Here’s What You Need to Know About the Minimum Wage Increase in Maine

We have some good news for people working minimum wage hourly jobs and jobs where a significant portion of your pay is based on tips and gratuities.

The Increase to Maine's Minimum Wage

According to an article on the WABI website, Maine law requires the Maine Department of Labor to review and adjust the state’s minimum wage each year based on changes in the cost of living in the Northeast. This requirement was approved by Maine voters in 2016.

Because of this, the state's minimum wage will increase from $15.10 to $15.70 on January 1st, 2027

Maine's Tip Wage Is Increasing

If you work a job where a significant amount of your pay comes from tips, we've got some good news.

Maine’s minimum cash wage for tipped workers will increase from $7.55 to $7.85 per hour, and their combined wages and tips must equal at least $15.70 per hour. Workers must also earn at least $199 per month in tips to qualify as service employees.

The Overtime Exemption Level Is Increasing

If you work a salaried position, there is a good chance that you are "exempt".  Basically, that means that you are required to perform your duties no matter how many hours it takes.  This means you may end up working 35 hours or 55 hours.  The benefit is that you will always make the same amount of money.  The downside is that you may work way more than 40 hours in a week and get stuck with the same pay.

For years, there has been an exemption level.  Basically, a certain minimum salary to make it lawful for you to be exempt from overtime.  If you were paid over that, you could not get overtime.  If you were paid less, you could claim overtime if you worked more than 40 hours a week.

That amount is now increasing.

As of January 1st, it will go from $45,300 to about $47,100.

A Brief History of Minimum Wage Laws in the United States

According to the Economic Policy Institute, the Fair Labor Standards Act (FLSA) was created during the Great Depression in the 1930s, when millions of Americans struggled to find work and support their families.

President Franklin D. Roosevelt signed the law on June 25, 1938. It established a federal minimum wage, limited the number of hours employees could work before earning overtime pay, and placed restrictions on child labor. The first minimum wage was $0.25 per hour.  

Supporters believed the law would protect workers from unfair treatment and improve working conditions. Although some businesses argued that higher wages would cost jobs, the FLSA became an important step toward protecting American workers.