0126 MRS § 664 — CPI-W Northeast indexing + $185/month tip threshold
Maine's minimum wage is $14.65/hr effective January 1, 2026 — under 26 MRS § 664. The rate took effect after annual CPI-W Northeast Region indexing per state statute. Maine voter-led minimum wage initiatives established the indexing framework. Annual adjustments based on August-over-August percentage increase, rounded to nearest $1.
Tipped wage $7.33 cash + tip credit reaching $14.65: tipped workers (defined as service employees earning more than $185/month in tips) may be paid 50% of state minimum if combined cash + tips reach state minimum. Tip credit reaches $14.65. Employers must notify workers they will be paid tipped wage rates before they begin working.
$185/month tip threshold is distinctive among states. Federal threshold: $30/month. Most states follow federal $30/month or use lower thresholds (KS $20/month, AR $20/month). Maine's $185/month threshold is much higher — workers must consistently earn substantial tips to qualify as tipped employees.
Portland and Rockland $15.50: both cities have local minimum wage ordinances exceeding state minimum. Tipped wage in Portland and Rockland is $7.75/hr (50% of local minimum). Multi-state operators with workers in these cities must pay the higher local rate.
Tip ownership and pooling: tips belong to the worker providing the service to the customer — employers cannot take a share, nor deduct credit card transaction fees from tips. Tip pooling allowed under state law under certain circumstances (with proper notice and exclusion of management). State exempt salary threshold $871.16/week effective January 1, 2026 — Maine state-specific threshold higher than federal FLSA $684/week. Workers below state threshold owed overtime regardless of duties test. Multi-state operators with ME workforces using federal $684 threshold face Maine-specific exposure.
Read the full Maine $14.65 state min + portland/rockland $15.50 guide →
0212 weeks paid leave for medical, family, bonding, military, safe leave
Maine Paid Family and Medical Leave (PFML) benefits begin May 1, 2026. The program was authorized by Public Law 2023, Chapter 412 (signed by Governor Mills on July 11, 2023). Maine PFML is administered by Maine Department of Labor through Paid Family and Medical Leave Authority.
Contribution schedule (since Jan 1, 2025): 1% payroll tax. Employers with 15+ employees: cost shared between employer and worker (typically 50/50, but employer can elect to pay full cost). Employers with under 15 employees: worker pays 100% — employer not required to contribute. All employers (regardless of size) file quarterly wage reports and remit contributions.
Worker eligibility: workers must have earned 6× State Average Weekly Wage (SAWW) during base period. Base period: first four of last five calendar quarters before leave begins. Job protection: workers with 120+ consecutive days of employment have job protection (employer must restore worker to same or equivalent position).
Qualifying reasons: medical leave (own serious health condition); family care leave (care for spouse, domestic partner, child, parent, grandparent, grandchild, sibling, others); parental leave (bonding with new child via birth, adoption, or foster placement); military exigency leave; safe leave (domestic violence, sexual assault, stalking). Up to 12 weeks per benefit year (combined across categories).
Benefit calculation: based on average weekly wage during base period. Progressive replacement (higher percentage for lower-wage workers). Maximum benefit capped at SAWW. Concurrent run with federal FMLA when both apply. PTO supplementation: employer cannot force worker to use PTO during PFML, but workers may choose to supplement benefits with PTO to reach 100% of regular wages. Private plan substitution: employers may opt out of state PFML by providing approved private plan with equivalent or greater benefits. 12 insurance policies certified as of February 2025. Multi-state operators with ME workforces should configure: PFML quarterly wage reporting; contribution remittance through employer portal; private plan substitution coordination if approved; FMLA concurrent run; PTO supplementation policy; job protection for 120+ day workers; leave administration starting May 1, 2026.
Read the full Maine maine pfml benefits begin may 1, 2026 guide →
0326 MRS § 637 — broader than PSL frameworks; 80-hour total balance
Maine Earned Paid Leave (ERPA) under 26 MRS § 637 took effect January 1, 2021. Coverage: employers with more than 10 employees in usual and regular course of business for more than 120 days in any calendar year. Smaller employers (10 or fewer in regular course) and seasonal-only employers (under 120 days/year) are exempt.
