Maine workers will enjoy their minimum wage increase to $14.65 per hour starting January 1, 2025, up from the current rate of $14.15. The increase reflects a 3.6 percent rise in the Northeast Region's cost-of-living index between August 2023 and August 2024.
The wage adjustment stems from a 2016 citizen referendum that amended state law to require annual minimum wage increases based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) in the Northeast Region.
For tipped workers, such as restaurant servers, the minimum direct cash wage will increase to $7.33 per hour. Employers must ensure these workers receive at least the full minimum wage of $14.65 per hour when combining direct wages and tips over a week's period. To qualify as a service employee, workers must earn at least $185 in monthly tips, up from $179.
The law also affects overtime exemption thresholds. Starting in 2025, to be exempt from overtime pay, salaried workers must earn at least $1,128 weekly or $58,656 annually, as determined by the U.S. Department of Labor rate. However, officials note that salary is just one factor in determining overtime exemption – job duties must also be considered, and workers earning above the threshold may still qualify for overtime pay.
This increase comes as part of Maine's ongoing efforts to ensure wages keep pace with the cost of living for workers across the state.