Summary — HB 1458: Declaration of Rights — Right to Minimum Wage for Tipped Workers
Status (Maryland version)
- Introduced: February 7, 2025 (assigned to Economic Matters)
- Hearing: scheduled for 2/27/2025; hearing later cancelled (record shows 2/24/2025: hearing canceled)
- Next procedural step (if advanced): amendment to the Maryland Constitution must be submitted to voters; bill text directs placement on the November 2026 general election ballot.
- Sponsors (House): Delegates Boafo, Behler, Foley, Harris, Kaiser, Kaufman, Martinez, Roberson, Terrasa, Williams, Wims, Woods
- Companion bill: SB 809
Purpose / intent
- To add a constitutional protection guaranteeing that people who work in jobs where tipping is customary have a fundamental right to be paid a wage at least equal to the State minimum wage without counting tips toward that wage. The amendment elevates the protection to the Maryland Constitution and imposes a strict judicial standard on any state action that would limit the right.
Key provisions
- Adds Article 49 to the Maryland Declaration of Rights with this core guarantee: while employed in work for which tips are customary, a person has the fundamental right to be paid a wage rate at least equal to the State minimum wage “without regard to tips that the individual receives.”
- Restricts state action: the State “may not, directly or indirectly, deny, burden, or abridge the right unless justified by a compelling State interest achieved by the least restrictive means.” (This invokes strict scrutiny.)
- Provides that the General Assembly has determined local approval is not required and directs submission of the proposed constitutional amendment to Maryland voters at the November 2026 general election with the required ballot question language.
Who would be affected
- Tipped workers in Maryland (e.g., servers, bartenders, certain hotel/food-service staff) — would have a constitutional right to receive at least the statutory state minimum wage apart from tips.
- Employers in hospitality and service industries — potentially required to eliminate or reduce tip credits and pay higher base wages.
- State agencies and courts — enforcement and interpretation would shift to constitutional-level analysis; any law or regulation reducing the guaranteed wage for tipped workers would face strict scrutiny.
- Consumers and employers — possible economic effects (higher labor costs, menu/price adjustments, changes to tipping practices).
Practical and legal implications
- As a constitutional amendment, the provision would override conflicting state statutes or regulations that permit paying tipped workers less than the full minimum wage (i.e., tip credits), unless the State meets a compelling interest under the least restrictive means test.
- Federal law (FLSA) still applies; federal tip-credit rules would continue to operate as to federal standards, but Maryland could set higher protections for workers within the state.
- The amendment is high-level and does not specify enforcement mechanisms, administrative procedures, or implementation timelines — additional legislation or regulations would likely be needed to implement and enforce the constitutional guarantee.
Timeline / next steps
- If the General Assembly approves the proposed amendment, it must be placed on the ballot and receive voter approval in a statewide referendum (the bill directs placement on the November 2026 ballot). If voters approve, the constitutional change would take effect according to the amendment’s terms.
What to watch
- Any follow-up legislation defining enforcement, penalties, employer obligations, or transition rules.
- Administrative guidance from state labor agencies on how the constitutional protection interacts with existing wage statutes and federal law.
- Campaigns for and against the amendment ahead of the 2026 referendum.