Ocean City assesses impact of minimum wage increase

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Ocean City Boardwalk

The Ocean City Human Resource Director and Budget Manager gave a presentation on Maryland’s recently enacted legislation that increased Minimum Wage to $11 this year and will continue to raise it to $15 an hour by 2024.

The presentation covered the impact of the cost to the City and the proposed adjusted pay grade scale that was created to adjust to the changes while remaining fiscally sound and competitive in the job market.

The raise impacts primarily temporary seasonal workers and very few full-time workers. In the proposed plan the bulk of the hourly pay increase is absorbed in the bottom 7 grades of a 30 grade pay scale.

The remainder of the pay structure stays intact with a five-percent separation between grades. In the proposed plan, the pay range minimums increase each year.

Pay range maximums are proposed to increase every other year. The estimated incremental costs over five years came to a little over $1.8 million.

The council voted 6-0 with President Lloyd Martin absent on the five year plan with an annual approval.