Maine is among the states in the U.S. that have planned an increase in the minimum wage for 2024. This increase is part of an ongoing effort to adjust wages based on the cost of living, and it will affect both the standard hourly minimum wage for non-exempt employee and and the salary range for exempt employees. Additionally, the tipped minimum wage will also see an adjustment.
At Paper Trails, we take an active approach to monitoring labor compliance challenges, such as minimum wage increases, and to broadcasting this information widely so that business owners like you can remain informed and compliant. In this article, we will breakdown the new minimum wages in Maine for 2024.
What is Maine’s minimum wage for 2024?
Due to legislation passed in 2016, Maine’s minimum wage must increase to keep up with the cost of living. The new hourly minimum wage in Maine will be $14.15 per hour for non-exempt employees, up from $13.80 in 2023. The new salary range for exempt employees will be $816.35 a week, or $42,450.20 a year.
**There is a proposed rule change that seeks to raise the federal salary threshold to $1,059 per week, or $55,068 annually. Should this rule go into effect, the new threshold would be greater than Maine’s threshold, making the federal threshold the one businesses must follow. Stay tuned for more as we hear more about this proposed bill.**
Maine’s tipped minimum wage for 2024
In addition to the standard minimum wage, there is also a separate minimum wage for tipped employees. Tipped employees are workers who customarily and regularly receive more than $30 a month in tips. As of January 1, 2024, the minimum wage for tipped employees in Maine will be $7.08 per hour. This is increased from $6.90 per hour in 2023.
Employers are required to pay tipped employees the full minimum wage of $14.15 per hour, but they can take a tip credit of up to $7.08, which is the difference between the standard minimum wage and the tipped minimum wage. However, if an employee’s tips combined with the employer’s direct wages do not equal the standard minimum wage, the employer must make up the difference.
When will minimum wage change take place?
Each year, the new minimum wage will take effect on January 1st. All employees must be paid at least the new minimum wage on the first pay date in January, regardless of what pay period you are paying out, for your business to maintain compliance.
The increase in Maine’s minimum wage to $14.15 per hour and the tipped minimum wage to $7.08 per hour will take effect on January 1, 2024. It is crucial for both employers and employees to understand the differences between exempt and non-exempt employees and how these classifications affect the payment of minimum hourly wages and salaries.
Employers should review their payroll and make any necessary adjustments to comply with the new wage requirements. Employees should also be aware of their rights and ensure they are receiving the correct wages.