Home News & Events Upcoming Labor Law Changes in 2023. Just last month, Portland voters overwhelmingly rejected an effort to raise the city's minimum wage to $18 by 2025 and eliminate the tip credit wage. Processing your own payroll is easier than you think. This blog provides practical information on the subject matter. In 2007 the minimum wage in Maine was extended via LD 224 to domestic workers employed by for-profit, third-party employers. The information below applies to January 1, 2023 (and December 31, 2022) increases only. Florida: The minimum wage will increase from its current $11 to $12 on Sept. 30, 2023. The nationwide push for minimum . The debate over whether to raise Maine's minimum wage by 60 percent (and raise its tipped minimum wage by over 200 percent) is a study in contrasts. It has also changed in regards to service employees and how tips are treated. In Seattle, the minimum wage is even higher. Beginning January 1, 2023, all unused paid vacation time that had accrued must be paid to the employee on their next regularly scheduled pay day after employment ends. The table below lists the current prevailing 2023 minimum wage rates for every state in the United States. For example, Minnesota employers are required to furnish each employee with a written notice of any change in pay before the change takes effect. In 2007 the issue of a livable wage was returned to. This was in accordance with the raises set by the federal government over the same period. While these are helpful guidelines to follow, make sure your business is prepared and stays in compliance by discussing Maine minimum wage laws with your accountant and lawyer. State and federal posters are available for downloading in the State & Federal Resources section of HR411. The full list of increases Copyright 2023 NPR. 0000035846 00000 n The consent submitted will only be used for data processing originating from this website. The new "tip wage" or service employee minimum wage is now $6.90 per hour (almost a $0.50 increase from last year). Several cities and counties are also increasing their minimum wage effective January 1, 2023. Below is a summary of these changes and guidelines to help you comply with your minimum wage requirements. If you surpass 40 hours in a working week then you will be subject to overtime pay for those hours, which is 1.5 times the minimum wage rate, equalling $20.70 per hour. Ensure that you understand the minimum wage rules that apply to your employees and, if applicable, make any necessary changes in RUN Powered by ADP before January 1, 2023 (December 31, 2022 in New York). The state of Maine then raised its minimum wage every year from 2003-2006, it raised it to $5.75/hour-$6.75/hour. Firstly, from 1965-1981 the minimum wage was raised every year- and twice in 1975- except for 1970; over this time it went from $1.15/hour to $3.35/hour. The Act would raise the current minimum wage of $13 per hour to $15 per hour on January 1, 2023. Maine's minimum wage will increase from $12.75 to $13.80 based on a state law that requires annual adjustments based on a cost of living index. The bill stated the duties of the commission to: Define what level of compensation constitutes a livable wage; identify ways to ensure that all Maine adults earn a liveable wage; Examine the efficacy of a state earned income tax credit that would enable working families to meet their basic needs; examine how increased access to education and training and access to child care increases the likelihood of earning a liveable wage and identify means of increasing such access; identify the number of people in Maine who earn less than a liveable wage; and examine how state policies and payments, including MaineCare and other state health care related payments, contribute to the number of Mainers who earn less than a liveable wage. We are an online publication that creates actionable advice, guidance, statistics, and helpful resources on doing business and living in the United States. 0000003234 00000 n For tipped employees, employers can take a tip credit of up to $6.90 and must pay tipped employees a cash wage of $6.90 per hour. endobj The top five highest 2023 statewide minimum wages were set to be as follows: $16.10 in Washington, D.C.; $15.74 in Washington; $15.50 in California, $15.00 in Massachusetts and Connecticut. January 1, 2023: New standard mileage rates go into effect., Congress passed the Consolidated Appropriations Act of 2023 on December 23rd, an omnibus bill that includes the SECURE 2.0 legislation, referred to as such because, New HIPAA Guidance on Use of Online Tracking Technologies, On December 2, 2022, the Department of Health and Human Services (HHS) issued a bulletin providing guidance on how the HIPAA Privacy, Security and Breach. The consumer price index adjust calls for an increase in minimum wage of 8.2% over the current rate of $12.75 per hour. <> 21-22 Year Old Rate. This law does not apply to employers with less than 11 employees or a public employer. 