Beginning on New Year’s Day, Maine’s minimum wage increased to $15.10 per hour.
Following the enactment of a bill signed into law by Gov. Janet Mills (D) last June, this minimum wage will now also apply to the state’s agricultural workers.
In conjunction with this, the tip wage — also known as the tip credit — will also be increased to $7.55.
The tip credit is a policy that allows businesses to pay employees below minimum wage so long as the workers make enough in tips to at least close the gap.
[RELATED: Minimum Wage in Maine Set to Rise to $15.10 Per Hour]
Maine’s minimum hourly wage has been pegged to the broader economy since 2016, the result of statewide referendum approved nine years ago.
Although this referendum also eliminated the state’s tip wage, it was quickly reinstated by lawmakers and former Gov. Paul LePage (R) in 2017.
Because the cost of living has shot up by 3.1 percent since this same time last year, Maine’s minimum wage will be increasing accordingly, rising by 45 cents from the current rate of $14.65.
Also accompanying this change is the increase the minimum salary threshold at which salaried workers are exempt from overtime laws. Beginning on January 1, this threshold will be raised to $871.16 per week, or $45,300.32 per year.
This, however, is not the only factor contributing to overtime eligibility, so someone earning more than this may still be eligible to receive overtime compensation.
