The Cash Minimum Wage for Tipped Employees Will Rise from $3.75 to $5.00 per hour Effective on January 7, 2017

By Rudman Winchell Attorney Frank T. McGuire

Referendum Question 4, approved by Maine voters in November, raised the Maine minimum wage to $9.00 per hour, effective on January 7, 2017.  It also enacted a series of changes to the tip credit and minimum cash wages to tipped employees, the first of which will also go into effect on January 7, 2017.

As of January 7, 2017, the minimum cash wage the employer must pay to tipped employees in Maine will rise to $5.00 per hour.  The “tip credit” may not exceed the difference between that amount and the minimum wage.  For 2017, a tip credit of up to $4.00 per hour may be claimed against the minimum wage of $9.00 per hour.

The Legislature is expected to review the topics of minimum wage increases and tip credit changes, but the referendum result will take effect in the meantime.

 For answers to questions concerning wage and salary requirements, please contact one of Rudman Winchell’s experienced labor and employment law attorneys.


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