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SMALL BUSINESS NEWS

21 Nov 2016

 

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Maine Voted To Increase Minimum Wage

This November Main also placed an initiative on the ballot asking voters to decide whether or not they want to increase the minimum wage and they yes.

Hence, starting 1 January 2017 the minimum wage in Maine will increase from $7.50 to $9.00 per hour statewide. It will increase by $1.00 each year after that until it is $12.00 in 2020 as follows.

 

 

-$9.00                    - 1 January 2017

-$10.00                  - 1 January 2018

-$11.00                  - 1 January 2019

-$12.00                  - 1 January 2020

After 1 January 2020 future increases will be tied to the Consumer Price Index (CPI).

An employer may consider tips as part of the wages of a service employee, but such a tip credit may not exceed 50% of the minimum hourly wage established in this section.

Starting January 1, 2017, the minimum cash wage paid directly to a tipped service employee may not be less than

$5.00 per hour, and the tip credit may not exceed the difference between the minimum cash wage paid directly to a tipped service employee and the minimum hourly wage established under subsection 1.

Starting January 1, 2018, and on each January 1st thereafter, the minimum cash wage paid directly to a tipped service employee must be increased by an additional $1.00 per hour until it reaches the same amount as the annually adjusted minimum hourly wage established under subsection 1, except that if the minimum cash wage paid directly to a tipped service employee is less than $1.00 less than the annually adjusted minimum hourly wage, it must be increased by that lesser amount.

An employer who elects to use the tip credit, until it is eliminated under this subsection, must inform the affected employee in advance and must be able to show that the employee receives at least the minimum hourly wage when direct wages and the tip credit are combined.

Upon a satisfactory showing by the employee or the employee's representative that the actual tips received were less than the tip credit, the employer shall increase the direct wages by the difference.

The tips received by a service employee become the property of the employee and may not be shared with the employer. .          .

Tips that are automatically included in the customer's bill or that are charged to a credit card must be treated like tips given to the service employee. A tip that is charged to a credit card must be paid by the employer to the employee by the next regular payday and may not be held while the employer is awaiting reimbursement from a credit card company.

See other States minimum wages.

Sources:
Maine Ballot Initiative [Question 4]


By Bill Williams

 

 

 

 

 

 

 

 

 

 
 

 

  
 

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