Maine — Wage & Hour

Effective January 1, 2026, Maine's minimum wage is set at $15.10 per hour for all covered non-exempt employees. This rate reflects the cost-of-living adjustment required annually under state law and was calculated based on a 3.1% increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region (August 2024–August 2025), then rounded to the nearest five cents. Although 26 M.R.S. § 664(1) set a statutory minimum of $14.65 for 2026, the actual enforceable rate is $15.10 due to the CPI adjustment as announced by the Maine Department of Labor (MDOL).

Statutory and regulatory framework The state minimum wage is set by statute at 26 M.R.S. § 664 and adjusted annually per § 664(1). Each September, the MDOL calculates and publishes the effective minimum wage for the coming year based on the CPI-W.

Official guidance and posting On September 11, 2025, the MDOL formally announced the $15.10 per hour minimum wage for 2026, and updated the official Minimum Wage Poster accordingly. Employers must post the current MDOL minimum wage notice and ensure all regular and tipped employees receive at least the applicable full wage for every hour worked, with limited exceptions as specified in § 663(3).

Coverage and exceptions This minimum wage applies to nearly all employees working in Maine, absent a statutory exemption. The principal exemptions are outlined in 26 M.R.S. § 663(3) and include certain agricultural, seasonal, and exempt professional occupations.

Material update: This section reflects a material update for 2026; the minimum wage increased to $15.10 per hour (superseding the prior $14.65 statutory minimum) by MDOL CPI action, effective January 1, 2026.

Source: 26 M.R.S. § 664 Source: Maine DOL Minimum Wage Poster—2026 Source: Maine DOL press release: 2026 Minimum Wage

Maine requires employers to pay overtime at 1.5 times the regular hourly rate for all hours worked in excess of 40 in a workweek. The regular hourly rate includes all earnings, bonuses, commissions, and other compensation paid or due based on actual work performed, excluding sums excluded from "regular rate" under the FLSA's 29 U.S.C. § 207(e). Maine does not impose a daily overtime threshold.

Material update for 2026: Effective January 1, 2026, Maine’s annual adjustment to the state minimum wage has also raised the white-collar salary threshold above the federal FLSA. The new Maine minimum salary required to treat an employee as exempt from overtime (executive, administrative, or professional capacity) is $871.16 per week ($45,300.32 per year). This reflects 3,000 × the $15.10 state minimum wage announced for 2026, implemented through 26 M.R.S. § 663(3)(K). This new salary threshold supersedes the 2025 rate of $845.21/week ($43,951/year) and applies to work performed on or after January 1, 2026.

Employers must apply this higher salary floor even if the federal FLSA threshold is lower. The duties tests for exemption remain anchored to federal rules (29 C.F.R. Part 541), but the Maine salary floor controls for Maine work. If an employee is paid a salary below $871.16/week or $45,300.32/year, they are entitled to overtime for all hours worked over 40 in a workweek—regardless of duties—in Maine, even if exempt under federal law.

Source: 26 M.R.S. § 664(3) Source: 26 M.R.S. § 663(3)(K) Source: Maine DOL Minimum Wage Announcement for 2026

Maine requires employers to provide employees with at least 30 consecutive minutes of rest time after no more than 6 consecutive hours of work. This requirement applies to all employees as defined in 26 M.R.S. § 663, which covers both hourly and non-exempt salaried employees. Unlike the federal Fair Labor Standards Act, which imposes no meal or rest break requirement, Maine law mandates this break period statewide.

Unpaid break when completely relieved of duty

The 30-minute rest period may be unpaid if—and only if—the employee is completely relieved of duty during that time. An employee who must remain at their workstation, answer phones, monitor equipment, or perform any other job function during the break must be paid for that time. The "completely relieved of duty" standard comes from the statute itself and mirrors the federal compensability rule for bona fide meal periods.

Emergency exception

The rest-break requirement does not apply in cases of emergency in which there is danger to property, life, public safety, or public health. The statute does not define "emergency," but the plain language suggests it must involve immediate, serious risk—not routine business pressure or understaffing.

