Reminder of Overtime Changes as of January 1

As of January 1, Maine’s minimum wage will increase from $11 to $12/hour.  That means the state minimum salary for exemption from overtime eligibility will increase from $33,000 to $36,000 per year, which translates to a minimum salary of $692.31 per week.   This is the amount employees in Maine will have to be paid to meet the salary basis test for an exempt employee.  Also as of January 1, the new federal rules on overtime eligibility become effective and the minimum salary for exemption from overtime eligibility rises from $23,660 to $35,568 per year, which translates to a minimum salary of $684 per week.  Since Maine’s salary threshold for exemption from overtime eligibility will be higher than the federal level after January 1, in order for an employee in Maine to be exempt, they have to be paid at least the higher state rate ($36,000/year).  Also remember that the position still has to meet the job duties test for the employee to be exempt.

 

Anne-Marie L. Storey, Attorney at Law, Rudman Winchell
Anne-Marie Storey, Esq
Rudman Winchell
207-947-4501