Maine’s Minimum Wage to Increase on January 1st, Here’s What Mainers Need to Know

Folks like to say, 'New Year, new me,' well, Maine is saying, 'New Year, new minimum wage.'

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That’s right, starting January 1, 2024, Maine's minimum wage will see an increase from $13.80 to $14.15 per hour. This change is in accordance with Maine law, which was amended by a citizen's referendum in 2016, mandating annual adjustments to the minimum wage based on the cost-of-living index (CPI-W) for the Northeast Region. As expected, things got more expensive in the past year; between August 2022 and August 2023, there was a 2.4 percent increase in the CPI-W in our region.

It's important to note that the annual adjustment isn't a fixed amount; rather, it is contingent on the affordability of housing.

When living becomes less affordable, the minimum wage is raised accordingly.

Maine has been raising its minimum wage yearly since voters decided on the increase in 2016 when it was $7.50 per hour. Subsequently, starting on January 1, 2017, it increased to $9.00 per hour, followed by $10.00 on January 1, 2018, $11.00 on January 1, 2019, and $12.00 on January 1, 2020. From January 1, 2021, and each subsequent January 1st, the minimum wage has been adjusted based on the cost of living.

While there are various reasons for the increased cost of living in Maine, it's worth mentioning that the minimum wage still falls well short of meeting the requirements for a "living wage."

Additionally, the new "tip wage" or service employee minimum wage for 2024 will be $7.08 per hour. This means that service employees must receive a direct cash wage of at least $7.08 per hour from their employer. Employers must demonstrate that employees receive at least the minimum wage of $14.15 per hour when combining the direct wage and tips at the end of the week.

Furthermore, the minimum salary threshold for exempting a worker from overtime pay is tied to 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 just one of the factors considered in determining whether a worker is exempt from overtime pay under federal or state law.

So there you have it—Maine is saying, ‘New Year, new minimum wage,’ and it appears that it will be that way for years to come.

While you're here, keep scrolling and check out what Mainers think the state of Maine should have for New Year's resolutions!