Maine Employment Law 2026

2.1 Wage and Hour Rights

Maine law establishes comprehensive wage and hour protections for employees, often exceeding federal requirements.

2.1.1 Minimum Wage

Current Maine Minimum Wage (2026):

$14.65 per hour

Effective Date: January 1, 2025 (remains in effect through 2026)

Statutory Authority:

According to Maine Revised Statutes Title 26 § 664:

“Except as otherwise provided in this subchapter, an employer may not employ any employee at a rate less than the rates required by this section… Starting January 1, 2020, the minimum hourly wage is $12.00 per hour. On January 1, 2021 and each January 1st thereafter, the minimum hourly wage then in effect must be increased by the increase, if any, in the cost of living.”

Source: Maine Revised Statutes Title 26 § 664(1)
Official text: https://legislature.maine.gov/statutes/26/title26sec664.html
Last amended: 2016 (via initiative)

Annual Adjustment Mechanism:

Maine’s minimum wage adjusts annually based on cost of living increases, measured by:

• Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)
• Northeast Region index
• Percentage increase as of August compared to previous year
• Rounded to nearest multiple of 5¢

Source: Maine Department of Labor
Published: December 2024
Available at: https://www.maine.gov/labor/labor_laws/faq/index.shtml

Federal Comparison:

The federal minimum wage remains $7.25 per hour under the Fair Labor Standards Act (FLSA). Maine’s higher state minimum wage applies to covered employees.

Source: Fair Labor Standards Act, 29 U.S.C. § 206
Official text: https://www.dol.gov/agencies/whd/minimum-wage

Coverage:

Maine’s minimum wage applies to most employees, with specific exemptions detailed in Title 26 § 663(3).

2.1.2 Exemptions from Minimum Wage

The following categories are exempt from Maine’s minimum wage requirements:

According to Maine Revised Statutes Title 26 § 663(3):

Exempt Categories:

A. Agricultural employees (except employees performing services for farms with over 300,000 laying birds)

B. Employees in domestic service

C. Employees of summer camps for no more than 3 months annually

D. Employees of religious and charitable organizations

E. Employees of a federal, state, or municipal government

F. Outside salespeople

G. Persons who provide companionship services for individuals unable to care for themselves

H. Casual babysitters

I. Persons engaged in activities of an educational, charitable, or religious nature where employer-employee relationship does not exist

J. Participants in government training programs

K. Salaried employees in bona fide executive, administrative, or professional capacity whose regular compensation, when converted to annual rate, exceeds 3,000 times the state’s minimum hourly wage ($43,950 for 2026 based on $14.65 minimum wage)

Source: Maine Revised Statutes Title 26 § 663(3)
Official text: https://legislature.maine.gov/statutes/26/title26sec663.html

2.1.3 Tip Credit

Maine allows employers to take a “tip credit” and pay tipped employees a lower direct wage, with tips making up the difference.

Tipped Employee Direct Wage (2026):

$7.33 per hour (50% of minimum wage)

Requirements for Tip Credit:

According to Maine Revised Statutes Title 26 § 664(2):

Employers may pay tipped employees 50% of the minimum hourly wage if:

1. Employee receives more than $30 per month in tips
2. Combined direct wage plus tips equals at least minimum wage
3. Employee retains all tips (except valid tip pooling)
4. Employer informs employee of tip credit provisions

Tip Pooling:

Valid tip pooling arrangements must meet these requirements:

According to Maine Revised Statutes Title 26 § 664(2-A):

Type A – When employer uses tip credit:

• Pooling only among service employees
• Cannot include supervisors or managers

Type B – When employer pays full minimum wage (no tip credit):

• Pooling among group of employees
• Employer may not receive tips from pool
• Supervisors and managers cannot receive tips from pool

Source: Maine Revised Statutes Title 26 § 664(2), (2-A)
Official text: https://legislature.maine.gov/statutes/26/title26sec664.html
Last amended: 2023

Service Charges:

For banquet or private club settings, employers must:

• Notify customers that service charges are not tips for service employees
• May use service charges to meet compensation obligations at minimum wage rate

Source: Maine Revised Statutes Title 26 § 664(2-B)

2.1.4 Overtime Requirements

Maine requires overtime pay for hours worked over 40 in a workweek.

