Maine  MINIMUM WAGES

Maine  State Minimum Wage for 2025

Effective January 1, 2025, Maine increased their minimum wage rates to $14.65 per hour for non-tipped employees, and  for tipped employees the minimum wage rates increased to $7.33 per hour. So, employers must ensure the tipped wages plus tips equals to the standard rate of $14.65 per hour.

The monthly tip threshold has also increased from $179 to $185 per month. Overtime employees are entitled to receive an overtime pay at 1.5 times their regular rates for working beyond 40 hours a week.

Let’s decode the city-wise breakdown of the prominent Maine cities in the next section.

Minimum Wages in Maine Cities

The table below gives an overview of minimum wage rates observed by different cities across Maine.  

Threshold For Employees Exempt

The Fair Labor Standards Act (FLSA) ideally recognizes the U.S. workforce as exempt and non-exempt employees.  

Non-exempt employees are usually low-wage workers who mainly depend on the state minimum wage for their livelihood. They are also entitled to receive an overtime pay of 1.5 times the standard pay, as defined by FLSA.  

Meanwhile, exempt employees are those who draw a fixed salary. A rise in minimum wage rates is less likely to affect exempt employees’ compensation. However, it may prompt them to demand a higher salary from their employers to maintain a pay difference between them and the non-exempt employees.   

As of July 1, 2024, exempt employees must earn at least $844 per week (or $43,888 annually). This was an increase from the previous thresholds of $816.35 per week ($42,450.20 annually). Although the US DOL, planned to increase the salary threshold to $1,128 per week ($58,656 annually), a court ruling blocked this order. Thus, Maine continues to stick to $844 per week as the salary threshold for employees in 2025.

Historical Data of Maine Minimum Wages

Unlike many U.S. states, Maine has a long-standing history of advocating for fair wages for its workforce. Starting from as early as 1959, the state ensured its workers would receive a minimum wage of $1 per hour, matching the federal rate. 

Between 1965 and 1981, Maine’s minimum wage rate rose rapidly, reaching $3.35 per hour. By 1991, Maine reached $4.25 per hour and surpassed the federal minimum to keep pace with inflation and the Consumer Price Index (CPI). In 1997, Maine again aligned with the federal minimum of $5.15 per hour, but starting in the 2000s, the state decided to set independent increases, leaving the federal minimum behind.  

Since then, Maine has witnessed a significant jump in minimum wage rates. For instance, in 2016, the state increased the minimum wage to $8 per hour. Meanwhile, in 2020, it hit the $12 per hour mark, making it one of the states with the best minimum wage policies. 

The table below gives a comprehensive view of how Maine’s minimum wages have increased from 1968 to 2024.  

* – Under the FLSA, the two rates shown in 1968, 1970, and 1976 reflect the former multiple-track minimum wage system in effect from 1961 to 1978.

Source: https://www.dol.gov/agencies/whd/state/minimum-wage/history

Exemptions in Minimum Wages of Maine 

As stated above, Maine aligns with the Fair Labor Standards Act (FLSA) to define exemptions and non-exempt employees in its laws. However, some exemptions also exist beyond these stipulations. They are as follows: 

• State and federal government employees 
• Executive, administrative, and professional (EAP) employees 
• Doctors, lawyers, and real estate agents 
• Full-time students working for their colleges, institutions, and universities 
• Seasonal workers who work less than 60 days per year. 
• Outside salespeople, tipped workers, and individuals with physical and mental disabilities.