Maine State Minimum Wage Increase Starting 2025

Effective January 1, 2025, the state minimum wage in Maine will increase from $14.15 to $14.65 per hour. In addition, the new tipped wage, or service employee minimum wage, will increase to $7.33 per hour. This means that service employees must receive a direct cash wage of at least $7.33 per hour and receive at least $14.65 per hour of combined direct wage and tips. Starting in 2025, in order to qualify as a service employee, the employee must receive at least $185 per month in tips (up from the current $179 per month). NOTE: In Portland, the minimum wage is $15 per hour and $7.50 for service employees. The required minimum wage poster will be available on the Maine DOL website at no charge to employers.

Salary Threshold to Increase in 2025 for Exempt Employees

As a reminder, the U.S. Department of Labor (DOL) recently announced its final rule raising the salary threshold for exempt employees. The final rule increased the exempt salary threshold to $844 per week ($43,888 per year) on July 1, 2024. Starting on January 1, 2025, the exempt salary threshold is expected to increase again to $1,128 per week ($58,656 per year). It is possible that the final January 1, 2025 rule may not go into effect; however, employers should start preparing now for these changes.

As always, reach out to the KMA team for guidance and support.