Montgomery County Council Raises Minimum Wage to $11.50 by 2017

Yesterday, the Montgomery County Council voted overwhelmingly to increase the county’s minimum wage. The current minimum wage in the county is the same as the state and federal minimum wage, $7.25 per hour. Under the plan passed by the council, the county minimum wage will rise in annual increments: to $8.40 in October 2014, $9.55 in 2015, $10.75 in 2016 and $11.50 in 2017.

The Washington Post characterizes these efforts as “part of a national movement by state and local governments to address growing wage inequality where Congress has not.” Indeed, the move by Montgomery legislators is part of a coordinated regional effort alongside the District of Columbia and Prince George’s County. Lawmakers in Prince George’s are now expected to pass a similar measure today on the minimum wage after having delayed action until Montgomery held its vote on the wage. The District is expected to follow suit shortly on some version of a minimum wage increase.

It is important that state lawmakers follow the lead of Montgomery County and raise the minimum wage in the upcoming legislative session. For the past forty years workers have lost buying power, even as. Raising the minimum wage would increase the earning of households with low-wage workers. Because those with low and moderate incomes are more likely to spend the additional income they receive, putting more money in the hands of these workers would also boost the local economy. Further, polling finds that most Americans support raising the minimum wage, as do a majority of Maryland residents.

One final note: Montgomery County decided not to index their minimum wage increase to inflation, and they excluded tipped workers from consideration (although employers are still required to pay tipped workers the state minimum wage if their tips aren’t sufficient). The General Assembly should include an inflation index and protect tipped workers when it takes up the state minimum wage bill in January. Furthermore, the enforcement mechanism for Montgomery County’s minimum wage is also unclear and may require state action. Stay tuned for more updates on this important issue.