Effective Jan. 1, 2025, the Maine state minimum wage will increase from $14.15 to $14.65 per hour.
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 necessary to qualify as a service employee will increase from $179 per month to $185 per month.
The minimum salary threshold for exempting a worker from overtime pay must exceed 3,000 times the State’s minimum wage or the annualized rate established by the US Department of Labor, whichever is higher.
Starting Jan. 1, 2025, the US Department of Labor rate will be higher, therefore, the new minimum salary threshold will be $1,128 per week, or $58,656 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.
The Maine Department of labor also has more information HERE.
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