Collective bargaining and written agreements

The 30-minute rest-break rule applies "in the absence of a collective bargaining agreement or other written employer-employee agreement providing otherwise." Employers and employees may agree in writing to a different arrangement, including shorter breaks, more frequent breaks, or a waiver of the break entirely. However, any such agreement must be in writing; oral understandings do not satisfy the statutory exception.

Small business exemption

Section 601 does not apply to any workplace where both of the following conditions are met:

• Fewer than 3 employees are on duty at any one time; and
• The nature of the work allows the employee frequent paid breaks of a shorter duration during the workday.

Both prongs must be satisfied. A workplace with fewer than 3 employees on duty is still covered by the rest-break rule unless the work itself provides frequent paid break opportunities. Conversely, a workplace with frequent natural pauses in work (e.g., a retail counter with lulls between customers) remains subject to the 30-minute requirement if 3 or more employees are on duty simultaneously.

Application to multi-state employers

For employers with operations in multiple states, Maine's rest-break rule applies to employees performing work in Maine, regardless of where the employer is headquartered or where payroll is administered. An employee who works a full shift in Maine must receive the 30-minute break after 6 hours even if the employer's home state (e.g., New Hampshire, which has no meal-break statute) imposes no such requirement. Federal law does not preempt state meal-break mandates; the more protective state rule controls.

Source: 26 M.R.S. § 601

Maine permits employers to pay a reduced direct cash wage to service employees (tipped employees) by taking a "tip credit" against the full minimum wage, subject to statutory limits and notice requirements.

Updated 2026 rates and thresholds

Effective January 1, 2026, the Maine Department of Labor set the state minimum wage at $15.10 per hour, with a corresponding direct wage (tipped employee wage) of $7.55 per hour and a maximum allowable tip credit of $7.55 per hour. This reflects annual CPI-W cost-of-living adjustments as implemented by the DOL under statutory authority (26 M.R.S. § 664(2)). These values are scheduled to adjust again every January 1 alongside any minimum wage change.

Minimum direct cash wage — 50% floor

Employers may take a tip credit not to exceed 50% of the state minimum wage for service employees. The direct wage (tipped employee wage) plus actual tips must reach or exceed the full minimum wage for every workweek; otherwise, the employer must make up the difference in direct wages. The 50% tip credit applies even if the employee earns substantial tips, so the direct wage may not fall below $7.55 in 2026.

Definition and tip threshold — 2026

A “service employee” eligible for a tip credit must customarily and regularly receive more than $191 per month in tips (this threshold is adjusted annually for inflation per 26 M.R.S. § 663(8)). Employees who do not meet this threshold must be paid the full minimum wage with no tip credit taken.

Advance notification and tip ownership

Employers electing to use a tip credit must inform affected employees in advance (orally or in writing) of the tip credit provisions and all related statutory requirements. Employers may not require tip sharing with supervisors or the employer; all tips, including those paid by credit card, are the property of the employee and must be paid to the employee no later than the next regular payday (without deduction for card processing fees).

Tip pooling

Tip pooling is allowed among service employees under conditions that comply with state law and do not violate federal FLSA regulations. If the tip credit is taken, only service employees may participate in the pool.

Key effective date and update

The 2026 rates fully supersede 2025 guidance. Previous values (minimum wage $14.65, tipped wage $7.33, tip credit $7.32) are now obsolete as of January 1, 2026. Future annual adjustments are announced each September by the Maine DOL for the following January.

Source: 26 M.R.S. § 664(2) | 26 M.R.S. § 663(8) | Maine DOL Minimum Wage FAQ (2026) | Maine DOL news release (Sept. 2025)

Two Maine municipalities have enacted local minimum wage ordinances that exceed the state minimum wage of $15.10 per hour: Portland and Rockland. Employers with employees who perform work within the physical boundaries of these cities must comply with the higher municipal rates for hours worked in those locations, even if the employer is headquartered outside the city or the state.

Portland — $16.75 per hour (2026)

The City of Portland requires employers to pay a minimum wage of $16.75 per hour, effective January 1, 2026. The ordinance, codified in Portland City Code Chapter 33, applies to all employees who perform work within the city's municipal limits, regardless of the employer's size or principal place of business. The minimum wage adjusts annually based on the percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U) for the Northeast Region.