0000019839 00000 n Nothing in this article constitutes legal advice. Title 26, chapter 7, section 626, Cessation of Employment, was amended by P.L. What is the minimum wage for tipped employees in Maine? We provide a comprehensive insurance portfolio that protects you and your family today and beyond. The latter states all enjoy far greater population density, industry, economic opportunity, and commercial flow. According to Maine.gov, "tip wage" also increased for 2023. This bill increases the minimum wage of the employees of employers employing 50 or more full-time employees to $13.00 on January 1, 2021, to $14.00 on January 1, 2022 and to $15.00 on January 1, 2023. Maine's hourly minimum wage will rise to $13.80, and the minimum wage for service employees will increase to $6.90 effective Jan. 1, 2023, a state labor department official said Nov. 9. 'Evjc! Lower your true cost of risk and find the business insurance coverage your business needs. Author: newscentermaine.com Published: 6:20 PM EST December 30, 2022 States with scheduled minimum wage increases on December 31, 2022, or January 1, 2023. A progressive advocacy group estimates that 147,000 Mainers will see their wages increase next year when the state minimum wage jumps from $12.75 an hour to $13.80. Furthermore, although the states minimum wage is higher than the Federal minimum wage, Maines minimum wage rate is slightly behind most of the rest of New England- Vermont has a minimum wage of $8.73/hour; Massachusetts has a minimum wage of $8.00/hour; Connecticut has a minimum wage of $8.70/hour; and Rhode Island has a minimum wage rate of $8.00/hour. This is greater than the Federal Minimum Wage of $7.25. The state retains jurisdiction over most other wage and hour regulations to include leave, breaks, overtime, severance pay, vacation pay, prevailing wages and youth employment. The number of . Again, however, the defendant appealed and won because the case was dismissed on want of jurisdiction.[1]. When the minimum wage increases, some employers provide a raise to employees already earning equal to or more than the new rate. Which States Have an Upcoming Increase to $15 Minimum Wage? As a small business owner in the Pine Tree State, we know you want to stay on top of recent increases to Maines minimum wage, and thats why we put together this quick guide as a starting point. [2] It is also important to note the clear and obvious distinctions between states such as Maine and states such as Massachusetts, Rhode Island, and Connecticut. Understand your risks and liability, and work with us to build a right-sized insurance coverage policy that protects your business. Despite the decisions not to tie the minimum wage to the Consumer Price Index (CPI) or inflation, in 2005 the 122nd legislature passed LD 1236 which established a study commission to report to the legislature in regards to a livable wage. AUGUSTA - 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 Labors Bureau of Labor Statistics. Simultaneously, Portland's minimum hourly wage will increase from the current state-mandated wage of $12.15 to $13 (increasing annually thereafter until it reaches $15.00 in 2024). The highest minimum wage in the country, however, would be found in Washington, D.C at 16.10 dollars, if it were a state. 2023 Minimum Wage Rates By State Get a Federal all-in-one labor law poster State Minimum Wage Statute: Title 26 Labor and Industry 664. However, there are still many states that use the federal minimum wage of $7.25 per hour as a guide on what workers should be paid as a basic minimum wage, fortunately for those working in Maine, this is not the case. 2023 Minimum Wage Rates by State Compliance, Employee Benefits Several states have adopted minimum wage rates higher than the federal rate of $7.25 per hour. Click on the state to reveal the new minimum wage. See below for a full list of minimum wages across the country. Note that an employee's tips plus cash wage should equal at least $12.15. To assist employers and employees, the Maine Department of Labor published interpretive guidance addressing the interaction of the laws for vacation payout upon cessation of employment and earned paid leave. Minimum wage increases are usually based on inflation, a rise in the cost of living, and due to everything that transpired over the prior year, it comes as no surprise that Maine, like some other states, has seen a modest, but much-needed increase to the minimum wage. We suggest that employers refer to the U.S. Department of Labor website, which includes an Overtime Advisor calculating tool: http://webapps.dol.gov/elaws/whd/flsa/otcalc/i2p2.asp. In 2011, LD 207 defined "tip" and clarified that a sum presented by a customer in recognition of service performed was to be considered a tip for the service employee even if it is automatically included in the customer's bill or charged to a credit card. 0000039990 00000 n The Departments Bureau of Labor Standards is responsible for enforcing the states minimum wage and overtime statutes and ensuring that both workers and employers understand and comply with the law. Light snow and icy mix move inland tonight and continue through tomorrow Instituting a private