MD SB886

Proposes a Maryland constitutional amendment establishing a fundamental right to be paid the state minimum wage without regard to tips received, subject only to compelling state interest

Increases the state minimum wage incrementally from $15.00/hour (2024) to $25.00/hour by January 2030, with annual CPI adjustments beginning January 2033; small employers (14 or fewer employees) follow a slower schedule reaching $25.00/hour by January 2032

Phases out the tip credit system by January 1, 2031, after which employers cannot include tips as part of wages and must pay tipped employees the full state minimum wage

Requires food service facilities to prominently disclose service fees on menus or before ordering, and mandates that service fees be distributed in full to employees who directly performed the services (not to supervisors or managers)

Repeals the Secure Maryland Wage Act and various minimum wage exemptions, including for small food establishments with $400,000 or less annual gross income