Overtime Rate:

According to Maine Revised Statutes Title 26 § 664(3):

“An employer may not require an employee to work more than 40 hours in any one week unless 1 1/2 times the regular hourly rate is paid for all hours actually worked in excess of 40 hours in that week.”

Source: Maine Revised Statutes Title 26 § 664(3)
Official text: https://legislature.maine.gov/statutes/26/title26sec664.html

Key Requirements:

• Threshold: 40 hours per workweek
• Rate: 1.5 times regular hourly rate
• Calculation: Based on hours actually worked, not scheduled
• No Daily Overtime: Maine does not require overtime for hours worked over 8 in a day (unlike California)
• Workweek Definition: Any fixed, regularly recurring period of 168 hours (7 consecutive 24-hour periods)

Federal Comparison:

Maine’s overtime requirement mirrors the federal FLSA standard.

Source: Fair Labor Standards Act, 29 U.S.C. § 207(a)(1)
Official text: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section207&num=0&edition=prelim

2.1.5 Exemptions from Overtime

Maine exempts several categories of employees from overtime requirements:

According to Maine Revised Statutes Title 26 § 664(3):

Exempt Categories:

A. Agricultural employees

B. Employees engaged in activities of a religious or charitable nature where employer-employee relationship does not exist

C. Mariners

D. Public employees (except those employed by executive or judicial branch of state)

F. Employees engaged in canning, processing, preserving, freezing, drying, marketing, storing, packing for shipment of agricultural products

K. Drivers or driver’s helpers not paid hourly and subject to federal motor carrier provisions

Salaried Executive, Administrative, and Professional Employees:

According to Maine Department of Labor guidance published November 2024:

Maine recognizes the exemption from overtime for employees working in “bona fide executive, administrative or professional capacity.”

Three-Prong Test:

1. Salary Basis: Employee receives predetermined compensation each pay period
2. Salary Threshold: Must exceed $38,250 annually (3,000 times minimum hourly wage of $12.75)
3. Duties Test: Job duties must meet administrative, professional, or executive tests

Source: Maine Department of Labor
Published: November 2024
Available at: https://www.maine.gov/labor/labor_laws/overtime.html

Important: Paying an employee on salary basis alone does not make them exempt. All three prongs must be met.

Source: Maine Revised Statutes Title 26 § 663(3)(K) and § 664(3)

2.1.6 Meal and Rest Breaks

Maine Rest Break Requirement:

Maine law requires rest breaks for most employees.

According to Maine Department of Labor FAQ:

“Employers must offer employees a consecutive 30-minute unpaid or paid rest break after 6 hours worked.”

Key Requirements:

• Trigger: After 6 hours of continuous work
• Duration: 30 consecutive minutes
• Paid or Unpaid: Employer’s choice
• Employee Waiver: Employee may waive right to break (preferably in writing)
• Work Through Break: If employer allows employee to work through break, time must be paid

Source: Maine Department of Labor FAQ
Verified: January 2026
Available at: https://www.maine.gov/labor/labor_laws/faq/index.shtml

Shorter Breaks:

Shorter breaks (typically 5-20 minutes) are:

• Not required by Maine law
• Common but voluntary
• Must be paid if provided
• Cannot be deducted from hours worked

No Meal Break for Work Under 6 Hours:

Maine law does not require rest breaks for employees working 6 hours or less in a shift.

Federal Law:

Federal law (FLSA) does not require meal or rest breaks.

Source: U.S. Department of Labor, Wage and Hour Division
Available at: https://www.dol.gov/general/topic/workhours/breaks

2.1.7 Payment of Wages

Regular Payday Requirements:

Maine law requires regular wage payments.

According to Maine Revised Statutes Title 26 § 621:

“Every employer of persons engaged in any manufacturing, mechanical or mercantile or street railway establishment shall pay weekly or at intervals not to exceed 16 days the amount due such person…”

Key Requirements:

• Frequency: At least once every 16 days for most employees
• Payment Method: Cash, check, or direct deposit (with employee consent)
• Deductions: Only authorized deductions permitted
• Wage Statements: Employer must provide statement showing hours worked, rate of pay, and deductions

Final Paycheck Requirements:

According to Maine Department of Labor FAQ:

“All earned wages are due on the next regularly scheduled payday after the termination of employment.”