For service employees (those who regularly receive more than $191 per month in tips), Portland permits employers to take a tip credit, but the direct cash wage may not fall below 50% of the city minimum wage. As of January 1, 2026, employers must pay tipped employees a direct wage of at least $8.38 per hour. If the employee's direct wage combined with actual tips received does not average at least $16.75 per hour on a weekly basis, the employer must pay the difference.

The Portland City Manager's Office enforces the ordinance. Employees may also pursue private causes of action for violations. Portland employers must post the city's minimum wage notice in a conspicuous place and maintain payroll records for at least three years after an employee's departure.

Rockland — $16.00 per hour (employers with more than 25 employees, 2026)

The City of Rockland requires employers with more than 25 employees to pay a minimum wage of $16.00 per hour, effective January 1, 2026, for all hours worked within the city's physical boundaries. The ordinance, codified in Rockland City Code Article I, Section 2-116, does not apply to employers with 25 or fewer employees; those employers must pay only the state minimum wage of $15.10 per hour.

The Rockland minimum wage adjusts annually on January 1 based on the percentage increase in the cost of living, using the Consumer Price Index for the Northeast Region.

For service employees (those who regularly receive more than $191 per month in tips), Rockland permits a tip credit. Employers must pay tipped employees a direct cash wage of at least $8.00 per hour as of January 1, 2026 (50% of the Rockland minimum wage). If the employee's direct wage combined with actual tips received does not equal or exceed $16.00 per hour, the employer must pay the service employee the difference.

Location-based application

The Maine Department of Labor has confirmed that municipal minimum wage ordinances apply based on where the work is performed, not where the employer is headquartered or where payroll is administered. An employee who works from home in Portland must be paid the Portland minimum wage, even if the employer has no physical presence in Portland and the employee occasionally works at a company office in another city. Employers with employees who work in multiple jurisdictions during a single workweek may be required to track hours by location and pay the applicable minimum wage for each hour worked in each jurisdiction.

The state retains jurisdiction over all other wage and hour rules, including overtime, meal and rest breaks, final paycheck timing, and wage statement requirements. Only the minimum wage floor is raised by the municipal ordinances.

2024 Update: Broken Portland minimum wage ordinance link replaced

The primary Portland minimum wage ordinance information is now maintained here: https://www.portlandmaine.gov/DocumentCenter/View/31020/Minimum-Wage-Poster-Effective-010124-Through-123124. No substantive changes to rates/effective dates identified.

Source: Portland minimum wage ordinance, poster (Jan. 1, 2026) | Rockland minimum wage notice (Jan. 1, 2026) | Maine DOL minimum wage poster (Jan. 1, 2026) | Maine DOL municipal minimum wage FAQ

Maine exempts specific categories of employees from the state's overtime requirement (1.5× the regular hourly rate for hours worked over 40 in a workweek) under 26 M.R.S. § 664(3). These exemptions are occupation-specific and industry-specific statutory carve-outs. An employee who falls within one of these categories is not entitled to Maine overtime pay under § 664(3), though federal FLSA overtime rules may still apply.

Automobile industry employees — § 664(3)(A)

Automobile mechanics, automobile parts clerks, automobile service writers, and automobile salespersons (as defined in 26 M.R.S. § 663) are exempt. The statute requires that interpretation of these terms be consistent with the interpretation of the same terms under federal overtime law, 29 U.S.C. § 213.

Under § 663(14), "automobile service writer" means a person employed primarily to receive, analyze, and reference requests for service, repair, or analysis of motor vehicles, employed by an establishment primarily engaged in selling automobiles or trucks to the ultimate purchaser, whose annual compensation exceeds 3,000 times the state minimum hourly wage or the annualized rate established by the U.S. Department of Labor under the FLSA, whichever is higher. The definition excludes employees paid by the employer on an hourly basis.

Fisheries and agricultural processing — § 664(3)(F)

Employees engaged in the canning, processing, preserving, freezing, drying, marketing, storing, packing for shipment, or distributing of certain products are exempt. The statute does not enumerate which specific products fall within this exemption; the language mirrors the structure of federal agricultural exemptions.

