Maine’s minimum wage is set to increase from $14.65 to $15.10 per hour on Jan. 1, 2026, the Maine Department of Labor (MDOL) announced. The change is the state’s annual cost-of-living adjustment required under Title 26, chapter 7, §664, which ties the wage floor to the CPI-W for the Northeast Region. From Aug. 2024 to Aug. 2025, that index rose 3.1%.
MDOL estimates that in 2024 roughly 35,000 Maine workers earned under $15/hour—about 5% of all wage and salary workers and 9% of those paid hourly. The 2026 increase also follows a landmark change enacted in June extending the state minimum wage to agricultural workers.
Service (Tipped) Employees
- The cash wage (tip wage) will be $7.55/hour in 2026.
- Employers must ensure each service employee’s direct wage + tips averages at least $15.10/hour for the week.
- The monthly tip threshold to qualify as a service employee rises from $185 to $191.
Overtime Exemption Salary Threshold
Beginning Jan. 1, 2026, the minimum salary threshold for most “white-collar” overtime exemptions will be $871.16/week (about $45,300.32/year) or the federal level—whichever is higher. MDOL emphasized salary is only onefactor; an employee’s job duties still determine exemption status.
What this means
- A full-time worker at the new minimum (40 hrs/wk) would earn about $604/week or ~$31,408/year.
- Restaurants and hospitality employers should review tip credit practices and weekly reconciliation.
- All employers should verify classifications, update payroll systems, refresh required workplace postings, and plan for vendor/contract rate adjustments that reference the state minimum wage.
For questions on exemptions, overtime, or tip credit compliance, employers and workers should review Maine statute Title 26 §664 and MDOL guidance. This article is informational and not legal advice.