- Minimum Wage
- Minimum Wage Calculator
- Tip Minimum Wage
- Tip Pooling and Sharing
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- Maine Minimum Wage Laws 2022 FAQs
- According to the state’s minimum wage laws, is there a special arrangement among service employees in Maine?
- Which particular jobs are created and recognized by law, especially when it comes to the employment of younger people?
- What do Maine minimum wage laws say about tipped employees’ valid tip pooling arrangement?
- Is Maine’s minimum wage going to increase in 2022?
- Other State’s Minimum Wage Information
Maine’s current minimum wage is $12.75.
Beginning on January 1, 2021, the minimum wage will increase each year consistent with the percentage increase for the prior year in the Consumer Price Index for Urban Wage Earners and Clerical Workers, CPI-W, for the Northeast Region, or its successor index.
As published by the United States Department of Labor, Bureau of Labor Statistics, or its successor agency, the amount of the minimum wage increase is rounded off to the nearest multiple of $0.05. ME Statute 664(1)
If the federal minimum wage set forth in the Fair Labor Standards Act increases to be greater than Maine’s minimum wage, the state’s minimum wage will increase to match the federal wage.
Any increases to Maine’s minimum wage triggered by changes in the federal minimum wage shall go into effect on the same day. However, it shall not exceed $1 above the state’s current rate. ME Statute 664
Minimum Wage Calculator
Tip Minimum Wage
Maine’s minimum wage for tipped employees is $6.38.
Employers must notify their employees that they will be paid the tipped wage rate before the employee begins working in the tipped position.
They must also ensure that employees being paid the tipped minimum wage are paid the standard minimum wage when tipped wages earned are combined with tips received.
The difference between the tipped minimum wage and the standard minimum wage that may be credited to earned tips is called a tip credit.
If the tip credit is not enough to ensure tipped employees are paid the standard minimum wage, the employer must pay employees wages sufficient to cover the shortage.
Tips given to a tipped employee are considered the property of the employee who received them and may not be shared with his or her employer.
Amounts that belong to the tipped employee include tips that are automatically charged to a customer or charged on a customer’s credit card.
Employers must pay employees tips paid by credit card by the customers by the next regular payday.
Additionally, employers may not withhold paying employees the tips received while the employer awaits payment from a credit card company.
In a banquet or private club setting, an employer may retain service charges paid by customers if the employer informs the customer beforehand.In this situation, the service charge does not constitute a tip for tip credit purposes. However, the employer may use all or part of service charges received to meet its obligation to pay employees the minimum standard wage. ME Statute 26-664(2-B)
Tip Pooling and Sharing
Maine minimum wage laws allow employers to establish a valid tip pool or tip sharing arrangement among employees so long as it is consistent with the federal Fair Labor Standards Act and it regulations regarding tip/gratuity pooling. ME Statute 26-664(2-A)
Employees with disabilities
Maine’s minimum wage law prohibits employers from paying employees with disabilities less than the state’s minimum wage. ME Statute 26-666
Maine’s minimum wage law does not allow employers to pay trainees a subminimum wage rate lower than the standard minimum wage.
Maine’s minimum wage law does not allow employers to pay apprentices a subminimum wage rate lower than the standard minimum wage.
Maine’s minimum wage law does not allow employers to pay learners a subminimum wage rate lower than the standard minimum wage.
Maine’s minimum wage law does not allow employers to pay student learners a subminimum wage rate lower than the standard minimum wage.
Maine’s minimum wage law does not allow employers to pay student workers a subminimum wage rate lower than the standard minimum wage.
Maine Minimum Wage Laws 2022 FAQs
According to the state’s minimum wage laws, is there a special arrangement among service employees in Maine?
Yes. First and foremost, note that, by definition, a service employee is any employee engaged in an occupation where they receive the following tips:
- $30 monthly prior to January 1, 2022
- $100 monthly beginning January 1, 2022
- $175 monthly beginning January 1, 2023
Every January 1st thereafter, yearly adjustments must be made. As such, a service employee wage must increase by the same percentage.
Employers are also required to pay at least half of the state minimum wage as part of the service employees’ direct service wages.
Effective January this year, the state service employee minimum wage rate is at $12.75 per hour.
This means that in terms of salary threshold limits, the direct service wages must not go below an hourly rate of $6.38.
This also means that a worker from overtime pay is given the required wage vis-a-vis all hours worked一more than 40 hours in a workweek.
Overtime is computed by multiplying the regular pay rate by one and one-half times.
Which particular jobs are created and recognized by law, especially when it comes to the employment of younger people?
According to the proceedings of the 128th Maine Legislature, the following occupations are duly recognized:
- Automobile mechanic. This pertains to any employee who services trucks or automobiles, as long as the employee’s annual pay meets or exceeds the yearly rate stipulated by the US Department of Labor.
The same rule applies to an automobile service writer and an automobile parts clerk.
What do Maine minimum wage laws say about tipped employees’ valid tip pooling arrangement?
While rules for tipped employees are discussed in detail above, note that part of the tip basics is the employee being a member of a valid tip pool.
What this means is that there are instances when they are required to pay a portion of their tips and share it with fellow employees.
Is Maine’s minimum wage going to increase in 2022?
Yes, and it’s already happening. Thanks to the current minimum wage ordinance, Maine will undergo annual adjustments to the hourly minimum wage of its employees.
The rate of increase will partly be based on the cost of living index in the hopes of reaching a livable minimum wage.