AUGUSTA, Maine — The Maine Department of Labor (MDOL) announced Monday that beginning on January 1, 2021, the minimum wage in Maine will be $12.15 per hour.
The increase from $12 to $12.15 is pursuant to Maine law, which requires annual adjustments to the minimum wage by the cost of living index beginning in 2021. This follows $1 annual increases to the minimum wage each of the past three years.
The Maine minimum wage was $7.50 per hour until 2017 when it increased to $9. Since then, it has increased by $1 each year. Beginning in 2021, the minimum wage will be increased by the increase in the cost of living.
The law to implement the incremental increase was overwhelmingly approved by voters in 2016.
“The modest 15 cent increase in 2021 will help the minimum wage keep pace with the cost of living and preserve the wage floor for minimum wage workers,” MDOL Commissioner Laura Fortman said in a release. “According to a study conducted by MDOL in 2017, most workers in Maine earning minimum wage were 25 years old or older, and two-thirds were women.”
In addition to the minimum wage itself, the MDOL has calculated the new “tip wage,” or service employee minimum wage, in 2021 to be $6.08 per hour, an 8-cent increase from the current $6. This means that service employees must receive at least a direct cash wage of $6.08 per hour from the employer. The employer must be able to show that the employee receives at least the minimum wage of $12.15 per hour when the direct wage and tips are combined at the end of the week.
The federal minimum wage is $7.25 per hour.
Maine has one of the highest minimum wages in the country—alongside Arizona, California, Connecticut, and Oregon at $12—and is one of 18 states that has scheduled annual adjustments. The District of Columbia has the highest minimum wage at $15 per hour, followed by Massachusetts at $12.75.
Many activists and politicians have been calling for a national minimum wage increase to $15. Many privately-owned businesses and companies implement their own minimum wage.
Last week, Hobby Lobby raised its minimum wage to $17 for full-time employees, and Walmart announced a complete overhaul of its operating models, increasing pay for approximately 165,000 of its employees. The new wage ranges for the hours team lead roles will start between $18 and $21 an hour and can go up to $30 an hour in Walmart Supercenters.
