EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0582*
HOUSE BILL 582
K3 5lr1931
By: Delegates Vogel, Boafo, and Stewart
Introduced and read first time: January 23, 2025
Assigned to: Economic Matters
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
(2016 Replacement Volume and 2024 Supplement) 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 O N 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
1. $1,128 PER WEEK; OR 22 2 HOUSE BILL 582
2. IF HIGHER, THE AMOUNT ESTABLISH ED IN 29 C.F.R. 1
§ 541.600; AND 2
(II) 1. WHOSE PRIMARY DUTY : 3
A. IS THE PERFORMANCE O F OFFICE OR NONMANUA L 4
WORK DIRECTLY RELATE D TO THE MANAGEMENT OR GENERAL BUSINESS 5
OPERATIONS OF THE EM PLOYER OR THE EMPLOYER ’S CUSTOMERS ; AND 6
B. INCLUDES THE EXERCIS E OF DISCRETION AND 7
INDEPENDENT JUDGMENT WITH RESPECT TO MATT ERS OF SIGNIFICANCE ; 8
2. A. WHOSE PRIMARY DUTY I S MANAGEMENT OF THE 9
ENTERPRISE IN WHICH THE EMPLOYEE IS EMPL OYED OR OF A CUSTOMARILY 10
RECOGNIZED DEPARTMEN T OR SUBDIVISION OF THE ENTERPRISE ; 11
B. WHO CUSTOMARILY AND REGULARLY DIRECTS TH E 12
WORK OF TWO OR MORE OTHER EMPLOYEES ; AND 13
C. WHO HAS THE AUTHORIT Y TO HIRE OR FIRE OT HER 14
EMPLOYEES OR WHOSE S UGGESTIONS AND RECOM MENDATIONS AS TO THE HIRI NG, 15
FIRING, ADVANCEMENT , PROMOTION , OR ANY OTHER CHANGE OF STATUS OF OTHER 16
EMPLOYEES ARE GIVEN PARTICULAR WEIGHT ; OR 17
3. WHOSE PRIMARY DUTY I S THE PERFORMANCE OF 18
WORK REQUIRING : 19
A. KNOWLEDGE OF AN ADVA NCED TYPE IN A FIELD OF 20
SCIENCE OR LEARNING CU STOMARILY ACQUIRED B Y A PROLONGED COURSE OF 21
SPECIALIZED INTELLEC TUAL INSTRUCTION ; OR 22
B. INVENTION, IMAGINATION, ORIGINALITY, OR TALENT 23
IN A RECOGNIZED FIEL D OF ARTISTIC OR CRE ATIVE ENDEAVOR ; 24
(2) WHO is employed in a nonadministrative capacity at an organized 25
camp, including a resident or day camp; 26
(3) WHO is under the age of 16 years and is employed no more than 20 27
hours in a week; 28
(4) WHO is employed as an outside salesman; 29
(5) WHO is compensated on a commission basis; 30 HOUSE BILL 582 3
(6) WHO is a child, parent, spouse, or other member of the immediate 1
family of the employer; 2
(7) WHO is employed in a drive–in theater; 3
(8) WHO is employed as part of the training in a special education program 4
for emotionally, mentally, or physically handicapped students under a public school system; 5
(9) WHO is employed by an employer who is engaged in canning, freezing, 6
packing, or first processing of perishable or seasonal fresh fruits, vegetables, or 7
horticultural commodities, poultry, or seafood; 8
(10) WHO engages in the activities of a charitable, educational, nonprofit, or 9
religious organization if: 10
(i) the service is provided gratuitously; and 11
(ii) there is, in fact, no employer–employee relationship; 12
(11) WHO is employed in a cafe, drive–in, drugstore, restaurant, tavern, or 13
other similar establishment that: 14
(i) sells food and drink for consumption on the premises; and 15
(ii) has an annual gross income of $400,000 or less; 16
(12) WHO is employed in agriculture if, during each quarter of the preceding 17
calendar year, the employer used no more than 500 agricultural–worker days; 18
(13) WHO is engaged principally in the range production of livestock; 19
(14) WHO is employed as a hand–harvest laborer and is paid on a piece–rate 20
basis in an operation that, in the region of employment, has been and customarily and 21
generally is recognized as having been paid on that basis, if: 22
(i) the individual: 23
1. commutes daily from the permanent residence of the 24
individual to the farm where the individual is employed; and 25
2. during the preceding calendar year, was employed in 26
agriculture less than 13 weeks; or 27
(ii) the individual: 28
4 HOUSE BILL 582
1. is under the age of 17; 1
2. is employed on the same farm as a parent of the individual 2
or a person standing in the place of the parent; and 3
3. is paid at the same rate that an employee who is at least 4
17 years old is paid on the same farm; 5
(15) WHO is a covered employee under the Secure Maryland Wage Act; or 6
(16) (i) WHO has entered into a contract to play baseball at the minor 7
league level; and 8
(ii) WHO is compensated in accordance with the terms of a collective 9
bargaining agreement that expressly states the wages and working conditions of 10
employees. 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 12
October 1, 2025. 13