Maine’s Minimum Wage to Increase in 2023

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Effective January 1, 2023, the state minimum wage will increase from $12.75 to $13.80 per hour, based on data recently made available by the U.S. Department of Labor’s Bureau of Labor Statistics. Maine law, amended by citizen’s referendum in 2016, requires annual adjustments to the minimum wage based on the cost-of- living index (CPI-W) for the Northeast Region.

In addition to the minimum wage, the new “tip wage,” or service employee minimum wage, in 2023 will be $6.90 per hour. This means that service employees must receive at least a direct cash wage of $6.90 per hour from the employer. The employer must be able to show that the employee receives at least the minimum wage of

Second Round for Forest Recovery

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Grants totaling $14 million have been recently awarded to 19 Maine forestry companies, in the final round of the Forest Recovery Initiative of the Maine Jobs & Recovery Plan.

The Forest Recovery Initiative aimed to support Maine’s forest products industry and the people it employs. The funds support jobs in rural Maine, and strengthen the state’s economy. The first round of awards provided financial relief to 219 forest products industry businesses that experienced negative impacts from the pandemic, and help them sustain the viability of their business.

Awards made through the second and final round of the program will support forwardlooking industry projects that address new market demands, provide new sustainable products, or otherwise advance the long-term stability of the forestry industry.

“Maine’s forest products industry is not only a key part of our state’s heritage, but also a cornerstone of our economic future. These grant awards will help Maine forestry companies on the cutting edge compete on the world stage,” said the governor. “My administration will continue to work to ensure that our forest products sector remains strong for the years to come.”

“The Forest Recovery Initiative has already helped hundreds of Maine forestry businesses navigate the lasting impacts of the pandemic. The administration is investing directly in the future of the sector and new uses for Maine wood fiber,” said Commissioner Amanda Beal of the Department of Agriculture, Conservation and Forestry, and Commissioner Heather Johnson of the Department of Economic and Community Development.

$13.80 per hour when the direct wage and tips are combined at the end of the week.

The minimum salary threshold for exempting a worker from overtime pay is also based on the minimum wage. Starting January 1, 2023, the new minimum salary threshold is $796.17 per week, or $41,401 per year. This is only one of the factors used in determining whether a worker is exempt from overtime pay under federal or state law. An individual can earn more than the minimum salary threshold and still be eligible for overtime. The duties of each worker must be considered as part of this analysis.

Interpretive GuidanceVacation Payout

than 10 employees in the usual and regular course of business for more than 120 days in any calendar year shall permit each employee to earn paid leave based on the employee’s base pay. An employee is entitled to earn one hour of paid leave from a single employer for every 40 hours worked, up to 40 hours in one year of employment. Accrual of leave begins at the start of employment, but the employer is not required to permit use of the leave before the employee has been employed by that employer for 120 days during a oneyear period.

or within two weeks, whichever is earlier.

This may include the payment of all unused paid vacation accrued after January 1, 2023. This will also include all accrued Earned Paid Leave if established in company policy or in practice.

Unfair Agreement - Employers cannot require that an employee pay for losses such as broken merchandise, bad checks, or bills not paid by customers, nor for special uniforms and certain tools of the trade.

The program is one of three initiatives of the Jobs Plan that supports the recovery of Maine’s heritage industries – forestry, fishing and farming – from impacts of the COVID-19 pandemic. To date, the plan has awarded approximately $41 million in recovery funds to 392 businesses in these heritage sectors across all 16 counties in Maine.

The Forest Recovery Initiative is administered by the Maine Technology Institute, which accepted applications for the program in September and October of 2022. 62 applications were received prior to the deadline seeking $77 million in funding. After reviewing and scoring the proposals in a competitive process, 19 projects were awarded funding. The awards span projects across ten counties, from York to Aroostook; the funding will leverage more than $625 million in private sector matching funds, a 44:1 ratio of private to public funding.

The Maine Jobs & Recovery Plan invests nearly $1 billion in Federal American Rescue

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Beginning January 1, 2023, all unused paid vacation time that had accrued must be paid to the employee on their next regularly scheduled pay day after employment ends. This law does not apply to employers with less than 11 employees or a public employer. If employees are covered by a collective bargaining agreement that addresses payment of vacation pay at the end of employment, the collective bargaining agreement will determine if the unused accrued vacation pay is paid out at the end of employment.

This law change raised several interpretive questions about how the amended law interacts with Maine’s existing earned paid leave law. To assist employers and employees, the Maine Department of Labor published interpretive guidance addressing the interaction of the laws for vacation payout upon cessation of employment and earned paid leave.

Other General Reminders

Earned Paid Leave - An employer that employs more

Time of Payment - Employees must be paid in full at least every 16 days. Employees must be notified of any decrease in wages or salary at least one day prior to the change.

Payment of Wages - Employees who leave a job must be paid in full on the next payday www.haminsures.com

Rest Breaks - Most employees must be offered a 30 consecutive minute paid or unpaid rest break after 6 hours of work.

For more information on the new laws going into effect, visit www.maine.gov/labor/ posters, call 207-623-7900 or email bls.mdol@maine.gov.

STATEWIDEThe New Year represents a fresh start, and is the perfect time to invest in one’s health. However, many may be unsure what resolutions will have the biggest impact. Doctors say that the easy, tangible actions you take are some of the most important.

“Many people kick off the start of each new year with big-picture health resolutions,” says Jack Resneck, Jr., M.D., president of the American

Medical Association (AMA).

“The good news is that small, positive health choices made right now can have long-lasting effects.”

Want to get started today?

Here are the ten resolutions the AMA recommends this year:

1. Exercise is essential for physical and mental health, so get moving today. A good rule of thumb for adults is at least 150 minutes a week of moderateintensity activity, or 75 minutes a week of vigorous-intensity ac-