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Maine's Minimum Wage to Increase to $14.15 Per Hour in 2024

Pursuant to Maine law (Maine statute Title 26, chapter 7, section 664), effective January 1, 2024, the state minimum wage will increase from $13.80 to $14.15 per hour, based on data recently made available by the U.S. Department of Labor's Bureau of Labor Statistics. Maine law, amended by citizens referendum in 2016, requires annual adjustments to the minimum wage based on the cost-of-living index (CPI-W) for the Northeast Region. Between August 2022 and August 2023, there was a 2.4 percent increase in the CPI-W.

In addition to the minimum wage, the new "tip wage," or service employee minimum wage, in 2024 will be $7.08 per hour. This means that service employees must receive at least a direct cash wage of $7.08 per hour from the employer. The employer must be able to show that the employee receives at least the minimum wage of $14.15 per hour when the direct wage and tips are combined at the end of the week. 

The minimum salary threshold for exempting a worker from overtime pay is also based on the minimum wage. Starting January 1, 2024, the new minimum salary threshold is $816.35 per week, or $42,450.20 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 minimum wage and overtime law can be found here: http://legislature.maine.gov/legis/statutes/26/title26sec664.html . The Department also has more information available on its website at https://www.maine.gov/labor/labor_laws/wagehour.html .

Per Section 7402. Essential support work reimbursement, "an amount equal to at least 125% of the minimum wage established in Title 26, section 664, subsection 1 for the labor portion of the reimbursement rate." In 2024, 125% of the minimum wage will be $17.69 (rounded). 

Staff contact: bhawkins@mehca.org