Bill would raise Maryland's salaried-employee overtime threshold to $58,656

Delegate Vogel told the Economic Matters Committee House Bill 582 would raise the salary threshold under which salaried employees are eligible for overtime pay to $58,656, the level the U.S. Department of Labor sought to set under a federal rule last year before a federal judge enjoined that rule.

"What this means is that salaried employees who are making equivalent to $17 an hour, if they work beyond their 40 hour weeks they are not receiving overtime pay," Vogel said, arguing the bill would align state protections with the previously proposed federal threshold and ensure workers receive overtime when they work more than 40 hours.

Roland Carter, a journeyman lineman and International Brotherhood of Electrical Workers member, testified in support on behalf of the union and said workers rely on overtime protections for family time and income. "House Bill 5 82 will provide clear guidance and more enforcement," Carter said.

Opponents, including representatives of small-business groups, warned of unintended consequences. Witnesses said raising the threshold by roughly 65% (from the current salaried threshold to $58,656) could prompt employers to reclassify salaried positions to hourly or make other pay-structure changes to manage costs, and that the bill would take effect with a fast statutory timeline in October under the draft language presented.

Committee members asked whether the bill would apply to remote workers; the sponsor said the measure treats salaried workers by compensation and classification and does not provide a specific remote-worker exemption. No committee vote is recorded in the transcript excerpt.

Proponents urged a favorable report, and opponents urged caution and consideration of practical impacts for small businesses.