What's New in State Laws: Maine
Maine Minimum Wage
The Maine Department of Labor (MDOL) announced on September 11, 2024, that pursuant to Main law (26 Maine Rev. State. §664), the state minimum wage will increase from $14.15 to $14.65 per hour on January 1, 2025, based on data recently made available by the US Department of Labor Bureau of Labor Statistics. Main law requires annual adjustments to the minimum wage based on the cost-of-living index CPI0W) for the Northeast Region. Between August 2023 and August 2024, there was a 3.6% increase in the CPI-W. In addition to the minimum wage, the new "tip wage," or service employee minimum wage, 2025, will be $7.33 per hour. This means that service employees must receive at least a direct cash wage of $7.33 per hour from the employer. The employer must be able to show that the employee received at least the minimum wage of $14.65 per hour when the direct wage and tips are combined at the end of the week. The amount of tips necessary to qualify a service employee increase from $179 per month to $185 per month (State of Maine Department of Labor, News Release, September 11, 2024)
Maine Overtime
Overtime exemption thresholds are tied to the state minimum wage. Effective January 1, 2025, the Maine minimum wage will increase to $14.65 per hour. Per Maine law, the minimum salary threshold for exempting a worker from overtime pay must exceed 3,000 times Maine's minimum wage or the annualized rate established by the US Department of Labor, whichever is higher. Starting January 1, 2025, the US Department of Labor rate will be higher, therefore, the new minimum salary will be based on the federal EAP (Executive - Administrative - Professional) salary threshold, which for 2025 will be $1128 per week, r $58656 per year. This is only one of the factors used in determining whether a worker is exempt from overtime pay under federal or state law. An individual can earn more than the minimum salary threshold and still be eligible for overtime. The duties of each worker must be considered as part of this analysis (State of Maine Department of Labor, News Release, September 11, 2024).
Maine Posters
Effective January 1, 2025, the minimum wage in Maine will increase to $14.65 per hour. The Maine Department of Labor has updated the English version of the poster, at https://www.maine.gov/posters/index.shtml to reflect the increase in minimum wage.
Source(s): Gallagher via Wolters Kluwer, received on October 8, 2024; Maine News Release (September 11, 2024) accessed on October 11, 2024; Maine Poster, accessed on October 11, 2024.
This was an e-mail Compliance received from Gallagher "Compliance Directions", received on Tuesday October 8, 2024. We decided to break the information out by State. Compliance Calendar will be updated appropriately.