for the same job?
What is the federal law on overtime pay?
What is the federal minimum wage?
What is the difference between exempt and nonexempt employees?
What is the difference between compensatory time and overtime pay?
Are employers allowed to pay a lower rate for piecework?
Are employers allowed to pay commissions in lieu of an hourly wage?

Related Blog Posts

What is Wage and Hour Law and How Does it Affect Your Business? - July 31, 2023
What Employers Need to Know About Wage and Hour Law - August 7, 2023
The Basics of Payroll Law and Compliance - August 14, 2023
Compensating Your Employees - Tips for Wage and Hour Law Compliance - August 21, 2023
Understanding Overtime Rules Under Wage and Hour Law - August 28, 2023