New Employment Laws in Maine: What HR Pros Need to Know

While Maine may be famous for its lobster and lighthouses, it’s also leading the way with changes to its 2024 labor laws, the most significant being the increase of the minimum wage to $14.15 per hour. This reflects Maine’s dedication to workers’ rights and benefits.

Applying these newest state regulations will help you boost your employees’ wellbeing and job stability, contributing to a productive, positive workplace.

Keep reading to get all the most important details for Maine’s new and updated 2024 labor laws.

At BambooHR, we know how hard it can be to keep up with changing labor laws. Our easy-to-use HR software helps you manage these changes, keeping your business running smoothly and helping your employees feel appreciated. Find out how BambooHR can simplify compliance and set your people free to do great work by scheduling a free demo.

Maine Labor Statistics

• Portland, Maine, has one of the highest numbers of restaurants per capita in the US.
• Maine produces 90% of the nation’s lobster supply.
• $93.1 billion GDP
• $61,708 average income
• Top industries include:
  • Forest products
  • Life sciences
  • Aquaculture
  • Food/Agriculture
  • Outdoor recreation
  • Clean energy
• Labor force of 692,800 people
• 3.4% unemployment rate (US rate 4%)
• Average house sale price is $353,000.

5 Maine Labor Laws Employers Need to Know

Agricultural Labor Laws

While Governor Janet T. Mills decided not to approve certain changes to the laws that affect farm workers in 2024, including a bill that would have allowed farm workers to join unions and negotiate for better working conditions, here are the current agricultural labor laws:

Wages and Overtime

• Minimum Wage: Most farm workers don't have to be paid the state minimum wage.​
• Overtime: Farm workers don't get paid extra for overtime hours. This includes those involved in tasks like processing and packing farm products.

Health and Safety

• Workers’ Compensation: Farm workers are covered if they get hurt on the job, but some workers and employers have limited coverage.
• Field Sanitation and Pesticide Safety: There are rules in place to keep farm workers safe from dirty conditions and harmful pesticides.

Rights and Protections

• Union and Collective Bargaining Rights: Farm workers in Maine don't have specific state rights to protect them from the potential consequences of joining unions or negotiating with employers.

Seasonal and Migrant Workers

• Housing and Transportation: As an employer, make sure you follow the rules for the housing and transportation you provide to migrant and seasonal workers, so your employees are safe and healthy.​

And though not yet in effect, here are the new proposed agricultural labor laws to prepare for:

• To better align with the state minimum wage for other workers, agricultural workers should be paid at least $14.15 per hour.
• Minimum wage for agricultural workers should include annual cost-of-living increases starting January 1, 2025.
• Employers will be required to keep accurate records of hours worked and wages paid to employees.
• Records will need to be kept for at least three years.
• Employers will need to provide each employee with a statement of wages.

Child Labor

Here are the key points on current labor laws for minors:

Age Restrictions

• 14- to 17-year-olds can work in most businesses but not in hazardous jobs.

Work Permits

• These are required for minors under 16.
• Permits must be approved by the Bureau of Labor Standards before work can begin.

Work Hours

14- and 15-Year-Olds

• School Year: Up to 3 hours on school days, 18 hours per week
• Summer: Up to 8 hours per day, 40 hours per week

16- and 17-Year-Olds

• School Year: Up to 6 hours on school days, 24 hours per week
• Summer: Up to 10 hours per day, 50 hours per week

For the complete regulations, see the Maine Department of Labor's guide.

Family and Medical Leave Act

On July 11, 2023, Governor Mills approved a plan to create a paid family and medical leave program, making Maine the thirteenth state to do so.

Starting in 2026, eligible workers can take up to 12 weeks of paid leave for family or medical reasons, such as illness, caring for a relative, or the birth of a child. The Maine Department of Labor is in charge of rolling out this program.

Who Pays and How Much?

Starting January 1, 2025, contributions to the Paid Family and Medical Leave (PFML) fund will begin. Both employers and employees will chip in. Even though benefits won't be available until May 2026, this early start is to make sure there's enough money to support the program when it goes live.

Contribution Rate:

• Large Employers (15+ employees): 1% of wages; up to half can be deducted from employees' pay.
• Small Employers (<15 employees): 0.5% of wages; the entire amount can be deducted from employees' pay.

You can also choose to pay for your employee’s share of contributions if you wish, which is a great incentive to offer as a benefit to your employees.

For more detailed information, be sure to visit the Maine Department of Labor's PFML page.

Minimum Wage

As of January 1, 2024, the minimum wage in Maine is $14.15 per hour. This includes all businesses in Maine with at least one employee, including public and private employers, regardless of their profit or size.

Additionally, there are specific wage requirements for service employees. A service employee is someone who regularly receives more than $179 a month in tips. As of January 1, 2024, employers must pay a service wage of at least $7.08 per hour. If the employee’s wage combined with earned tips doesn’t average the state-required minimum wage on a weekly basis, the employer needs to pay the difference.

If your employees work more than 40 hours in a week, they must be paid overtime at a rate at least 1.5 times their regular pay, unless they are a specific exception. Employers can choose whether or not to allow overtime, but if you do and your employees work overtime, you have to pay it according to Maine’s laws.

These changes might require you to update employment contracts and adjust payroll systems for all eligible employees to ensure compliance.

Pay Transparency

A new proposed bill, introduced March 2023, is currently being considered to improve pay transparency and make sure employers keep better records of pay history. Although it's not a law yet, as of June 2024, it’s being discussed.

Here’s what the bill proposes:

• Employers with 10 or more employees must include the pay range in job ads.
• Employers with fewer than 10 employees must share the pay range if an applicant asks.
• All employers must provide the pay range for a current employee’s job if asked and keep records of job titles and pay history during employment for three years after they leave.

For the latest updates, you can check the Maine Legislature's website.

It's important for HR to update job postings to comply with these new requirements. Compliance with these regulations not only meets legal requirements but also promotes an open and positive workplace environment.