Minimum wage debates continue to gain momentum across the United States, and while cities like Los Angeles have already made headlines with major increases, another state is now being pushed into the spotlight. Maryland could soon become the next battleground for significant minimum wage reform, especially for one overlooked group—tipped workers.
Context
Minimum wage increases have been rolling out in states across the country, especially after the COVID-19 pandemic brought cost-of-living issues to the forefront. With inflation, housing prices, and basic expenses rising, the federal minimum wage of $7.25 an hour—unchanged since 2009—has become a target of widespread criticism.
While states like California and New York have already implemented aggressive wage hikes to support their workers, other states are now being pressured to follow suit.
California
One of the most well-publicized changes came in California in 2024, when the minimum wage for fast-food workers was increased to $20 per hour. That’s a 25% jump over the state’s standard minimum wage of $16 per hour. Cities like Los Angeles and San Francisco, known for their sky-high living costs, were major drivers of this change.
Still, critics argued the raise should apply to all workers—not just those in the fast-food industry. Many lawmakers and advocates have pushed for uniform wage increases to reflect the realities of rent, groceries, and other everyday essentials.
Maryland
Now, the focus is shifting to Maryland. While the state increased its general minimum wage to $15 per hour at the start of 2023, tipped workers have been left behind. Their base pay remains at just $3.63 per hour—a number that hasn’t budged since 2014.
That could soon change. A new proposal from the advocacy group One Fair Wage is calling on Maryland lawmakers to raise the tipped minimum wage significantly, and potentially include a broader increase to $25 per hour for all workers on the 2026 ballot.
That would make Maryland’s minimum wage the highest in the country—by far.
Proposal
The key piece of the proposal is eliminating what’s known as the subminimum wage for tipped workers. While tips are meant to supplement wages, workers in industries like restaurants, salons, and hospitality often face unpredictable income and still depend heavily on customer generosity.
One Fair Wage argues that relying on tips to make up the difference leaves workers vulnerable and financially unstable. The current $3.63 tipped wage barely covers the basics and doesn’t match up with the $15 baseline other workers now receive.
Here’s a look at the difference:
| Worker Type | Current Wage in Maryland |
|---|---|
| Tipped Workers | $3.63/hour |
| Non-Tipped Workers | $15.00/hour |
If Maryland voters approve the $25/hour initiative in 2026, it would dramatically reshape the income landscape for working-class residents.
Challenges
Of course, raising the minimum wage—especially to $25 an hour—isn’t without its critics. Some argue that such a sharp increase could place a burden on small businesses and lead to job cuts, automation, or increased prices.
Others point out that raising wages alone won’t fix the problem. High housing costs, lack of affordable child care, and healthcare expenses also need attention. That’s why many policymakers say the solution must be broader than just adjusting hourly pay.
Holistic
New York is a strong example of this wider approach. In addition to raising wages, the state is rolling out a series of programs to help working families manage the cost of living.
Among the initiatives planned in New York’s 2026 fiscal budget:
- Inflation rebate checks for low-income households
- Tax cuts for middle-income families
- Expansion of the state Child Tax Credit
- Over $2 billion in funding for child care programs
These layered strategies show how wage increases, combined with targeted financial support, can make life more affordable for families across the state.
Outlook
If Maryland does move forward with raising the tipped wage—and especially if it brings the state minimum wage to $25/hour—it could trigger a wave of similar proposals across the country. It would also send a clear message that low pay in traditionally underpaid industries is no longer acceptable.
With many workers still struggling to make ends meet, this growing push for fairer wages isn’t slowing down anytime soon.
FAQs
What is Maryland’s tipped wage in 2025?
It’s $3.63 per hour and hasn’t changed since 2014.
What is the proposed minimum wage in Maryland?
A new proposal seeks to raise it to $25/hour by 2026.
How does California’s wage compare?
Fast-food workers earn $20/hour as of April 2024.
Why is the subminimum wage criticized?
It leaves tipped workers dependent on unpredictable tips.
Is $25/hour the highest proposed wage?
Yes, it would be the highest minimum wage in the U.S.
