The Maine Department of Labor (MDOL) has announced that Maine’s minimum wage will increase to $15.10 per hour effective January 1, 2026. This is an increase from the current rate of $14.65 per hour and is based on a 3.1 percent rise in the cost-of-living index (CPI-W) for the Northeast Region between August 2024 and August 2025.
What Employers Need to Know
- New Minimum Wage: As of January 1, 2026, the state minimum wage will be $15.10 per hour. This adjustment applies statewide, including to agricultural workers, who are now covered under Maine’s minimum wage law.
- Service Employee (Tip Wage): The direct cash wage for service employees will increase to $7.55 per hour. Employers must ensure that service employees earn at least the full minimum wage of $15.10 per hour when tips are included. To qualify as a service employee, the monthly tip requirement will rise from $185 to $191.
- Minimum Salary Threshold: The threshold for salaried workers exempt from overtime will increase to $871.16 per week ($45,300.32 annually). Employers should remember that meeting the salary threshold alone does not guarantee exempt status. Job duties must also meet exemption criteria under state and federal law.
Resources for Employers
- Download the required minimum wage poster free of charge: Maine DOL Posters
- Review the minimum wage and overtime law: Maine Statute Title 26, Chapter 7, Section 664
- Learn more about Maine labor standards: Maine DOL Bureau of Labor Standards
How KMA Can Help
Changes to wage and hour laws can create compliance challenges. KMA’s HR consultants can help you review your pay practices, update policies, and ensure your business is aligned with both state and federal requirements.
Contact us today to schedule a compliance review and make sure your organization is ready for 2026.