The new federal rule that would have increased the salary threshold was recently blocked by court action. Therefore, starting Jan. 1, 2025, the new minimum salary threshold in Maine will be $845.21 per week, or $43,951 per year.
This is only one of the factors used in determining whether a worker is exempt from overtime pay under federal or state law. An individual can earn more than the minimum salary threshold and still be eligible for overtime. The duties of each worker must be considered as part of this analysis.
The minimum wage and overtime law can be found here: http://legislature.maine.gov/legis/statutes/26/title26sec664.html. The Maine Labor Department also has more information available on its website at https://www.maine.gov/labor/labor_laws/wagehour.shtml .
In other labor law reminders for January:
Paid Family and Medical Leave Registration & Contributions
Beginning Jan. 1, 2025, employers with employees in Maine will be required to register on the new Paid Family and Medical Leave Portal and begin payroll contributions.
The Maine Department of Labor is inviting employers and third-party administrators to December webinars at https://www.maine.gov/labor/news_events/article.shtml?id=13128223 that will focus on what they need to know about the new Paid Family and Medical Leave online contributions portal before they need to register in January.
Benefits are scheduled to begin May 1, 2026.
To keep up to date on Maine Paid Family and Medical Leave, register for webinars, and see the answers to frequently asked questions, visit https://www.maine.gov/paidleave/
Minimum Wage to Increase
Pursuant to Maine law (Maine statute Title 26, chapter 7, section 664), effective Jan. 1, 2025, the state minimum wage will increase from $14.15 to $14.65 per hour, based on data by the U.S. Department of Labor's Bureau of Labor Statistics. Maine law, amended by citizens referendum in 2016, requires annual adjustments to the minimum wage based on the cost-of-living index (CPI-W) for the Northeast Region. Between August 2023 and August 2024, there was a 3.6 percent increase in the CPI-W.
In addition to the minimum wage, the new "tip wage," or service employee minimum wage, in 2025 will be $7.33 per hour. This means that service employees must receive at least a direct cash wage of $7.33 per hour from the employer. The employer must be able to show that the employee receives at least the minimum wage of $14.65 per hour when the direct wage and tips are combined at the end of the week. The amount of tips needed to qualify as a service employee will increase from $179 per month to $185 per month.
Employers can download the required minimum wage poster at no cost on the Department's website: https://www.maine.gov/labor/posters/index.shtml <
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