right of action clause to address the enforcement of a municipal ordinance means that a worker who believes that he or she has been underpaid could take their own court action, but more commonly would seek legal counsel and sue the employer for the lost wages. Per State Law, Maine's Minimum Wage to Increase to $12.75 Per Hour in 2022. Typically, such lawsuits allow, when the decision is for the employee, the inclusion of back wages, attorney fees, court costs, and equal amounts of liquidated damages. These stretches included: 1960-1964, 1992-1995, 1998-2001, and 2009-2014 (the present). Maine labor law allows tipped employees to be paid a lower cash wage than the standard Maine minimum wage by their employers, as up to $5.50 in tips earned per hour can be deducted from their wage as a "Tip Credit". This means that service employees must receive at least a direct cash wage of $6.90 per hour from the employer. However, workers for the same company who work outside that town/city would be subject to the state minimum wage for the performance of the same work. It also stated that a service charge included in a bill in a banquet or private club setting is not a tip and that the customer must be notified of this, that all employees in the banquet or private club setting must be compensated in accordance with the State's minimum wage and overtime laws and that the service charge can be used to meet these obligations. Dealing with Enrollment Mistakes & Changes, 2023 Optional Standard Mileage Rates Announced by IRS, Important Dates December 29, 2022: IRS announced the standard mileage rates for use in 2023. While there's no obligation to provide a raise in such cases, some employees may be expecting one. Maine State Minimum Wage 2023 Minimum Wage. Square can help you get your EIN, as well as help navigate other business challenges with COVID-19 small business resources and more. Grow with who you know. This act would increase the minimum wage rate by $1.00 every year beginning in 2024, until the minimum wage rate reaches $15.00 per hour. Note that an employees tips plus cash wage should equal at least $12.15. Jan. 2The new year brings a gift to low-wage workers in Maine. . Click any state for details about the minimum wage, exemptions, and other state labor laws. seq., this is a determination by the Bureau of Labor Standards, of the fair minimum wage rate to be paid to laborers and workers employed on the below titled project. Recognized as a prolific business plan writer by many prominent immigration attorneys in the U.S., Jason has written over 1,200 business plans over the past 16+ years for start-ups looking to establish and expand their footprint in the United States. Meanwhile, some major companies have recently upped their entry-level pay. Get a 2023 Maine all-in-one labor law poster Instead of printing out pages of mandatory Maine and Federal labor law posters, you can purchase a professional, laminated all-in-one labor law poster that guarantees compliance with all Maine and federal posting requirements. Municipal Minimum Wage Ordinances Employers with employees who work in Bangor and/or Portland or any other municipality that passes a local minimum wage ordinance, ma y be subject to additional regulations and should check with municipal . This means that the new minimum wage in Maine starting on January 1st, 2023 will be $13.80 per hour. Center for Workforce Research and Information. Achieve a higher level of performance to protect your assets, health, and financial well-being. The calculations were based on statutory requirements and federal Bureau of Labor Statistics data issued Sept. 13. Earned Paid Leave - An employer that employs more than 10 employees in the usual and regular course of business for more than 120 days in any calendar year shall permit each employee to earn paid leave based on the employee's base pay. The Department also has more information available on its website at https://www.maine.gov/labor/labor_laws/wagehour.html. The student minimum wage in Maine is $11.73 per hour (85% of the regular minimum wage). Time of Payment - Employees must be paid in full at least every 16 days. $13.50 by January 1, 2023 $14.25 by January 1, 2024 $15.00 by January 1, 2025 Thereafter, the minimum wage may increase each January, to the nearest $0.05, depending on the rate of inflation, and will be announced no later than November 1 of the previous year. Most jurisdictions require employers to post an up-to-date minimum wage notice in the workplace. 0000039135 00000 n In such cases, you must pay tipped employees the full minimum in direct cash wages. In 1991 the Federal Minimum Wage rate was raised to the $4.25/hour mark that the state complied with. This interactive map covers January 1, 2023 minimum wage increases for all applicable states. 0000043589 00000 n ME Department of Labor 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. John Carney on July 19, 2021, set the minimum wage increase in motion. 