Minimum Wage in Portland, Maine—What Employers Need to Know

25
Feb

From January 1, 2019, through June 30, 2019, employers in the City of Portland, Maine must pay their employees the state minimum wage of $11.00 per hour.

In accordance with the City of Portland’s Minimum Wage Ordinance, whenever the state minimum wage is equal to or higher than the city minimum wage, employers must pay their employees the state wage.

We recommend that Portland employers make sure the state Minimum Wage notice is visible to all employees rather than July 1, 2018, City of Portland notice, which is no longer in effect.

What’s Next for Portland, Maine?

Minimum Wage Increase

The City of Portland’s minimum wage will be on the rise again in July, making it higher than the state minimum wage. This means that employers will once again be required to post a new City of Portland Minimum Wage notice in their workplaces.

Starting July 1, 2019, employers who operate a business in the City of Portland are required to pay a minimum wage of $11.11 per hour to employees who perform work within the municipal limits of the city. This requirement applies to full-time, part-time, temporary, and seasonal workers, with a few exceptions (for example cab drivers and commercial fishermen).

In addition, on July 1, 2019, Portland employers must pay a direct wage of at least $5.50 cash per hour to tipped/service employees. If a service employee’s direct wages plus tips don’t equal or exceed the $11.11 per hour minimum wage, the employer is required to make up the difference.

The City of Portland has already released the Minimum Wage notice effective 7/1/19; however, employers should continue to pay the state wage until the new city minimum wage goes into effect.

Further Requirements for Employers

The City of Portland has updated the Minimum Wage FAQs with employer requirements related to the upcoming 7/1/19 increase.

In particular, question 8—”What notice of this change must I, as an employer, give to my employees?”—states that employers must:

  • Post a copy of the Minimum Wage notice, which outlines the changes to the minimum wage and provides a summary of employees’ rights under the law, in a conspicuous place at each place of employment
  • Post a copy of the City of Portland Minimum Wage Ordinance
  • Provide employees with written notice of their rights and responsibilities under the ordinance with the first paycheck following July 1, 2019
  • Let employees know in advance of their first paycheck after July 1, 2019, if the employer is electing to use the tip credit and pay service employees $5.50 per hour as a direct/cash payment

We Can Keep You in Compliance

If you order our City/County Poster 1-Year Plan, you will automatically receive the updated Portland, Maine poster, available now. And because we provide free poster updates for mandatory changes, no matter how many occur during the plan year, you can always count on Poster Compliance Center to keep your business in compliance!