Maryland Employment Contract Template

• At-will employment: Maryland follows the at-will standard, allowing termination by either party unless a law, agreement, or policy says otherwise. Exceptions apply for discrimination, retaliation, or violations of public policy.
• Minimum wage: $15.00/hour statewide as of Jan. 1, 2025. Local rates may be higher (e.g., Montgomery County up to $17.65, Howard County $16.00). Tipped workers must earn at least $3.63/hour in direct pay, with tips making up the rest. Maryland’s minimum wage is scheduled to increase to $15.50 by January 1, 2026, and $16.00 by July 1, 2026.
• Overtime: Non-exempt employees must receive 1.5× pay for hours worked over 40 in a week (Maryland Labor and Employment Code § 3-415).
• Meal/rest breaks: Maryland law does not require breaks for most adult workers. Exceptions: minors under 18 must get a 30-minute break for every 5 hours worked, and certain retail employees working 6+ hours must get a 30-minute break.
• Paid leave: Under the Healthy Working Families Act, employers with 15+ employees must provide up to 40 hours of paid sick and safe leave annually. Smaller employers must provide the same amount of unpaid leave. Leave accrues at 1 hour per 30 hours worked. Maryland’s FAMLI program takes effect January 3, 2028.
• Pay frequency: Wages must be paid at least every two weeks or semi-monthly, unless the employer and employee agree otherwise in writing (MD Labor and Employment Code § 3-502).
• Final pay: All wages owed must be paid by the next regular payday after termination (MD Labor and Employment Code § 3-505).
• Child labor: Minors under 18 need a work permit. Under 14 may only work in entertainment with a special permit. Ages 14–15 are limited to 3 hrs on school days, 18 hrs per school week, and 7 a.m.–7 p.m. (9 p.m. in summer). Ages 16–17 can’t exceed 12 combined school/work hrs per day, must get 8 hrs rest, and need a 30-min break after 5 hrs. Hazardous jobs are off-limits under 18.
• Non-competes: Banned for employees earning less than 150% of the state minimum wage (about $22.50/hour, or $46,800/year in 2025). Agreements must be reasonable in scope and duration.
• E-signatures: Recognized under Maryland’s adoption of the Uniform Electronic Transactions Act (UETA) (MD Commercial Law Code § 21-106).
• Recordkeeping: Employers must keep payroll records (wages, hours, leave accruals) for at least 3 years.

Creating a Maryland employment contract is straightforward. Include these essentials:

1. Start with the basics: Add employer and employee names, job title, and start date. Maryland requires clarity on employment terms.
2. Define job role and schedule: Outline duties, reporting structure, and hours. Clarify exempt vs non-exempt status for overtime eligibility.
3. Set pay and frequency: State the wage or salary, pay schedule (biweekly/semi-monthly), and overtime rules. Reflect local minimum wage requirements.
4. Detail leave policies: Include paid sick and safe leave accrual and note future FAMLI coverage. Specify any additional vacation, PTO, or holidays.
5. Address breaks: For minors and retail workers, include the required 30-minute break. For adults, outline any employer-provided meal or rest breaks.
6. Include protections: Add confidentiality, IP ownership, and restrictive covenant terms. Non-competes must meet Maryland’s wage thresholds and reasonableness standards.
7. Termination terms: Confirm at-will status unless limited. State notice or severance policies if offered. Final pay must be delivered by the next payday.
8. Governing law and signatures: Specify Maryland law applies. Confirm electronic signatures are valid under Maryland’s UETA.