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Read. Follow. Verify.Maryland Bill Proposes Constitutional Right to Minimum Wage Without Tip Deductions and Regulates Restaurant Service Fees
Last action · February 12, 2026: Hearing 3/11 at 1:00 p.m.Sponsor: Anthony Muse
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What This Bill Would Do
Senate Bill 886 establishes a constitutional right for Maryland workers to be paid at least the state minimum wage regardless of tips, phases out s by January 1, 2031, and requires food service facilities to distribute customer s directly to non-managerial staff.
Restaurant workers will see s eliminated and minimum wage rates rise up to $25 per hour by 2030, while restaurants must fully disclose and distribute s directly to service staff rather than retaining them for general business costs.
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Tipped employees
Workers will receive the full state minimum wage without tip credit deductions starting in 2031 and will receive mandatory distributions of all customer service fees.
Food service facilities
Restaurant and food service operators must alter wage structures, eliminate tip credits by 2031, prominently disclose service fees, and distribute all collected service fees to non-managerial staff.
Small employers
Employers with 14 or fewer employees are subject to updated statutory minimum wage schedules increasing progressively through 2032.
Key Facts
- Establishes a proposed constitutional amendment to be voted on in November 2026 guaranteeing every worker the right to be paid at least the state minimum wage without regard to tips.
- Prohibits employers from including a tip credit as part of an employee's wage beginning January 1, 2031.
- Raises the standard state minimum wage to $17.00 on Jan 1, 2027, $20.00 on Jan 1, 2028, $22.50 on Jan 1, 2029, and $25.00 on Jan 1, 2030.
- Requires food service facilities charging a service fee to prominently disclose the amount or percentage on the menu or in a visible location before ordering.
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- Mandates that 100% of collected service fees be distributed to the employees who directly performed the services and forbids distribution to supervisory or managerial employees.
- Repeals exemptions from the Maryland Wage and Hour Law, including provisions previously excluding certain seasonal, camp, and agricultural workers.
- Treats undisclosed or improperly distributed service fees as unfair, abusive, or deceptive trade practices under commercial law.
Frequently Asked Questions
What happens to service fees added to restaurant bills?
How will voters decide on the constitutional change?
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News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently filed. The next step in the legislative lifecycle is Committee.
Procedural history
2 actions- Feb 12, 2026SenateHearing 3/11 at 1:00 p.m.
- Feb 6, 2026SenateIntroducedFirst Reading Finance
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Elimination of Tip Credits
The bill phases out and ultimately bans tip credits by 2031, shifting all wage obligations fully onto employers.
Connected Entities
Sources
mgaleg.maryland.gov
Analysis Score
0–100- Significance85How much this matters to a regular citizen
- Controversy75Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz60Current news / social attention level
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