The Maine Department of Labor recently announced that the state minimum wage will increase from $12 to $12.15 per hour as of January 1, 2021. The increase is based on the Maine law passed several years ago that provides that annual adjustments to minimum wage as of 2021 are to be based on the cost of living index. The same indexing formula will be applied each year. This means that as of January 1, 2021, the new Maine minimum salary threshold is $700.97 per week, or $36,450 per year.
In addition, the service employee minimum wage (“tip wage”), effective January 1, 2021 will be $6.08 per hour. This is the minimum cash wage a service employee receives from the employer; the combined wage and tips at the end of the week must equal or exceed the new minimum wage of $12.15 per hour.