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# New pay rates take effect in Montgomery County
- URL: https://www.themontgomerybrief.org/new-pay-rates-take-effect-in-montgomery-county/
- Published: 2026-07-14T00:21:00.000Z
- Updated: 2026-08-29T16:49:35.000Z
- Author: Aline Barros
- Tags: Community, News

### Under the updated regulations, the exact hourly rate now depends strictly on the size of the business.

Montgomery County workers are expected to see a bump in their paychecks as the county implements its latest annual minimum wage increase. 

The mandatory adjustment, triggered by rising inflation across the Washington-Arlington-Alexandria region, aims to help local families manage the growing cost of living while maintaining economic stability for area businesses.

Under the updated regulations, the exact hourly rate now depends strictly on the size of the business. 

Large companies with 51 or more employees must now pay a minimum of $18 per hour. 

Midsized employers, which include businesses with 11 to 50 workers, certain nonprofits, and specific Medicaid-funded home health providers, are required to pay $16.50 hourly. 

Small businesses with ten or fewer workers see their rate set at $15.95 per hour.

The new rules also protect tipped employees, ensuring their combined base pay and tips equal at least the standard county minimum wage. 

Employers are legally required to pay tipped staff a cash wage of at least $4 per hour. 

Restaurant owners utilizing this tip credit must provide detailed physical or electronic wage statements every pay period to prove their workers' effective hourly rates hit the required thresholds.

These changes went into effect on July 1, 2026, following inflation-indexing guidelines established under the Montgomery County Code. 

To ensure compliance, businesses with tipped workers must submit their quarterly wage reports to the Montgomery County Office of Human Rights within 30 days of the end of each quarter.