Maine’s minimum wage to increase for 2022

10/07/21

Author: ADP Admin/Sunday, October 3, 2021/Categories: Compliance Corner

Maine’s minimum wage will increase to $12.75 per hour on January 1, 2022. The change is a result of an annual adjustment for inflation.

Tipped Employees:

The minimum direct cash wage for tipped employees will be $6.38 per hour in 2022. If the employee's direct cash wages and tips don't equal or exceed the minimum wage ($12.75 per hour), the employer must make up the difference.

Administrative, Professional, and Executive Exemptions:

To be classified as exempt from overtime under state law, bona fide administrative, professional, and executive employees must satisfy certain salary and duties tests. The minimum salary requirement for exemption is based on the state minimum wage. As a result of the change in the minimum wage, the minimum salary required for these exemptions under state law will increase to $735.59 per week, or $38,251 per year, on January 1, 2022.

Compliance Recommendations:

Maine employers must ensure that all non-exempt employees receive at least the minimum wage per hour and that exempt employees meet the minimum salary for exemption. Employers must also post an updated minimum wage notice.

Employers with exempt employees must ensure that these workers’ salaries meet the new minimum salary requirement (as well as applicable duties tests). Otherwise, these workers must generally be classified as non-exempt and paid overtime whenever they work more than 40 hours in a workweek.

Note: The cities of Portland and Rockland in Maine have their own minimum wage laws. On January 1, 2022, the minimum wage in both cities will increase to $13 per hour. As such, work performed in these two cities by non-exempt employees must be compensated at a rate of at least $13 per hour.

Please contact your dedicated service professional with any questions.

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