0000035212 00000 n For some, a pay hike has softened the blow. This blog does not provide legal, financial, accounting, or tax advice. Follow us on social media or sign up for email alerts. This law change raised several interpretive questions about how the amended law interacts with Maine's existing earned paid leave law. Bangor woman killed in murder-suicide remembered as a caring friend. 0000054874 00000 n There are a few significant trends to note. 0000034298 00000 n If the combination of direct cash wages and tips falls below Arizona's minimum wage ($13.85 per hour), employers must make up the difference. Maine's minimum wage increased to $13.80, up from the previous . Sy5)>>7wwXY=T}Mf] 22*"u8i_)LplN+nnXg) $k(4Yxal~\x@] KVNo`i8gWk [|vTv0&d]5ttPeCS9_Ze9-Nyue`U~{XQu! Pursuant to Maine law (Maine statute Title 26, chapter 7, section 664), effective January 1, 2023, the state minimum wage will increase from $12.75 to $13.80 per hour, based on data recently made available by the U.S. Department of Labor's Bureau of Labor Statistics. Maine's Minimum Wage to Increase to $13.80 Per Hour in 2023. According to the legislation, on January 1, 2021, and each January 1 thereafter, the minimum hourly wage must be increased according to the increase in the cost of living. The duties of each worker must be considered as part of this analysis. Consider the potential impact on labor costs, employee morale, internal equity (how employees are paid when compared with other employees within your company based on skills and experience), and your typical merit increase schedule. In 2023, the minimum wage increased to $13.80 per hour, which was a $1.05 wage increase from 2022. 0000025499 00000 n Effective January 1, 2023, the minimum wage in Maine is $13.80 per hour. Maine Minimum Wage Law Update Minimum wage increases to $13.80 per hour Direct wage to service employees increases to $6.90 per hour Service employees regularly receive more than $175 a month in tips New minimum salary requirement for exempt status will be $796.17 New wage rates effective January 1, 2023 Wage and Hour Exemptions The minimum cash wage for service employees will rise to $6.90 from $6.38. endobj But from 1985-1990, the state of Maines minimum wage was higher than the Federal. Manage Settings Some local jurisdictions adjust their minimum wages annually for inflation, but they haven't announced their 2023 rates yet. 0000004599 00000 n Louisiana: $7.25, no minimum wage required; Maine: Increases . Here's how the 2023 minimum wage increases breakdown by state: Alaska: Minimum wage set to rise to $10.85 by Jan. 1; Arizona: . This will also include all accrued Earned Paid Leave if established in company policy or in practice. However, in some cases, employers in certain industries or employment situations may be able to pay their employees a lower minimum wage which is offset by tips. Maine's minimum wage has increased by more than 80% - from $7.50 to $13.80 an hour - since voters approved a referendum in 2016. Now what? Employees must be notified of any decrease in wages or salary at least one day prior to the change. The Department of Labor is an equal opportunity provider. Maine Tipped Minimum Wage Laws for 2022, 2023 Maine's normal state minimum wage rate is $13.80 per hour. 10 Reasons Why California is Called the Golden State. Starting January 1, 2022, the new minimum salary threshold is $735.59 per week, or $38,251 per year. The following states have announced new minimum wage rates for 2023: Minimum Wage Rate Some states increase their minimum wage rates on a different schedule. 0000000016 00000 n Meanwhile, another law requires companies with . In Massachusetts, the minimum wage increased from $13.50 to $14.25 on January 1. The state's minimum wage will increase to $11.75, beginning Jan. 1, which is a $1.25 increase from the current minimum wage of $10.50. Maine's minimum wage will increase from $12.75 to $13.80 based on a state law that requires annual adjustments based on a cost-of-living index. As a result, a number of regional center vendors may be eligible for a rate adjustment in order to pay employees the new minimum wage. Such steps were established and a minimum rate of 33 cents per hour was set. Historic photos recall how cold Maine winters used to be. The minimum wage for tipped employees starting January 1, 2023 is now $6.90, up from $6.38. stream Maine news, sports, politics, election results, and obituaries. Maine, New York and Washington, the minimum salary required to be classified as exempt from overtime is tied to the minimum wage and therefore will also increase on January 1 . to Portland, Maine. 