On September 23, 2021, Maine announced the state minimum wage rate will increase to $12.75 per hour for non-exempt employees. State law requires that the minimum wage rate be adjusted every year based on the cost-of-living index for the Northeast.
On January 1, 2022, the minimum wage rate for “service employees” in Maine will also increase to $6.38 per hour.
A “service employee” is defined as someone who regularly receives more than $30 a month in tips. Employers must ensure that service employees receive wages at or above the state minimum wage rate.
Overtime Exemption Threshold
In Maine, the minimum salary threshold for exempt employees is based on the minimum wage. As a result, effective January 1, 2022, the minimum salary threshold is $735.59 per week, or $38,251 per year.
Next Steps for Employers
Employers are encouraged to review the state’s overtime laws or Maine’s Department of Labor summary to learn more about state overtime exemptions. Employers should prepare to adjust their payroll practices and procedures to ensure compliance with these new rates by January 1, 2022.