Gov. Janet Mills (D) signed a bill into law Friday requiring businesses with more than ten employees to include a prospective range of pay when posting a job listing.
Under this law, businesses will also be required to disclose, at an employee’s request, the range of pay for their position. A record of each employee’s position and pay history must be maintained for the duration of employment plus three years.
Just over $81,000 was appropriated from the state’s General Fund for the 2026-27 fiscal year to cover the costs associated with enforcing this new measure.
Lawmakers on the Labor Committee were divided along partisan lines over the proposal, with all Democrats supporting the measure and all Republicans opposing it.
This same party-line split again manifested itself in votes taken on the floor of the House and Senate.
In testimony offered early last year, bill sponsor Rep. Amy Roeder (D-Bangor) suggested that the measure would be beneficial for both employers and employees.
“By sharing a range of pay, employers are able to set expectations and better attract a pool of applicants that is suitable for the open position,” Rep. Roeder said. “Prospective employees will have the information up front that they need before making the lengthy decision to apply for the open position.”
“Current employees,” she added, “will have the option of knowing how others in their position are compensated, thus contributing to a conversation of pay parity in our workplaces.”
Click Here to Read Rep. Roeder’s Full Testimony
The Maine Policy Institute, a nonpartisan nonprofit think tank, testified in opposition to the measure, arguing that it may “inadvertently harm job seekers” and would place an excessive burden on small businesses.
“The best way to ensure fair pay is not through government mandates but by fostering a competitive labor market where employers compete for talent,” the think tank said. “Workers in Maine deserve the opportunity to negotiate their compensation based on skills, experience, and market conditions—not constrained by rigid government-imposed requirements.”
“Rather than imposing costly mandates on Maine businesses, policymakers should consider alternative strategies that empower workers and promote pay equity,” the Maine Policy Institute said, “such as encouraging competition in the market to disincentivize deceptive practices or incentivize transparency, rather than mandate it.”
Click Here to Read the Maine Policy Institute’s Full Testimony
Now that it has been signed into law, LD 54 will take effect 90 days out from the Legislature’s adjournment for the session, a date which will land in late July.
Click Here for More Information on LD 54
Disclaimer: The Maine Wire is a project of the Maine Policy Institute.
I think this is fair, employers know what other employers are paying for the same level job so employees should as well when they negotiate their pay.
It is so hard to be a small business in Maine. What I pay an employee is no ones business but mine and the employee, period.
More verification she does not support s.all business. It is gross.
Small business, especially small businesses in Maine, need less regulation not more. I don’t agree with this at all.