Effective January 1, 2023 the minimum wage and salary level for white-collar exemptions increases as follows:
Minimum Wage and Tip Credits
The minimum wage in Maine increases from $12.75 to $13.80 under an annual inflation adjustment required by the state statute. The adjustment is based on the change in the Consumer Price Index (CPI) for All Urban Wage Earners and Clerical Workers for the Northeast Region from August 2021 to August 2022, rounded to the nearest five cents.
As a result of the minimum wage increase, the maximum tip credit increases from $6.37 to $6.90. The amount of tips that an employee must receive each month in order to qualify as a service employee for whom an employer may claim a tip credit increases from $100 to $175.
Minimum Salary for Executive, Administrative and Professional Employees
The minimum salary for executive, administrative and professional employees exempt from Maine’s minimum wage and overtime requirements increases from $735.59 per week to $796.17 per week.
Next Steps for Employers
Employers should prepare to adjust their payroll practices and procedures to ensure compliance with these new rates by the end of the year, including reviewing their compensation levels and making necessary changes by January 1, 2023. Updates might result in increasing an employee’s hourly wage or salary or reclassifying exempt employees to non-exempt if they will no longer meet the exemption salary requirement.
