Maines hourly minimum wage will rise to $13.80, and the minimum wage for service employees will increase to $6.90 effective Jan. 1, 2023, a state labor department official said Nov. 9. The new salary threshold will be $796.17 per week, or a total of $41,401 per year. Maine's Minimum Wage to Increase to $13.80 Per Hour in 2023 Pursuant to Maine law (Maine statute Title 26, chapter 7, section 664), effective January 1, 2023, the state minimum wage will increase from $12.75 to $13.80 per hour, based on data recently made available by the U.S. Department of Labor's Bureau of Labor Statistics. Please note: all employers who are on the following list are required to display one of these posters in a public area. On January 1, Maine's minimum wage increased to $12.75 per hour. It also stated that a service charge included in a bill in a banquet or private club setting is not a tip and that the customer must be notified of this, that all employees in the banquet or private club setting must be compensated in accordance with the State's minimum wage and overtime laws and that the service charge can be used to meet these obligations. Employers are still liable for all recordkeeping and poster requirements under federal, state, and municipal regulations. Top of Page A new year means higher minimum wages in 23 states, leading to increased pay for an estimated 8.4 million US workers, according to the Economic Policy Institute. [2] It is also important to note the clear and obvious distinctions between states such as Maine and states such as Massachusetts, Rhode Island, and Connecticut. 1 These earnings estimates do not account for the Maine income tax , federal income tax, or local/municipal income taxes. 0000009495 00000 n
In addition, employers must ensure that their record keeping meets the highest standards among the three enforcement entities. Proudly powered by Newspack by Automattic. Each year, the new minimum wage will take effect on January 1st. 0000013668 00000 n
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Again, however, the defendant appealed and won because the case was dismissed on want of jurisdiction.[1]. Telephone: Maine Department of Labor 623-7900, Maine Workers' Compensation Comm. LD 1445 defined a livable wage as, the statewide average livable wage for a single-parent, one-child household as reported by the Department of Labor in the most recent annual report required.[3] It further directed the Department of Labor on how to calculate a livable wage, and directed it to both measure the Statewide difference between the total livable wages for those workers paid less than a livable wage and the total actual wages paid those same workers for that year, as well as to produce a report that quantifies and summarizes data gathered and analyzed from all federal, state and local social service agencies and offices regarding the costs of providing direct services to all workers in the State paid less than a livable wage. In 2009 LD 64 amended this process so that the annual report became a biennial report. Log in to access all of your BLAW products, Maines hourly minimum wage is expected to rise in 2023 to $13.80 from $12.75, The tipped minimum wage and tip credit are both expected to rise to $6.90 from $6.38. Meanwhile, the 2023 tipped minimum wage in Maryland is $3.63, remaining the same. The adjustment is based on the change in the Consumer Price Index (CPI) for All Urban Wage Earners and Clerical Workers for the Northeast Region from August 2021 to August 2022, rounded to the nearest five cents. The Fair Labor Standards Act (FLSA) and Maine labor law requires all employers in Maine to visibly display an approved Maine minimum wage poster, and other Maine and federal labor law posters, to ensure that all employees are aware of federal and Maine labor law and overtime regulations. How much will the minimum wage increase? In 2007, LD 1543 established the fact that, The tips received by a service employee become the property of the employee and may not be shared with the employer, and it further stipulated that tip pooling must be voluntary. Looking for a new job? The state retains jurisdiction over most other wage and hour regulations to include leave, breaks, overtime, severance pay, vacation pay, prevailing wages and youth employment. Just under 71,000 Mainers currently earn less than the new minimum wage, according to the Center's estimates. Employers found in court to be not liable will have to pay for their own legal representation. In 2023, Maine minimum wage is: $13.80; $6.90 (tipped employees) Michigan. Conversely, this also means that for stretches of time there was no increase in the minimum wage. 0000054770 00000 n
Since then, Maine's minimum wage has been adjusted either independently or in accordance with the federal minimum wage. xref
Fully updated for March 2017! The federal minimum wage rate at this time was raised to $5.85/hour, $6.55/hour, and $7.25/hour, respectively. Thus the state of Maine currently enjoys a minimum wage higher than the federal wage. 0000042794 00000 n
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Despite this, though, Maine still enjoys a higher minimum wage than the Federal Government demands and, subsequently, has a higher minimum wage than 29 states and equal to that of two other states. A full time minimum wage worker in Maine working 40 hours a week, 52 weeks a year, will earn $110.40 per day, $552.00 per week, and $28,704.00 per year1. Also read: Maine's minimum wage to rise to $13.80 on Jan. 1; . Maine. The tipped minimum wage and maximum tip credit are both equal to half of the state minimum wage. 0000001336 00000 n
