State Policy Update: 2022 Minimum Wage Increase

Per State Law, Maine’s Minimum Wage to Increase to $12.75 Per Hour in 2022

The Maine Department of Labor issued the following press release today regarding the upcoming increase in Maine's minimum wage. Maine employers are now facing a substantial increase of 60 cents over this year.

Pursuant to Maine law (Maine statute 26 MRS §664), effective January 1, 2022, the state minimum wage will increase from $12.15 to $12.75 per hour, based on data recently made available by the U.S. Department of Labor’s Bureau of Labor Statistics. Maine law requires annual adjustments to the minimum wage based on the cost of living index (CPI-W) for the Northeast Region.
 
In addition to the minimum wage, the new “tip wage,” or service employee minimum wage, in 2022 will be $6.38 per hour. This means that service employees must receive at least a direct cash wage of $6.38 per hour from the employer. The employer must be able to show that the employee receives at least the minimum wage of $12.75 per hour when the direct wage and tips are combined at the end of the week. More information on the service employee minimum wage can be found here, Minimum Wage and Overtime.
 
The minimum salary threshold for exempting a worker from overtime pay is also based on the minimum wage. Starting January 1, 2022, the new minimum salary threshold is $735.59 per week, or $38,251 per year. This is only one of the factors used in determining whether a worker is exempt from overtime pay under federal or state law. An individual can earn more than the minimum salary threshold and still be eligible for overtime. The duties of each worker must be considered as part of this analysis. The law can be found here.  More information can be found here: https://www.maine.gov/labor/labor_laws/wagehour.html
 
The Department’s Bureau of Labor Standards is responsible for enforcing the state’s minimum wage and overtime statutes and ensuring that both workers and employers understand and comply with the law.
 
If you’re a worker who feels that your rights have been violated, or an employer who has questions or would like to know more about the Department’s free trainings, please call 207-623-7900, email mdol@maine.gov, or visit https://www.maine.gov/labor/bls/index.shtml.