However, the statute expressly excludes one category from this exemption: "Individuals employed, directly or indirectly, for or at an egg processing facility that has over 300,000 laying birds must be paid overtime in accordance with this subsection" (§ 664(3)(F), as amended by Public Law 2019, c. 387, § 1). Employees at large egg processing facilities are therefore entitled to Maine overtime pay.

Certain drivers and driver's helpers — § 664(3)(K)

A driver or driver's helper who is not paid hourly and is subject to the provisions of 49 U.S.C. § 31502 (federal motor carrier hours-of-service rules) or to regulations adopted under that section is exempt and "governed by the applicable provisions of federal law with respect to payment of overtime."

The statute adds: "Nothing in this paragraph may be construed to limit the rights of parties to negotiate rates of pay for drivers and driver's helpers who are represented for purposes of collective bargaining by a labor organization certified by the National Labor Relations Board or who are employed by an entity that is party to a contract with the Federal Government or an agency of the Federal Government that dictates the minimum hourly rate of pay to be paid a driver or driver's helper" (§ 664(3)(K)).

The exemption applies only to non-hourly drivers; hourly-paid drivers subject to 49 U.S.C. § 31502 do not fall within this exemption.

State fire protection and law enforcement employees — § 664(3)(L)

Public employees employed by the executive or judicial branch of the State of Maine who are engaged in fire protection activities (as defined in 29 U.S.C. § 203(y)) or in law enforcement activities (as defined in 29 C.F.R. § 553.211), and who are eligible to have overtime pay calculated and paid in accordance with 29 U.S.C. § 207(k), are exempt from Maine's standard overtime rule.

Section 207(k) is the FLSA's partial overtime exemption for fire protection and law enforcement employees, which permits employers to calculate overtime on a work period longer than the standard workweek (e.g., a 28-day cycle for firefighters).

Under § 664(4), the overtime pay requirement applicable to "executive or judicial employees as described in subsection 3, paragraph D" may be met through compensatory time agreements, to the extent permitted under 29 U.S.C. § 207(o).

Repealed exemptions

Paragraphs B, C, D, E, G, H, I, and J of § 664(3) have been repealed or are now blank in the current codification. The legislative history shows Public Law 2001, c. 628; Public Law 2007, c. 640; and Public Law 2011, c. 681 repealed or restructured these paragraphs. Employees formerly covered by these exemptions are now subject to Maine's overtime requirement unless they qualify under a remaining exemption or under the federal FLSA.

Relationship to federal white-collar exemptions

The exemptions in § 664(3) are separate from the federal FLSA's white-collar exemptions for executive, administrative, professional, computer, and outside-sales employees under 29 U.S.C. § 213(a)(1) and 29 C.F.R. Part 541.

Maine does not incorporate the federal white-collar exemptions by reference. Instead, Maine establishes its own salary threshold for exempt status. Under 26 M.R.S. § 663(3)(K) (definition of "executive, administrative and professional capacity"), an employee must earn annual compensation exceeding "3000 times the State's minimum hourly wage or the annualized rate established by the United States Department of Labor under the federal Fair Labor Standards Act, whichever is higher."

With Maine's minimum wage at $15.10 per hour effective January 1, 2026, the Maine salary threshold is $45,300 per year (3,000 × $15.10), compared to the federal threshold of $35,568 annually ($684/week). An employee who meets the federal duties test and earns less than $45,300 annually is entitled to overtime under Maine law for hours worked in Maine, even if exempt under federal law.

Minimum wage coverage

The exemptions in § 664(3) apply only to the overtime requirement. Unless separately exempted from the definition of "employee" in § 663(3) or from the minimum wage provisions in § 664(1) and (2), an employee exempt from overtime must still be paid at least Maine's minimum hourly wage for all hours worked.

Source: 26 M.R.S. § 664 | 26 M.R.S. § 663

Maine establishes its own minimum salary threshold for white-collar overtime exemptions (executive, administrative, and professional employees) under 26 M.R.S. § 663(3)(K). An employee who meets the federal duties test under 29 C.F.R. Part 541 but earns less than Maine's salary threshold is entitled to overtime pay under state law for hours worked in Maine, even if the employee would be exempt under the federal Fair Labor Standards Act.