Accrual rate and cap: 1 hour of paid leave per 40 hours worked. 40-hour annual cap. Lower accrual rate than most PSL frameworks (which use 1 hour per 30 worked, e.g., MN ESST, NM HWA, NE NHFWA). Workers accrue from first hour worked.
Use for ANY reason: ERPA is structurally distinctive among state paid leave frameworks. Workers may use earned paid leave for ANY reason. Distinguishes ME from PSL frameworks that restrict use to enumerated purposes (illness, family care, domestic violence, etc.).
September 24, 2025 carryover amendment: 26 MRS § 637(3) amended by 2025 legislation. Effective September 24, 2025, employers must allow unused leave to carry over into following year without reducing next year's accrual entitlement. Workers may have a maximum balance of up to 80 hours at any given time (40 hours carried over + 40 hours newly accrued). Annual usage remains capped at 40 hours.
Notice requirements: workers must give reasonable notice of intent to use leave when foreseeable. Employers may require notice of up to 4 weeks for foreseeable leave but must allow shorter notice for unforeseeable circumstances. Documentation: for absences of 3+ consecutive workdays, employers may require documentation supporting reason for leave (when reason is medical or related to qualifying purpose). Final pay: 26 MRS § 637 provides that accrued and unused Earned Paid Leave is included in final wages 'if established in company policy or in practice.' Multi-state operators with ME workforces should configure: accrual at 1 hour per 40 worked; 40-hour annual cap; 80-hour total balance allowance per Sept 2025 amendment; any-reason use policy; 4-week notice requirement for foreseeable leave; final pay ERPA inclusion if policy provides.
Read the full Maine maine earned paid leave (use for any reason) guide →
0426 MRS § 664 — federal mirror with mandatory OT cap and reporting time pay
Maine has state OT statute under 26 MRS § 664(3) mirroring federal FLSA: 1.5× regular rate for hours worked over 40 in a workweek. State OT statute provides parallel state enforcement track. Workers may pursue dual-track claims through Maine DOL or federal FLSA private action.
Federal regular rate calculation under 29 CFR Part 778 controls. All compensation components must be included: hourly wages, nondiscretionary bonuses, shift differentials, commissions, certain piecework. Failing to include nondiscretionary bonuses in regular rate is a common employer mistake.
80-hour 2-week mandatory OT cap (Maine-distinctive): Maine employers cannot require workers to work more than 80 hours of overtime in a 2-week period. Distinguishes ME from most states' unlimited mandatory OT frameworks. Limited exceptions: public emergency declared by Governor; workers performing duties essential to public (healthcare); seasonal workers; medical interns; employers shutting down for annual maintenance. The cap is industry-agnostic outside these exceptions.
State exempt salary threshold $871.16/week ($45,300.32/year) effective January 1, 2026 — Maine state-specific threshold higher than federal FLSA $684/week. Annual increase tied to state minimum wage. Workers below state threshold owed overtime regardless of duties test. Multi-state operators using federal $684 threshold face Maine-specific exposure for workers earning $684-871/week.
Reporting time pay (Maine-distinctive): if worker reports for scheduled shift and shift is canceled or shortened, employer must pay the lesser of: 2 hours at worker's regular rate; OR total amount worker was scheduled to earn. For tipped employees, this pay calculated using full minimum wage, NOT tipped wage. Limited exceptions: weather-related closures or emergencies; documented good-faith effort to notify worker before reporting. Compensatory time prohibited for private sector: Maine private-sector employers cannot offer compensatory time off in lieu of overtime pay. Public sector employers may offer comp time per federal FLSA § 7(o).
Read the full Maine me ot + 80-hour 2-week cap (mandatory ot limit) guide →
0526 MRS § 625-B — 1 week per year worked, expanded 2023
Maine's severance pay framework under 26 MRS § 625-B requires employers closing or relocating a facility employing 100+ workers in the preceding 12 months to pay severance. The statute was originally adopted in 1979 and significantly expanded in 2023.
Severance calculation: 1 week's pay for each year worked at the facility, with partial pay for partial years. Calculation based on worker's regular wage at time of separation. Workers must have 3+ years of tenure at the facility to qualify. Workers with less than 3 years' tenure not entitled to severance under § 625-B.
