AUGUSTA, Maine — The Maine Department of Labor (MDOL) announced Tuesday that the state's minimum wage would increase beginning Jan. 1, 2025.
It will increase from $14.15 to $14.65 per hour, based on recent data from the U.S. Department of Labor's Bureau of Labor Statistics, according to a news release from the MDOL.
"Maine law, amended by citizens referendum in 2016, requires annual adjustments to the minimum wage based on the cost-of-living index (CPI-W) for the Northeast Region. Between August 2023 and August 2024, there was a 3.6 percent increase in the CPI-W," the release stated.
Also beginning in January, the new "tip wage," or service employee minimum wage will be set at $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 receives 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 release stated. "The amount of tips necessary to qualify as a service employee will increase from $179 per month to $185 per month."
Overtime
According to the MDOL, the minimum salary threshold for exempting a worker from overtime pay must exceed 3,000 times the state's minimum wage or the annual 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 threshold will be $1,128 per week, or $58,656 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," the release stated. "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."
Helpful resources
Employers can download the required minimum wage poster at no cost on the department's website.
The minimum wage and overtime law can be found here.
The department also has more information available on its website.
Reminder: The new USDOL overtime rule went into effect on July 1
On July 1, 2024, the U.S. Department of Labor’s final rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees, went into effect.
"The final rule updates and revises the regulations issued under section 13(a)(1) of the Fair Labor Standards Act implementing the exemption from minimum wage and overtime pay requirements for executive, administrative, and professional (EAP) employees. Revisions include increases to the standard salary level and the highly compensated employee total annual compensation threshold, and a mechanism for the updating of these earnings thresholds to reflect current earnings data," according to the release. "While this new rule will take effect in Maine, Maine law does not have an exemption from overtime for highly compensated employees."
To fall within the EAP exemption, an employee generally must meet three tests:
- Be paid a salary, meaning that they are paid a predetermined and fixed amount that is not subject to reduction because of variations in the quality or quantity of work performed;
- Be paid at least a specified weekly salary level; and
- Primarily perform executive, administrative, or professional duties, as provided in the Department's regulations.
How does this affect Maine?
The EAP exemption in Maine law states that Maine adopts the federal EAP salary threshold if it is higher than the Maine-based threshold.
The new minimum salary as of January 1, 2025, will be $1,128 per week
More information on the rule can be found on the U.S. Department of Labor’s website.