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Pine State News

Thursday, April 3, 2025

Maine minimum wage increase confirmed for 2025; concerns over paid leave rules raised

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Mike Donohue Senior Media Manager – Northeast | Official Website

Mike Donohue Senior Media Manager – Northeast | Official Website

Maine's minimum wage is set to rise to $14.65 in 2025, according to data from the U.S. Bureau of Labor Statistics. This increase comes as part of the state's practice of tying its minimum wage to annual increases in the Consumer Price Index for Urban Clerical Workers in the Northeast Region. The CPI-W for this region rose by 3.6% from August 2023 to August 2024.

The federal overtime payment salary threshold for 2025 is set at $58,656 annually, equating to $1,128 weekly. The National Federation of Independent Business (NFIB) has filed a lawsuit to challenge this regulation.

In the cities of Portland and Rockland, where the municipal minimum wage is $15, the rate is connected to the general CPI-U for the Northeast, which increased by 3.4%. Consequently, the expected minimum wage for these cities in 2025 will be $15.50.

Revised draft rules for implementing the Paid Family & Medical Leave law in Maine continue to present challenges, particularly for small businesses. The NFIB has highlighted several areas needing improvement. In its view, provisions such as "Undue Hardship," "Premiums," "Job Protection," and "Intermittent Leave" require refinements to better serve small employers, simplifying processes and recognizing the impacts on employers with fewer than 15 workers.

The Maine FLMA mandates employers with at least 15 workers to provide 10 weeks of leave every two years, but the PFML law will require 12 weeks of paid leave annually. This law, applicable to every employer with at least one employee, stipulates a 1% tax on wages from January 1, 2025, that is split between employees and employers. Employers with fewer than 15 workers are exempt from the 0.5% employer share. Paid leave benefits will commence on May 1, 2026.

Public feedback on these revised rules is invited until September 30. Further information is available on the Maine government’s website.

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