The formula — Maine or federal, whichever is higher

Under § 663(3)(K), to qualify as an employee working "in a bona fide executive, administrative or professional capacity" (and thus exempt from Maine's minimum wage and overtime requirements), a salaried employee's "regular compensation, when converted to an annual rate," must exceed 3,000 times the State's minimum hourly wage or the annualized rate established by the United States Department of Labor under the federal Fair Labor Standards Act, whichever is higher.

The statute creates a ratchet: Maine's threshold is the greater of (1) 3,000 × Maine's minimum wage, or (2) the federal FLSA salary threshold. Because Maine's minimum wage adjusts annually for cost of living under § 664(1), Maine's exemption threshold also adjusts automatically each January 1.

2026 thresholds

Effective January 1, 2026, Maine's minimum wage is $15.10 per hour. The Maine salary threshold is therefore:

• $45,300 annually (3,000 × $15.10 = $45,300)
• $871.16 per week ($45,300 ÷ 52)

The federal FLSA salary threshold, restored by the U.S. Department of Labor in May 2026 after vacatur of the 2024 rule, is $684 per week ($35,568 annually) under 29 C.F.R. § 541.600. Because Maine's threshold ($871.16/week) exceeds the federal threshold ($684/week), Maine's higher threshold controls for employees working in Maine.

An employee who earns $40,000 per year and meets the federal executive, administrative, or professional duties test would be exempt from overtime under the FLSA but not exempt under Maine law. The employer must pay that employee overtime at 1.5× the regular rate for all hours worked over 40 in a workweek.

The threshold adjusts annually with the minimum wage

The Maine Department of Labor announces the new minimum wage each September, effective the following January 1. The exemption salary threshold resets automatically. For 2025, the minimum wage was $14.65 per hour, yielding a salary threshold of $43,950 annually ($845.21/week). For 2026, the threshold rose to $45,300 annually ($871.16/week). Employers must confirm each January that salaried exempt employees still meet the updated threshold or reclassify them as non-exempt and begin paying overtime.

Duties test remains separate

The salary threshold is only one prong. The employee must also meet the applicable duties test under federal regulations. Maine does not adopt its own state-specific duties test for white-collar exemptions; instead, Maine references the federal FLSA framework. However, the Maine Department of Labor has adopted regulations under 26 M.R.S. § 663(3)(K) that incorporate by reference the federal duties tests in 29 C.F.R. Part 541 (as in effect on August 22, 2004) while preserving Maine's higher salary floor.

An employee who meets the salary threshold but does not spend the requisite portion of time on exempt duties, or who lacks the required level of discretion or management authority, remains non-exempt regardless of salary. Employers must evaluate both the salary level and the duties independently.

Multi-state employers

For employers with operations in multiple states, Maine's salary threshold applies to employees performing work in Maine, regardless of where the employer is headquartered or where payroll is administered. An employee who works remotely from Maine for an out-of-state employer must be paid overtime if their salary falls below Maine's threshold, even if the employer's home state (e.g., New Hampshire, which follows the federal $684/week threshold) does not require it. The more protective state rule controls for work performed in that state.

Municipal minimum wages do not raise the exemption threshold

Portland and Rockland have enacted municipal minimum wage ordinances that exceed the state minimum wage. Portland's minimum wage is $16.75 per hour as of January 1, 2026; Rockland's is $16.00 per hour (for employers with more than 25 employees). However, the white-collar exemption salary threshold in § 663(3)(K) is calculated using the state minimum hourly wage ($15.10), not the municipal rate. The exemption threshold remains $45,300 annually statewide, including in Portland and Rockland. Municipal ordinances raise only the minimum wage floor, not the exemption salary formula.

Source: 26 M.R.S. § 663(3)(K) | 26 M.R.S. § 664 | Maine DOL minimum wage announcement (Sept. 2025) | Maine DOL minimum wage poster (Jan. 2026) | 29 C.F.R. § 541.600