Labor and Employment - Exemptions From Overtime Pay - Administrative, Executive, or Professional Capacity

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0069*

HOUSE BILL 69
K3 6lr0691
(PRE–FILED)
By: Delegate Vogel
Requested: August 13, 2025
Introduced and read first time: January 14, 2026
Assigned to: Government, Labor, and Elections

A BILL ENTITLED

AN ACT concerning 1

Labor and Employment – Exemptions From Overtime Pay – Administrative, 2
Executive, or Professional Capacity 3

FOR the purpose of altering the exemption from overtime pay for individuals who are 4
employed to work in an administrative, executive, or professional capacity; and 5
generally relating to exemptions from overtime pay. 6

BY repealing and reenacting, with amendments, 7
Article – Labor and Employment 8
Section 3–403 9
Annotated Code of Maryland 10
(2025 Replacement Volume) 11

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13

Article – Labor and Employment 14

3–403. 15

This subtitle does not apply to an individual [who]: 16

[(1) is employed in a capacity that the Commissioner defines, by regulation, 17
to be administrative, executive, or professional;] 18

(1) (I) WHO IS COMPENSATED ON A SALARY BASIS, AS DEFINED IN 19
29 C.F.R. § 541.602, OR A FEE BASIS , AS DEFINED IN 29 C.F.R. § 541.605, AT NOT 20
LESS THAN: 21

2 HOUSE BILL 69

1. A. FOR THE 12–MONTH PERIOD BEGINNING JULY 1
1, 2027, $769.23 PER WEEK; 2

B. FOR THE 12–MONTH PERIOD BEGINNI NG JULY 1, 3
2028, $826.92 PER WEEK; 4

C. FOR THE 12–MONTH PERIOD BEGINNI NG JULY 1, 5
2029, $884.62 PER WEEK; 6

D. FOR THE 12–MONTH PERIOD BEGINNI NG JULY 1, 7
2030, $942.31 PER WEEK; OR 8

E. BEGINNING JULY 1, 2031, $961.54 PER WEEK; OR 9

2. IF HIGHER, THE AMOUNT ESTABLISHED IN 29 C.F.R. 10
§ 541.600; AND 11

(II) 1. WHOSE PRIMARY DUTY: 12

A. IS THE PERFORMANCE O F OFFICE OR NONMANUA L 13
WORK DIRECTLY RELATE D TO THE MANAGEMENT OR GENERAL BUSINESS 14
OPERATIONS OF THE EMPLOYER OR THE EMPLOYER’S CUSTOMERS; AND 15

B. INCLUDES THE EXERCIS E OF DISCRETION AND 16
INDEPENDENT JUDGMENT WITH RESPECT TO MATTERS OF SIGNIFICANCE; 17

2. A. WHOSE PRIMARY DUTY IS MANAGEMENT OF THE 18
ENTERPRISE IN WHICH THE EMPLOYEE IS EMPL OYED OR OF A CUSTOMA RILY 19
RECOGNIZED DEPARTMENT OR SUBDIVISION OF THE ENTERPRISE; 20

B. WHO CUSTOMARILY AND REGULARLY DIRECTS TH E 21
WORK OF TWO OR MORE OTHER EMPLOYEES; AND 22

C. WHO HAS THE AUTHORIT Y TO HIRE OR FIRE OT HER 23
EMPLOYEES OR WHOSE SUGGESTIONS AND RECOMMENDATIONS AS TO THE HIRING, 24
FIRING, ADVANCEMENT, PROMOTION, OR ANY OTHER CHANGE OF STATUS OF OTHER 25
EMPLOYEES ARE GIVEN PARTICULAR WEIGHT; OR 26

3. WHOSE PRIMARY DUTY I S THE PERFORMANCE OF 27
WORK REQUIRING: 28

HOUSE BILL 69 3

A. KNOWLEDGE OF AN ADVA NCED TYPE IN A FIELD OF 1
SCIENCE OR LEARNING CUSTOMARILY ACQUIRED BY A PROLONGED COURS E OF 2
SPECIALIZED INTELLECTUAL INSTRUCTION; OR 3

B. INVENTION, IMAGINATION, ORIGINALITY, OR TALENT 4
IN A RECOGNIZED FIELD OF ARTISTIC OR CREATIVE ENDEAVOR; 5

(2) WHO is employed in a nonadministrative capacity at an organized 6
camp, including a resident or day camp; 7

(3) WHO is under the age of 16 years and is employed no more t han 20 8
hours in a week; 9

(4) WHO is employed as an outside salesman; 10

(5) WHO is compensated on a commission basis; 11

(6) WHO is a child, parent, spouse, or other member of the immediate 12
family of the employer; 13

(7) WHO is employed in a drive–in theater; 14

(8) WHO is employed as part of the training in a special education program 15
for emotionally, mentally, or physically handicapped students under a public school system; 16

(9) WHO is employed by an employer who is engaged in canning, freezing, 17
packing, or first processing of perishable or seasonal fresh fruits, vegetables, or 18
horticultural commodities, poultry, or seafood; 19

(10) WHO engages in the activities of a charitable, educational, nonprofit, or 20
religious organization if: 21

(i) the service is provided gratuitously; and 22

(ii) there is, in fact, no employer–employee relationship; 23

(11) WHO is employed in a cafe, drive –in, drugstore, restaurant, tavern, or 24
other similar establishment that: 25

(i) sells food and drink for consumption on the premises; and 26

(ii) has an annual gross income of $400,000 or less; 27

(12) WHO is employed in agriculture if, during each quarter of the preceding 28
calendar year, the employer used no more than 500 agricultural–worker days; 29

4 HOUSE BILL 69

(13) WHO is engaged principally in the range production of livestock; 1

(14) WHO is employed as a hand–harvest laborer and is paid on a piece–rate 2
basis in an operation that, in the region of employment, has been and customarily and 3
generally is recognized as having been paid on that basis, if: 4

(i) the individual: 5

1. commutes daily from the permanent residence of the 6
individual to the farm where the individual is employed; and 7

2. during the preceding calendar year, was employed in 8
agriculture less than 13 weeks; or 9

(ii) the individual: 10

1. is under the age of 17; 11

2. is employed on the same farm as a parent of the individual 12
or a person standing in the place of the parent; and 13

3. is paid at the same rate that an employee who is at least 14
17 years old is paid on the same farm; 15

(15) WHO is a covered employee under the Secure Maryland Wage Act; or 16

(16) (i) WHO has entered into a contract to play baseball at the minor 17
league level; and 18

(ii) WHO is compensated in accordance with the terms of a collective 19
bargaining agreement that expressly states the wages and working conditions of 20
employees. 21

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 22
October 1, 2026. 23