2023 expansion (Public Law 2023, Chapter 360): originally adopted in 1979, Maine's statute covered only industrial or commercial facilities. The 2023 amendment expanded this provision to workplaces outside industrial and commercial sectors. The expansion increases access to severance pay for Maine workers in service, healthcare, retail, hospitality, and other sectors.
Coverage triggers: facility closure (permanent shutdown of operations at 100+ employee facility); facility relocation (move outside state or significant geographic distance); significant workforce reduction (threshold reductions that effectively shut down operations). Coordination with federal WARN Act: federal WARN Act (29 USC § 2101) requires 60-day advance notice for plant closings or mass layoffs at 100+ employee facilities. Maine § 625-B adds severance payment obligation on top of federal notice requirements. Among more demanding state mini-WARN frameworks (NJ has 90-day severance, IL has 60-day notice, NY has 90-day notice).
Severance payment: severance must be included in or paid alongside final paycheck. Treated as wages and subject to ordinary payroll tax withholdings. Multi-state operators planning facility closures or relocations in Maine should configure: WARN Act 60-day advance notice federal compliance; ME § 625-B severance calculation by tenure; 100+ employee facility threshold determination; 3+ year tenure eligibility verification; final paycheck severance inclusion; review of expanded coverage under 2023 amendment for non-industrial/commercial sectors. Final pay timing: wages must be paid in full on next regular payday OR within 2 weeks, whichever is EARLIER (Maine-distinctive 'whichever earlier' framework, similar to NE).
Read the full Maine severance pay for 100+ employee facility shutdowns guide →
065 MRS § 4551 — anti-discrimination at 1+ employee + 2019 pay history ban
Maine Human Rights Act (MHRA) under 5 MRS §§ 4551 et seq. prohibits employment discrimination at the 1+ employee threshold — among the lowest in the country alongside OK (OADA at 1+). Every Maine employer faces state anti-discrimination obligations from day one.
Protected categories under MHRA: race, color, religion, sex (including pregnancy and childbirth), sexual orientation, gender identity, ancestry, national origin, age (40+), physical or mental disability, genetic information, whistleblower activity. Category list broader than federal Title VII, ADEA, ADA, GINA, PWFA combined — and covers all employers with 1+ employee.
Pay history inquiry ban (effective September 17, 2019): Maine employers cannot inquire about compensation history until after making an offer with all compensation terms. The ban addresses pay disparities that originate in earlier compensation. Anti-retaliation provisions integrated: workers cannot be discharged or retaliated against for refusing to disclose wage history, disclosing own wages, or inquiring about/disclosing other workers' wages for purposes of enforcing equal pay rights.
Maine Equal Pay Act expansion (Public Law 2023, Chapter 511, effective January 1, 2025): prohibited wage discrimination based on race. Previously only sex-based discrimination was prohibited. The amendment broadens equal pay protections beyond gender to include racial pay equity. Multi-state operators should configure equal pay analysis covering both sex and race protected categories.
Non-poaching agreements prohibited: Maine prohibits non-poaching agreements between employers (no-hire or anti-poaching agreements). Distinguishes ME from many states with no explicit prohibition. Trade secret protection and reasonable non-compete agreements with worker compensation thresholds (currently exceeding 4× federal poverty level) remain enforceable. Enforcement: Maine Human Rights Commission enforces MHRA. Workers may file with MHRC within 300 days of alleged discriminatory act. Workers may pursue parallel federal claims under Title VII, ADA, ADEA, GINA, PWFA where applicable. Multi-state operators expanding to ME should configure: MHRA compliance from 1 employee; explicit SO/GI protection; pay history inquiry ban training; 2025 race-based wage discrimination prohibition; non-poaching agreement prohibition; parallel state-federal claim coordination.
Read the full Maine maine human rights act + pay history inquiry ban guide →
0726 MRS — next payday or 2 weeks earlier; 30-min break after 6 hours
Maine's wage payment framework under 26 MRS includes structured pay frequency and final pay rules. Pay frequency: employers must establish regular paydays at intervals of up to 16 days. Each payment must cover all wages earned up to 8 days before the payment date. Salaried employees and family members employed by the employer are exempt from pay frequency requirement. Employer must give 30-day written notice if extending the pay interval.