The Department of Labor is an equal opportunity provider. The minimum wage applies to most employees in Maine, with limited exceptions including tipped employees, some student workers, and other exempt occupations. Typically, if an employer's headquarters/office is in the municipality with a higher minimum wage, those workers would be subject to the local minimum. 0000024968 00000 n
Beginning after New Year's Day, the state is also implementing a new "tip wage," or service employee minimum wage, the release stated. Some states require workers who work over a certain number of daily hours to be eligible for this overtime rate as well (Maine law does not specify a daily overtime limit). 0000025499 00000 n
The Maine minimum wage was last changed in 2008, when it was raised $6.55 from $7.25 to $13.80. It has also changed in regards to service employees and how tips are treated. Since 1974, however, Maine has increased its minimum wage twenty-two times- both independently and to remain in accordance with the federal minimum wage. These stretches included: 1960-1964, 1992-1995, 1998-2001, and 2009-2014 (the present). Then, in 2011, LD 1786 terminated the requirement that the Department of Labor calculate and then report the livable wage. http://www.dol.gov/whd/minwage/america.htm, http://www.mainelegislature.org/legis/bills/search_ps.asp, Department of Labor Freedom of Access Contact Information, Toll-Free: 1-800-593-7660 (Customer service available Mon-Fri, 8:00 a.m. to 3:00 p.m.), TTY/Relay for Deaf and hard of hearing: Maine relay 711. Since most hourly employees don't work full time and/or take time off, actual yearly earnings will likely be lower. There have, throughout Maines legislative history but particularly in more recent legislatures, been attempts to tie the minimum wage to the cost of living; these have all failed to pass. Instituting a private right of action clause to address the enforcement of a municipal ordinance means that a worker who believes that he or she has been underpaid could take their own court action, but more commonly would seek legal counsel and sue the employer for the lost wages. The Department of Labor is an equal opportunity provider. All employees must be paid at least the new minimum wage on the first pay date in January, regardless of what pay period you are paying out, for your business tomaintain compliance. It is interesting to note that our current stretch of five years in which the minimum wage has not risen is the longest stretch of time without an increase in the state of Maine since the original minimum wage was enacted. ME Department of Labor Beginning on January 1, 2021, the minimum wage will increase each year consistent with the percentage increase for the prior year in the Consumer Price Index for Urban Wage Earners and Clerical Workers, CPI-W, for the Northeast Region, or its successor index. One of the changes that Maine businesses need to be aware of is the new state and local minimum wages. Despite opposition from the city's mayor, seven members of the city council, and dozens of Portland businesses, the measure passed with 60 percent of the vote. 0000002970 00000 n
But from 1985-1990, the state of Maines minimum wage was higher than the Federal. The rate hikes are the result of a variety of factors, including inflation, state legislation, and ballot measures. 0000002924 00000 n
Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on Reddit (Opens in new window), Click to email a link to a friend (Opens in new window). No Smoking Signage for the Workplace - Optional: Toll-Free: 1-800-593-7660 (Customer service available Mon-Fri, 8:00 a.m. to 3:00 p.m.), TTY/Relay for Deaf and hard of hearing: Maine relay 711. The Maine minimum wage applies to most employees, with limited exceptions, including certain tipped employees, students or part-time workers, and other exempt occupations. 0000001603 00000 n
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LOCAL MINIMUM WAGE 0000012455 00000 n
Maine employers may pay 18 year olds and minors the youth minimum wage of $4.25 for the first 90 days of employment. Effective January 1, 2023, the minimum wage in Maine is $13.80 per hour. The Maine Center for Economic Policy says newly released data from the U.S. Bureau of Labor Statistics show an 8% increase in prices over the past year. Employers may use the tip credit if the sum of employees tips and wages equals at least the state minimum wage for all hours worked within a seven-day workweek. Workers receive a higher minimum wage in Maine that exceeds the Federal Minimum Wage of $7.25. regardless of profit or size. The differences between the many states and the Federal government certainly have a few reasons. You may be paid under the Maine minimum wage if you fit into one of the following categories: While Maine's state minimum wage is $13.80 per hour, there are localities that have set their own, higher minimum wages that apply to some or all employees within their jurisdictions. Municipal Minimum Wage Ordinances Employers with employees who work in Bangor and/or Portland or any other municipality that passes a local minimum wage ordinance, ma y be subject to additional regulations and should check with municipal . See the full list of states and the adjusted rates, below. Maines salary threshold for executive, administrative, Log in to access all of your BLAW products, Maines minimum wage will rise to $13.80 from $12.75 effective Jan. 1, 2023, The minimum cash wage for service employees will rise to $6.90 from $6.38. 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