MAINE, USA — Minimum wage in Maine to increase to $13.80 per hour in 2023
The minimum wage in the state of Maine is set to increase to $13.80 per hour next year.
Maine law, which was amended by a citizen's referendum in 2016, requires the state's minimum wage to have annual adjustments "based on the cost-of-living index for the Northeast Region," the Maine Department of Labor said in a news release Tuesday.
According to the release, pursuant to Maine law (Maine statute Title 26, chapter 7, section 664), the state's minimum wage will increase from $12.75 to $13.80 per hour beginning on Jan. 1, 2023.
Beginning after New Year's Day, the state is also implementing a new "tip wage," or service employee minimum wage, the release stated. It will require service employees to receive "at least a direct cash wage" of $6.90 per hour from their employer.
"The employer must be able to show that the employee receives at least the minimum wage of $13.80 per hour when the direct wage and tips are combined at the end of the week," MaineDOL said in the release.
Additionally, Maine's minimum salary threshold to withhold an employee from receiving overtime pay will also be based on minimum wage. According to the release, starting on Jan. 1, 2023, the minimum salary threshold for workers is $796.17 per week or $41,401 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."
For more information about Maine's new minimum wage and overtime law, click here.