What is the penalty for not paying employees the minimum wage?

In Maryland, employers who do not pay their employees the minimum wage can face serious penalties. The Maryland Department of Labor, Licensing, and Regulation (DLLR) and the U.S. Department of Labor (DOL) both have laws that enforce minimum wage requirements. When an employee is not paid the minimum wage, the employer can be issued a citation by the DLLR for a wage payment violation. If the employer fails to comply with the citation, the Maryland Commissioner of Labor and Industry may bring a civil action in court against the employer. In this case, the employer may be subject to fines of up to $1,000 per employee for each violation. The DOL also has laws in place that state employers can be penalized for not paying employees the minimum wage. A violation of the Fair Labor Standard Act (FLSA) can result in an employer facing civil money penalties. These penalties can be as much as $1,100 for every violation of the FLSA and up to $11,000 for repeat or willful violations. In some cases, employers can also be subject to criminal prosecution and charges of up to six months in prison. Overall, the penalties for not paying employees the minimum wage in Maryland can be quite severe. Employers should make sure that they are in compliance with all local, state, and federal minimum wage requirements in order to avoid any penalties.

Related FAQs

What are the restrictions on working hours for minors?
What are the rules for paying interns?
What is the child labor law?
What rights do employees have under the Fair Labor Standards Act (FLSA)?
What types of financial penalties can employers face for violating wage and hour laws?
What are the requirements for conducting background checks on potential employees?
Are employers allowed to require employees to work additional hours without pay?
What is the federal law on overtime pay?
Are employers allowed to set a different hourly wage for part-time and full-time employees?
Are employers allowed to offer flexible working hours?

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