MD HB1400

State minimum wage increases from $15.00/hour (through December 2026) to $17.00/hour (January 2027), then $18.50/hour (January 2028), and $20.00/hour (July 2028)

Eliminates the tip credit system beginning July 1, 2028, requiring employers to pay tipped employees the full state minimum wage rather than a reduced rate supplemented by tips

Creates a state income tax subtraction for qualified tips received by workers in industries like food service, hospitality, barbering, cosmetology, parking, and custodial services

Provides employers a state income tax credit of 50% of the difference between minimum wage and tip credit amounts for taxable years 2027-2028, capped at $10,000 annually with no carryover

Requires food service facilities to prominently disclose service fees to customers before ordering, including the fee amount, purpose, and whether it is paid directly to employees