Under Maryland's overtime law, as under the federal law, employers must pay employees 11/2 times their regular rate for hours worked in excess of 40 in a workweek (MD Code Sec. 3-415). Maryland does not require that overtime be paid for hours worked in excess of 8 per day or on weekends or holidays (although union contracts often require overtime pay for such work). For some occupations in Maryland, overtime is calculated on the basis of a different period of time. Certain farmworkers, for example, receive overtime for hours worked over 60 in a week. However, under state and federal laws, some employers are exempt from the requirement to pay overtime, and some employees are exempt from the right to receive it. Leave hours, including vacation, sick time, and holiday, are not counted toward the accumulated hours in a week for overtime purposes. Overtime is calculated on hours actually worked. Maryland employers that do not pay overtime earned, may owe triple damages to the employees violated.
Note: The federal Department of Labor’s (DOL) final overtime regulations, effective December 1, 2016, have increased the salary level for exemption, will automatically update the salary threshold every 3 years going forward, and have allowed for the inclusion of nondiscretionary bonuses, incentive payments, and commissions toward as much as 10 percent of the salary threshold.