Maine’s minimum wage is going up

Maine (WMTW) - The minimum wage in Maine will increase from $13.80 to $14.15 per hour on January 1, 2024, pursuant to state law.

The law, which was amended by citizen’s 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 2022 and August 2023, there was a 2.4 percent increase in the CPI-W.

The new “tip wage,” or service employee minimum wage, in 2024 will be $7.08 per hour. This means that service employees must receive at least a direct cash wage of $7.08 per hour from the employer. The employer must be able to show that the employee receives at least the minimum wage of $14.15 per hour when the direct wage and tips are combined at the end of the week.

The minimum salary threshold for exempting a worker from overtime pay is also based on the minimum wage. Starting January 1, 2024, the new minimum salary threshold is $816.35 per week or $42,450.20 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.

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