Maryland’s state minimum wage could be on the way up once again. Lawmakers have a plan Thursday to not only increase the minimum wage but also make tips tax-free.  Maryland voters will eventually get to decide if this happens — possibly as soon as next month — but some business groups are already warning that the move could hurt them. 

State lawmakers in Annapolis introduced the legislation Thursday. If passed, a constitutional amendment would go before voters in November 2026. 

Maryland’s minimum wage went up to $15 an hour back in July but this bill raises it to $20 in five years. It also phases out the state’s tipped wage of $3.63/hour and will give tipped workers full minimum wage, but they can keep tips tax-free. 

Prince George’s County Del. Adrian Boafo is the sponsor.

"Prices at restaurants have gone up, people have experienced that in the pocket but the reality is when workers haven’t experienced a raise in a long time so it’s time for us to give them a raise," Boafo said. 

But not everyone is happy about this. some business groups are gearing up to fight this proposal. Just last week, Maryland Gov. Wes Moore said the state’s economy wasn’t growing fast enough. 

Businesses and restaurants say they’re already struggling in a sluggish economy, and higher wages won’t help. Cailey Locklair is the president of the Maryland Retail Alliance.

"Listen Maryland employers are at a breaking point! And when you look at all of the mandated increases and fees of the past couple of years what’s being considered," Locklair said.

This minimum wage hike could wind up being one of the biggest fights in Annapolis this year. Joint hearings between Maryland’s House of Delegates and Senate are expected to be held in February.

Click here to view the article on Fox5.