Minimum Wage Posting
The Maine Department of Labor (MDOL) has updated the mandatory Minimum Wage workplace posting. Effective January 1, 2021, the minimum wage rate will increase from $12.00 to $12.15 per hour. This increase is pursuant to annual adjustments to the minimum wage by the cost of living index (CPI-W) beginning in 2021. (MRS Title 26 §42-B)
The service employee minimum wage is also scheduled to increase in 2021. Service employees must receive at least a direct cash wage of $6.08 per hour. Employers must be able to show that the employee receives at least the minimum wage of $12.15 per hour when the direct wage and tips are combined at the end of the week. Finally, the minimum salary threshold for exempting a worker from overtime pay is increasing. Starting January 1, 2021, the new minimum salary threshold is $700.97 per week, or $36,450 per year. These rates are reflected on the updated Maine 2021 Minimum Wage posting. All employers must display this posting in the workplace where workers can easily see it. (Title 26 M.R.S.A §42-B)
Please note that employers in the City of Portland are also required to display the Portland Minimum Wage Poster. Effective January 1, 2021, employers in the City are required to pay hourly employees the State of Maine minimum wage of $12.15 per hour. Then, starting January 1, 2022, the minimum wage, will be raised to $13.00 per hour.
Regulation of Employment Posting
On January 1, 2021, private employers with more than 10 employees in Maine must provide one hour of paid leave for every 40 hours worked, up to 40 hours in one year of employment. A covered employee may include a person who is employed full-time, part-time or per diem. The leave may be taken for any reason. The MDOL has updated the Regulation of Employment posting to reflect this new leave. All employers are required to display the Regulation of Employment posting in the workplace. (Title 26 M.R.S.A §42-B)
Employees start accruing leave at the start of employment; however, employers may restrict the use of leave until an employee has been employed for 120 calendar days during a one-year period. The employer may also place reasonable limits on the scheduling of earned paid leave for reasons other than emergency, illness or other sudden necessity, to prevent undue hardship on the employer as reasonably determined by the employer. Undue hardship is defined as a significant impact on the operation of the business or significant expenses, considering the financial resources of the employer, the size of the workforce, and the nature of the industry.
Covered employees should make a good faith effort to provide as much notice as is feasible under the circumstances to the employer of their intent to use earned paid leave. Absent an emergency, employers may have a written policy requiring up to 4 weeks’ notice. “Emergency” is anything within reason that is unforeseen and requires the employee to interrupt their work schedule. An employer cannot require a medical note or other documentation unless the leave is for more than three consecutive days.
Maine employers can comply with their posting obligations by updating their Maine workplace poster. Order your Maine All-On-OneTM Labor Law Poster or a Maine Mobile Poster PakTM for desk reference or mobile worksites by clicking the links or calling a Compliance Advisor at 1-888-815-7497.