Final pay 'whichever earlier': wages must be paid in full on the next regular payday OR within 2 weeks of leaving job, whichever is EARLIER. The framework applies regardless of separation cause (terminated, quit, resigned due to labor dispute). Includes accrued Earned Paid Leave if established in company policy or in practice. Sale of business: if employer is selling business, must pay workers final wages no more than 2 weeks after sale of business.
Maine's 'whichever earlier' framework benefits workers: parallel to NE Wage Payment and Collection Act 'whichever sooner' framework. Most states use 'whichever later' giving employers more time. ME's framework benefits workers when termination is mid-cycle.
Meal/rest break: workers working 6+ consecutive hours must receive a 30-minute paid or unpaid rest break, IF there are at least 3 employees on duty at the same time. Limited applicability — small workforces don't trigger break requirement. Employers can negotiate more or fewer breaks in writing.
Pay statement disclosure: employers must give workers a pay statement every pay period detailing: pay period dates; total hours worked; total wages earned; any itemized deductions. When worker is paid by direct deposit, employer must also provide a record of the transfer. Pay statements can be electronic if employer provides workers with way to access and print them. Direct deposit allowed without transfer/transaction fees. Unfair agreements prohibited: employers cannot require that worker pay for losses such as broken merchandise, bad checks, or bills not paid by customers, nor for special uniforms and certain tools of the trade. Mini-COBRA: federal COBRA only applies to 20+ employee employers. Maine mini-COBRA allows continuation of health insurance for up to 36 months at 102% of original cost. Multi-state operators with ME workforces should configure: 16-day max pay frequency; 'whichever earlier' final pay automation; meal break enforcement at 6 hours with 3+ on duty; comprehensive wage statement disclosure; mini-COBRA workflow for sub-20-employee operations.
Read the full Maine me final pay + 16-day pay frequency + meal/rest breaks guide →
08Multi-factor common law test; federal OSHA; work permits required
Maine applies a multi-factor common law test for IC classification, structurally similar to the IRS framework under Rev. Rul. 87-41. Factors evaluated: behavioral control (instructions on how work is performed); financial control (method of payment, tools/equipment, opportunity for profit/loss); relationship type (written contracts, employee benefits, permanence of relationship, regular business of employer).
The multi-factor test is more permissive than ABC test states (NJ, MA, CA, MD, CT, NV) but more rigorous than some federal-default states. Workers can be classified as IC in Maine even when work is part of employer's regular business — provided control is properly limited and other factors support IC classification.
Misclassification consequences: unemployment insurance back-contributions plus penalties (Maine Department of Labor); workers' compensation premium back-payment plus exposure for any injuries during misclassified period (Maine Workers' Compensation Board); federal IRS Form SS-8 reclassification with Section 3509 employment tax penalties; potential wage exposure under Maine 26 MRS § 664 and federal FLSA.
OSHA framework: federal OSHA covers private-sector workplaces in Maine. Maine Department of Labor / Bureau of Labor Standards covers public-sector workplaces (state, county, municipal agencies). Distinguishes ME from full state-OSHA-plan states. Federal OSHA enforcement priorities in Maine: construction; manufacturing; healthcare; agriculture (forest, fishing, blueberry harvesting).
Child labor work permits required: Maine requires work permits for workers under 16. Distinguishes ME from KS, IA, AR, OK which don't require work permits. Aligns ME with MA, NY, NJ, CT permit requirements. Hour restrictions per federal FLSA standards plus state-specific provisions (no work during school hours; restricted hours and total weekly hour limits). Workers under 18 prohibited from hazardous occupations identified by U.S. DOL. Industry-specific: hospitality (Portland, Bar Harbor, ski resorts); healthcare; manufacturing; fishing/lobstering; agriculture (potato, blueberry). Each industry creates specific compliance focus. Multi-state operators expanding to ME should configure: IC classification review; federal OSHA reporting workflow for private sector; work permit workflow for under-16 hires; hazardous occupation review for under-18 workers; industry-specific compliance based on Maine workforce focus.
Read the full Maine ic + osha framework + child labor permits guide →