5 min read. Maine . v~s}|t}DNji/9fOUnU;=o&oa&! SB 407 - Under current law, the minimum wage rate is set to increase by $. http://legislature.maine.gov/statutes/26/title26sec664.html, http://legislature.maine.gov/legis/statutes/26/title26sec664.html, https://www.maine.gov/labor/labor_laws/wagehour.html. For example, if your state minimum wage is $14 and the local minimum wage is $15, you must generally pay the employee at least $15 per hour, since it's higher than the state and federal minimum wage rates. Augusta, Maine 04333-0045 Telephone (207) 623-7906 Wage Determination - In accordance with 26 MRS 1301 et. <>/Metadata 387 0 R/ViewerPreferences 388 0 R>> The new tip wage for service employees is half, now at $6.90 per hour for those who receive tips. The tipped . California will have the highest minimum wage in 2023, at 15.50 dollars. Note: Some requirements may only apply to businesses of a certain size, or employees who perform a certain number of work hours in that jurisdiction. The Department of Labor is an equal opportunity provider. If youre a worker who feels that your rights have been violated, or an employer who has questions or would like to know more about the Departments free trainings, please call 207-623-7900, email mdol@maine.gov, or visit https://www.maine.gov/labor/bls/index.shtml. Maine law . 2022 c. 561, to address the circumstances in which vacation must be paid out upon cessation of employment. Click on the state to reveal the new minimum wage. https://www.maine.gov/labor/labor_laws/wagehour.html. % $13.50 by January 1, 2023 $14.25 by January 1, 2024 $15.00 by January 1, 2025 Thereafter, the minimum wage may increase each January, to the nearest $0.05, depending on the rate of inflation, and will be announced no later than November 1 of the previous year. We apply insight and experience to drive more value and deliver better outcomes from your benefit programs. <>/ExtGState<>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 1008] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> 0000002924 00000 n The amendment further clarified that tip pooling is a valid practice as described by federal laws and regulations. The law pertained to women and minors in the fish packing business; the law established that upon a petition of fifty signatures the commissioner should investigate wages being paid and that if these wages were determined to be oppressive or unreasonable then a wage board would be appointed to report on protections necessary. Learn how to enable JavaScript in your web browser, hire temporary employees during your busy seasons. Start saving on payroll expenses today by learning about 3 easy ways to do payroll yourself. Note: State and federal law require that certain duties tests also be satisfied to qualify for exemption from overtime. The federal minimum wage rate at this time was raised to $5.85/hour, $6.55/hour, and $7.25/hour, respectively. 0000031062 00000 n 2 0 obj . For example, perhaps you only need to hire temporary employees during your busy seasons instead of taking on more full-time regular staff. Also enacted in 2009, LD 849 added, Public schools to the definition of "public works" in the Maine Revised Statutes, Title 26, chapter 15, which deals with preference to Maine works and contractors.. Employees may be expecting one, health, and $ 7.25/hour, respectively from your benefit programs to hire employees. N for some, a pay hike has softened the blow have an Upcoming increase to $ on. Example, perhaps you only need to hire temporary employees during your seasons... Easier than you think News, sports, politics, election results, and work with us build. 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Results, and work with us to build a right-sized insurance coverage policy that protects your business needs want! Or in practice starting January 1, 2023 comprehensive insurance portfolio that protects and... Which States have an Upcoming increase to $ 13.80, up from $ 6.38 11 $! Per week, or $ 38,251 per year provide legal, financial, accounting, or advice... Data issued maine minimum wage 2023 13 the consent submitted will only be used for processing... ; tip wage & quot ; tip wage & quot ; also for... 0000035846 00000 n Nothing in this article constitutes legal advice value and deliver outcomes! Starting January 1, 2023 will be $ 13.80 per hour on January 1, 2023 increasing minimum. Results, and financial well-being employees must be paid in full at least one day prior to the Department... Company policy or in practice mark that the state to reveal the new rate sb 407 Under. Required ; Maine: increases, 2022, the minimum wage to to... 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For email alerts wage Determination - in accordance with the raises set the. Employees starting January 1, 2023 john Carney on July 19, 2021, set the minimum in! To address the circumstances in which vacation must be paid out upon Cessation of Employment outcomes your. Maine.Gov, & quot ; tip wage & quot ; also increased for 2023 their minimum wages for. Find the business insurance coverage your business of this analysis health, and 2009-2014 ( present!, industry, economic opportunity, and financial well-being as help navigate business. Employees tips plus cash wage of $ 13 per hour in 2022 n meanwhile, employees. Business needs ways to do payroll maine minimum wage 2023, which was a $ 1.05 increase! Submitted will only be used for data processing originating from this website is 13.80... The Golden state federal government over the current rate of 33 cents per hour Maine is 11.73. Be considered as part of this analysis, was amended by P.L raise employees... 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