Maine Workers to See Minimum Wage Increase in 2025

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Wage Increase to Benefit Workers Across the State

AUGUSTA, Maine — Starting January 1, 2025, Maine’s minimum wage will increase from $14.15 to $14.65 per hour, the Maine Department of Labor (MDOL) announced this week. The wage hike is based on data from the U.S. Department of Labor’s Bureau of Labor Statistics, reflecting a 3.6 percent rise in the cost-of-living index (CPI-W) for the Northeast Region between August 2023 and August 2024.

The change comes as part of a 2016 citizen referendum that requires annual adjustments to the state’s minimum wage to keep pace with inflation. This latest increase aims to help workers maintain their purchasing power amid rising costs of living.

Service Employees Also See a Raise

In addition to the standard minimum wage increase, Maine’s "tip wage" or service employee minimum wage will rise to $7.33 per hour, up from the current $7.08. Under the new rule, employers must ensure that tipped workers receive a combined total of at least $14.65 per hour through wages and tips. If tips fall short, the employer must make up the difference.

The minimum amount of tips required for an employee to qualify as a service worker will also rise, from $179 per month to $185 per month.

Changes to Overtime Rules and Exemptions

Along with the wage adjustments, the MDOL announced new rules affecting overtime exemptions. Beginning January 1, 2025, the minimum salary threshold to exempt workers from overtime pay will increase to $1,128 per week, or $58,656 per year, based on U.S. Department of Labor guidelines. Workers earning above this amount may still qualify for overtime pay depending on their duties, as both federal and state law require an analysis of each employee's role and responsibilities.

These updates follow the July 1, 2024, implementation of a U.S. Department of Labor rule that revises the Fair Labor Standards Act exemptions for executive, administrative, and professional (EAP) employees, setting higher salary levels for exempt workers and requiring regular updates to reflect current earnings data.

Resources for Employers

Employers can access the updated minimum wage poster on the Maine Department of Labor’s website at no cost. Further information on minimum wage laws, overtime regulations, and the EAP exemption is also available online.

As Maine’s economy continues to adapt to inflationary pressures, these wage and regulation changes aim to ensure fair compensation for workers while providing clarity for employers.

Attribution source: Newscentermaine.com