Maine Department of Labor Announces 2022 Minimum Wage Increases

Maine's minimum wage will increase again in 2022.

Maine state law (26 MRS §664) requires the Maine Department of Labor to consider increasing the state minimum wage on an annual basis, based upon increases, if any, in the cost of living.?The increase is determined based upon Northeast Region cost of living index data reported by the United States Department of Labor’s Bureau of Labor Statistics.

On September 23, 2021, the Maine Department of Labor announced the minimum wages that will take effect on January 1, 2022, highlighting a 4.9% increase to the state minimum wage which will rise from $12.15 per hour to $12.75 per hour.?

Likewise, the new “tip wage,” or service employee minimum wage, in 2022 will rise to $6.38 per hour.?This means that service employees must receive at least a direct cash wage of $6.38 per hour from the employer and their total pay, including tips, must amount to at least $12.75 per hour when combined at the end of the week.?

With rising minimum wages come rising salary thresholds for exempting an employee from overtime.?Starting January 1, 2022, the new minimum salary threshold is $735.59 per week, or $38,251 per year.?Salary is not the only factor used to determine whether an employee is exempt from overtime pay and employers must still meet duties-based requirements under state and federal law.?Regardless, an employer cannot exempt any employee from overtime pay unless their salary meets this threshold, even if they meet all of the other requirements.?

There is no “grace” period for these changes. Employers throughout the state must ensure that they are compliant with these new rates on January 1, 2022.??

For nearly sixty years, The Bennett Law Firm has been a leader in helping management navigate wage and hour issues while staying ahead of changes in policy.?For questions or for more information on this issue, please reach out at [email protected]!