Changes to state and federal wages as well as overtime compensation will be effective on the first day of the new year in the state of Maine.
Most workers will see a dollar increase of the minimum wage from $11 to $12 per hour.
Another change to note relates to federal overtime pay. Employees are exempt from overtime pay if they are paid a certain amount, tied to the year’s minimum wage rates. For the year 2020, the minimum salary requirement becomes $36,000 per year ($692.31 per week). If earning at least this much, the worker is exempt from overtime pay.
On a federal level, this number will be equal to a minimum salary of $684 per week.
Employers in Maine will be paying the higher rate (state level) as well as meeting the “duties test” to meet the threshold for overtime exemption.
It is estimated that roughly 1,600 workers in the state of Maine will become eligible for overtime pay protection. In addition to the employee salary needing to exceed $36,000, it is important to note that that employee must be receiving compensation via a true salary basis (regularly receiving a predetermined amount each pay period). Also, the employee’s job duties must clearly fall within the executive, administrative, or professional job categories as defined in federal statute.
It is important to understand and comply with these new laws to avoid violations, so the Bureau of Labor Standards is holding free trainings. Learn more about attending a session by calling 207-623-7900.