Maine’s Minimum Wage Increased Again on January 1, 2021

As a result of the referendum ballot question passed in 2016, Maine’s minimum wage has once again increased in 2021. Effective January 1, the minimum wage in Maine rose to $12.15 per hour.

Starting this year, the resulting increase is associated with the “indexing” portion of Maine’s wage and hour law that requires the state’s minimum wage to be adjusted annually by any increase in the Urban Consumer Price Index (CPI), rounded to the nearest multiple of five cents. 1

It is important to note that Maine’s minimum wage is directly tied to the state’s “overtime” standard – that yearly total wage amount that determines, in part, an hourly/salaried employee who would therefore be eligible for overtime pay (time and one-half) for hours worked beyond 40 hours in a week, and those considered “salaried” employees who would be considered exempt for overtime purposes. The previous salary threshold standard was $36,000 a year. As a result of this year’s adjustment, the current salary threshold is $36,450. 2

We hope you find this information helpful.  If you have questions, please contact me by emailing pgore@mainechamber.org.

Best Regards,
Peter Gore
Executive Vice President, Maine State Chamber of Commerce

Statute References:
1    MRSA Title 26, Chapter 7, Employment Practices, Subchapter 3, Minimum wages, Section 664, Subsection 1
2    MRSA Title 26, Chapter 7, Employment Practices, Subchapter 3, Minimum wages, Section 663, Subsection 1