Maine’s labor law landscape has undergone significant transformations in 2025, introducing new protections and benefits for workers. From wage increases to enhanced leave policies, employees must stay informed about these changes to ensure their rights are upheld.
Minimum Wage Increase
Effective January 1, 2025, Maine’s minimum wage has risen to $14.65 per hour, marking a 3.6% increase from the previous year. This adjustment aligns with the state’s cost-of-living index, ensuring that wages keep pace with inflation. For tipped employees, the minimum wage is set at $7.33 per hour, provided their combined earnings meet or exceed the standard minimum wage when tips are included.
Overtime Salary Threshold
For salaried employees to qualify for overtime exemptions, their earnings must exceed $845.21 per week (approximately $43,951 annually). This threshold applies to executive, administrative, and professional employees, provided they meet specific job duties criteria. Employers should review employee classifications to ensure compliance with this updated standard.
Earned Paid Leave (EPL) Enhancements
Significant amendments to Maine’s Earned Paid Leave law took effect on September 24, 2025:
- Carryover Flexibility: Employees can now carry over up to 40 hours of unused EPL into the following year without affecting their accrual in the new year. This means employees can accumulate up to 80 hours of paid leave annually.
- Accrual Rate: Employees continue to accrue 1 hour of paid leave for every 40 hours worked, with a maximum of 40 hours per year.
Employers are advised to update their policies and systems to reflect these changes and ensure compliance.
Paid Family and Medical Leave (PFML) Contributions Begin
Starting January 1, 2025, both employers and employees are required to contribute to Maine’s PFML program, which provides job-protected paid leave for family and medical reasons. Employers with 15 or more employees contribute 1% of wages, with up to half deductible from employees’ pay. Employers with fewer than 15 employees contribute 0.5%, with the full amount deductible from employees. Benefits under this program are set to begin on May 1, 2026.
Minimum Pay for Reporting to Work
Effective September 24, 2025, Maine enacted a law requiring employers to compensate employees who report to work but have their shifts canceled or shortened. Employers must pay the lesser of 2 hours of wages or the total amount for the scheduled shift if no alternative work is provided. Exceptions apply in cases of adverse weather, natural disasters, civil emergencies, employee illness, or workplace injuries.
Agricultural Workers’ Minimum Wage
Beginning January 1, 2026, agricultural workers in Maine will be entitled to the state minimum wage, which is set to increase to $15.10 per hour. This change ensures that agricultural laborers receive fair compensation comparable to other workers in the state.
Work Search Waiver Adjustments
For individuals on temporary layoff with a definite return-to-work date, the 6-week work search waiver now applies at the end of the layoff period, rather than at the beginning. This adjustment ensures that employees are not penalized for not seeking other employment during a temporary layoff with a confirmed return date.
Employer Compliance and Employee Rights
Employers are encouraged to:
- Review and update employee handbooks and policies to align with the new Maine labor laws.
- Ensure payroll systems are configured to handle new wage rates, leave accruals, and deductions.
- Provide training to HR personnel and managers on the updated regulations.
Employees should:
- Familiarize themselves with their rights under the new laws.
- Keep records of hours worked, leave taken, and any communications regarding shift changes or cancellations.
- Report any discrepancies or violations to the Maine Department of Labor.