Requirements:

• Timing: Next regularly scheduled payday or within 2 weeks (whichever is earlier)
• Method: Check available at business location or mailed to reach employee by payday
• Includes: All earned wages and accrued earned paid leave (if in policy)

Source: Maine Department of Labor FAQ
Available at: https://www.maine.gov/labor/labor_laws/faq/index.shtml

Unauthorized Deductions Prohibited:

Maine law prohibits employers from requiring employees to pay for:

• Cash register shortages
• Damaged or broken merchandise
• Customer walkouts or bad checks
• Credit card errors

According to Maine Department of Labor FAQ:

“An employer cannot require or allow an employee to pay back for cash shortages, damages, customer walkouts, or credit card errors.”

Source: Maine Department of Labor FAQ
Verified: January 2026

2.1.8 Equal Pay Requirements

Maine prohibits wage discrimination based on sex and race.

Sex-Based Wage Discrimination:

According to Maine Revised Statutes Title 26 § 628:

“No employer may discriminate between employees in the same establishment on the basis of sex by paying wages to any employee in any occupation in this State at a rate less than the rate at which the employer pays any employee of the opposite sex for comparable work on jobs that have comparable requirements relating to skill, effort and responsibility.”

Source: Maine Revised Statutes Title 26 § 628
Official text: https://legislature.maine.gov/statutes/26/title26sec628.html

Race-Based Wage Discrimination:

Maine amended its equal pay law in 2024 to prohibit wage discrimination based on race.

According to the amendment to Title 26 § 628:

“An employer may not discriminate between employees in the same establishment on the basis of race by paying wages to any employee in any occupation in this State at a rate less than the rate at which the employer pays any employee of another race for comparable work on jobs that have comparable requirements relating to skill, effort and responsibility.”

Source: Public Law 2023, Chapter 511
Effective: January 1, 2025
Available at: https://www.mainelegislature.org/legis/bills/getPDF.asp?paper=HP1092&item=3&snum=131

Wage Disclosure Protection:

Employers cannot:

• Prohibit employees from disclosing their own wages
• Prohibit employees from inquiring about or disclosing another employee’s wages (if purpose is enforcing equal pay rights)

2.1.9 Recordkeeping Requirements

Employers must maintain accurate wage and hour records.

Federal Requirements (FLSA):

According to 29 C.F.R. § 516.2:

Employers must keep records showing:

• Employee’s full name and social security number
• Address and zip code
• Birth date (if under 19)
• Sex and occupation
• Time and day of week workweek begins
• Hours worked each day and total hours each workweek
• Basis of wage payment
• Regular hourly rate
• Total daily or weekly straight-time earnings
• Total overtime earnings for workweek
• All additions to or deductions from wages
• Total wages paid each pay period
• Date of payment and pay period covered

Retention Period: 3 years for payroll records; 2 years for time cards and wage rate tables

Source: Fair Labor Standards Act, 29 C.F.R. § 516.2
Available at: https://www.ecfr.gov/current/title-29/subtitle-B/chapter-V/subchapter-A/part-516

Maine Salary Threshold Documentation:

According to Maine Department of Labor guidance:

Employers must maintain records demonstrating exempt employees meet the salary threshold of $38,250 annually (3,000 times state minimum wage).

Source: Maine Department of Labor
Available at: https://www.maine.gov/labor/labor_laws/overtime.html

2.2 Earned Paid Leave

Maine requires employers with more than 10 employees to provide earned paid leave.

Statutory Authority:

According to Maine Revised Statutes Title 26 § 637:

“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 as provided in this section.”

Source: Maine Revised Statutes Title 26 § 637(2)
Official text: https://legislature.maine.gov/statutes/26/title26sec637-2.html
Effective: January 1, 2021

2.2.1 Coverage

Employer Coverage:

Earned paid leave applies to employers who:

• Employ more than 10 employees
• In usual and regular course of business
• For more than 120 days in any calendar year

Employee Counting: Based on quarterly reports to Maine Bureau of Unemployment Compensation

Source: Maine Department of Labor, Earned Paid Leave FAQ
Available at: https://www.maine.gov/labor/labor_laws/earnedpaidleave/eplfaq/index.shtml

Employee Coverage:

According to Maine Department of Labor FAQ:

Earned paid leave covers employees reported on unemployment insurance quarterly reports, with the same definitions and exemptions as the Employment Security Act.

