Effective January 1, 2018, Maine’s minimum hourly wage increased to $10.00 per hour. The maximum tip credit and the minimum salary for employees exempt from minimum wage and overtime requirements also increased effective January 1.
- The direct service hourly wage for tipped workers is the same as last year with the maximum tip credit increasing from $4.00 to $5.00. The tipped overtime rate for service workers will be $10.00 per hour ($10 x 1.5 = $15.00 less $5 tip credit).
- The minimum salary for exempt salary employees will rise to $576.93 per week effective January 1 as Maine law specifies that employers must pay a minimum annual salary of 3,000 times the minimum hourly wage. This weekly rate annualizes to $30,000.
|Effective Date||Maine Minimum Hourly Wage||Maine Minimum Direct Service Hourly Wage||Maine Maximum Hourly Tip Credit|
|1/1/2021||Tied to Consumer Price Index (CPI)||$6.00 + 1/2 the CPI||$6.00 + 1/2 the CPI|
For City of Portland employers, the minimum hourly wage is currently $10.68. For employers who claim the tip credit for service workers who normally earn at least $30 per month in tips, the direct wage that must be paid is the state of Maine direct wage of $5.00 per hour in 2018 (as specified in the chart above), because that is more protective for the worker.
Employer Action: We recommend employers review their employee pay rates to ensure compliance. Now is also a great time to ensure your employment posters are up-to-date including the new state minimum wage poster. Maine recently enacted legislation including penalties for not meeting the employment posting requirements. Please see the state of Maine website for more information and free employment posters which may be downloaded.
For More Information
If you need help meeting these or other compliance requirements, contact KMA today.