Minimum wage workers in Maine will receive a pay increase to $10 per hour starting on January 1. This is a scheduled increase mandated by minimum-wage legislation enacted after a voter referendum in 2016. The minimum wage will continue to increase to $12 per hour by 2020 and then will increase yearly after 2020 to keep pace with inflation. As we previously reported, there is an exception to the minimum wage increase for tipped workers and some lawmakers want to make further changes to the law.
Maine’s minimum wage is in the middle of the pack both nationally and in New England. New Hampshire’s minimum wage is pegged to the federal minimum wage of $7.25 per hour while Massachusetts’ minimum wage is $11 per hour.
Unemployment is relatively low nationally and in Maine. That low unemployment rate also creates some upward pressure on wages. With fewer workers to choose from, employers have to offer higher wages to attract applicants. This is a particular issue in the hospitality industry in southern Maine. “I think that for most of the industry, the labor shortage is so acute that people are paying above minimum wage anyhow,” said Steve Hewins, president and CEO of the Maine Restaurant Association and Maine Innkeepers Association.