Not Covered:

• Employees of employers with 10 or fewer employees
• Seasonal employees
• Employees covered by collective bargaining agreements (during agreement term until expiration)
• Students in certain work-study and training programs

Source: Maine Department of Labor, Earned Paid Leave FAQ
Verified: January 2026

2.2.2 Accrual

Accrual Rate:

According to Maine Revised Statutes Title 26 § 637(3):

“An employee is entitled to earn one hour of paid leave from a single employer for every 40 hours worked, up to 40 hours in one year of employment.”

Key Requirements:

• Rate: 1 hour per 40 hours worked
• Annual Cap: 40 hours per year
• Start: Accrual begins at start of employment
• Use Eligibility: Employer not required to permit use until employee has been employed 120 days

Source: Maine Revised Statutes Title 26 § 637(3)
Official text: https://legislature.maine.gov/statutes/26/title26sec637-2.html

2.2.3 Carryover

Carryover Requirement:

Accrued and unused hours must carry forward to the following year.

According to Maine Revised Statutes Title 26 § 637(3) as amended in 2025:

“Accrued and unused hours of earned paid leave carried forward from the previous year of employment may not reduce the total amount of hours of paid leave an employee is entitled to earn in the year of employment immediately following the previous year, up to 40 hours or the accrual limit specified in the employer’s policy governing paid leave, whichever is higher.”

What This Means:

• Employees can carry over unused hours from previous year
• Carryover hours do not count against the 40-hour annual accrual entitlement
• If employer policy allows higher accrual limit, employees can earn up to that limit

Source: Maine Revised Statutes Title 26 § 637(3)
Last amended: 2025, effective January 1, 2026

2.2.4 Use

Permitted Uses:

Employees may use earned paid leave for any reason. The law does not restrict reasons for use.

Rate of Pay:

According to Maine Revised Statutes Title 26 § 637(4):

“An employee while taking earned leave must be paid at least the same base rate of pay that the employee received immediately prior to taking earned leave and must receive the same benefits as those provided under established policies of the employer pertaining to other types of paid leave.”

Notice Requirements:

According to Maine Revised Statutes Title 26 § 637(5):

“Absent an emergency, illness or other sudden necessity for taking earned leave, an employee shall give reasonable notice to the employee’s supervisor of the employee’s intent to use earned leave. Use of leave must be scheduled to prevent undue hardship on the employer as reasonably determined by the employer.”

What This Means:

Foreseeable Leave:

• Employee shall give reasonable advance notice

Unforeseeable Leave:

• No notice required if emergency, illness, or sudden necessity

Employer Policies:

Employers may establish reasonable policies regarding:

• Notice requirements
• Documentation for leave over 3 consecutive days
• Scheduling of foreseeable leave

Source: Maine Revised Statutes Title 26 § 637(5), (6)

2.2.5 Payout at Termination

Payout of unused earned paid leave depends on employer policy.

According to Maine Revised Statutes Title 26 § 637(7):

“An employer’s policy may, but is not required to, include payment to an employee upon separation from employment for unused, accrued leave.”

What This Means:

• Not required unless employer policy or practice provides for payout
• If employer policy states payout, must be paid
• If employer practice has been to pay out, must continue

Source: Maine Revised Statutes Title 26 § 637(7)

2.3 Employee Rights Summary

Maine employees have the following wage and hour rights:

Minimum Wage: $14.65 per hour (2026)

Overtime Pay: 1.5 times regular rate for hours over 40 per week (if not exempt)

Rest Breaks: 30 consecutive minutes after 6 hours worked

Earned Paid Leave: 1 hour per 40 hours worked (employers with 10+ employees)

Final Paycheck: Next regularly scheduled payday or within 2 weeks after termination

Equal Pay: No wage discrimination based on sex or race for comparable work

Wage Disclosure: Right to discuss wages with other employees

Written Termination Reasons: Upon written request within 15 days

Whistleblower Protection: Cannot be terminated for reporting violations of law

Anti-Discrimination: Cannot be terminated based on protected class status

Personnel File Access: Right to review personnel file annually