Introduction to employment laws in Maine
Overview
Maine has a robust set of statutes that govern various aspects of the employer-employee relationship, from hiring practices to workplace policies. State-specific labor laws include wage and hour regulations, safety standards, and anti-discrimination statutes.
For any business looking to hire in Maine, it’s crucial to have a solid understanding of the state’s employment laws and regulations. Staying compliant with these regulations is not only important for avoiding legal issues but also for fostering a fair and equitable work environment.
Employing in Maine – Key employment laws and practices
Standard work hours
Maine does not have a legal definition for full-time employment, but it is generally considered to be 30 to 40 hours per week. As per the federal Fair Labor Standards Act (FLSA), overtime rules apply when non-exempt employees work beyond 40 hours in a workweek.
Exempt employees earning above the threshold of $796.16 per week or performing executive, managerial, or professional duties may not be entitled to overtime pay. The exemption threshold is subject to change as it is currently under review at the federal level.
Minimum wage and overtime
The current minimum wage for private sector employees in Maine is $14.15 per hour, considerably higher than the federal minimum wage.
As for overtime, non-exempt employees working over 40 hours in a workweek are entitled to 1.5 times their regular pay rate. It’s important to note that certain roles may be exempt from this provision.
Insurance and benefits
Maine has specific regulations regarding the provision of various benefits. For instance, Maine offers healthcare continuation coverage obligations for employers with fewer than 20 employees.
Employers must also provide reasonable accommodations for pregnancy or pregnancy-related conditions unless it imposes an undue hardship on their operations.
Insurance type | Provisions |
Maine mini-COBRA | Provided to employees, continuation coverage for employers with greater than 20 employees; otherwise, coverage beyond that mandated by the Affordable Care Act not required |
Maine Act to Protect Pregnant Workers | Various accommodations unless causing undue hardship |
Workers’ compensation insurance | Required |
Unemployment insurance | Paid on the first $12,000 in gross wages an employer pays to an individual in a calendar year |
Meal and rest periods
In Maine, the law requires employers to provide employees with a break of at least 30 minutes for every six consecutive hours worked. This is in compliance with the Maine Meal Rest Period Law. However, if the nature of work allows employees to take intermittent breaks equal to 30 minutes during the course of a shift, a formal break may not be necessary.
This law applies to all employers, regardless of the size of their business or the number of employees they have. Note that the law does not necessarily require these breaks to be paid.
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Anti-discrimination laws
Maine has comprehensive anti-discrimination laws that strongly protect workers’ rights. The Maine Human Rights Act is particularly proactive, prohibiting discrimination based on multiple protected characteristics, such as race, color, religion, national origin, sex (including pregnancy and related medical conditions), sexual orientation, familial status, gender identity, ancestry, age, physical or mental disability, status as a domestic violence victim and previous assertion of a Workers’ Compensation claim or right.
Maine law also forbids retaliation against individuals who have either filed a charge of discrimination, participated in a discrimination proceeding, or opposed a violation of the MHRA.
The state enforces stricter sexual harassment laws than federal guidelines, requiring employers with 15 or more employees to provide sexual harassment training to new employees and managerial staff.
Leave policies
Leave policies in Maine are quite extensive and cover various situations that an employee might encounter.
Under Maine’s Family Medical Leave Act, qualifying employers are required to provide up to 10 weeks of unpaid leave in two years for reasons such as the birth of a child, serious illness of the employee or a family member, organ donation, and certain situations related to military duty.
Maine’s Earned Paid Leave law mandates that individuals working in Maine establishments with 10 or more employees receive time off at a rate of 1 hour per 40 hours worked. A maximum of 40 hours of leave may be received in a given year, and it may be used for any reason or all at once within a year. Up to the full amount of 40 hours of unused time may be rolled over to the next year.
Leave type | Description |
Vacation leave | Not mandated by the state. Usually defined by company policy |
Sick leave | Not required by Maine law. But if provided, accrued leave must be treated like wages |
Parental/maternity leave | Covered under MFMLA. Up to 10 weeks of unpaid leave in 2 years |
Earned paid leave | Covered by Maine law. Up to 40 hours of paid leave accruable within a year-long period |
Bereavement leave | Not governed by Maine law. Defined by company policy |
Jury duty | Paid leave required for full-time employees |
Military leave | Federal laws require unpaid leave and job protection |
Termination laws
In Maine, the termination laws are guided by the principle of “at-will employment.” This means that unless there is a written contract stating otherwise, either party can terminate employment at any time, for any reason. However, an employer cannot terminate an employee for discriminatory reasons or in retaliation for exercising their legal rights.
While severance pay is not mandated under Maine law, if it is promised in an employment contract or company policy, it must be honored. Additionally, and important to note, if an employer closes or relocates an industrial or commercial facility that has employed 100 or more employees in the preceding 12 months, it must pay severance to each affected employee. Severance for each employee must be paid at a rate of one week’s pay for each year the employee was employed at the facility.
Employers are also required to provide final wages no later than the next regular payday following termination
Easily onboard employees in Maine?
Safety and health
Maine has several regulations that address the safety and health of its workers.
Workplace safety and health regulations in Maine are enforced by both the U.S. Department of Labor/OSHA for private-sector workplaces and the Maine Department of Labor/Bureau of Labor Standards for public-sector workplaces, such as state, county, and municipal agencies.
These regulations require employers to provide a safe and healthy work environment, comply with OSHA standards, and inform employees of their rights and responsibilities. These regulations also include mandatory safety training, adherence to safe work practices, reporting injuries and illnesses promptly, and maintaining a safe and healthy workplace environment.
Taxes in Maine
Just like every other state in the U.S., Maine has specific tax requirements for employers and employees. These include federal income taxes, state income taxes, and FICA taxes for Social Security and Medicare. Employers are also liable for Federal Unemployment Tax Act (FUTA) taxes and State Unemployment Insurance (SUI) taxes.
Tax type | Rate | Employee contribution | Employer contribution |
Federal income tax | Varies | Yes | No |
State income tax | 5.8% – 7.15%, depending on income | Yes | No |
FICA Social Security | 6.2% | Yes | 6.2% |
FICA Medicare | 1.45% | Yes | 1.45% |
FUTA | 0.6% up to $7,000 per employee annually | No | Yes |
SUI | Varies based on experience rating | No | Yes |
Managing Maine employees with an Employer of Record (EOR)
Looking to hire in Maine? For businesses, understanding the complexities of Maine employment laws is crucial. Managing legal risks and maintaining HR compliance can be a daunting task, especially when dealing with both state and federal laws.
Multiplier’s Employer of Record (EOR) solution enables companies to employ full-time workers in the U.S. without setting up local entities. And our global payroll platform lets you pay your U.S. workforce on time while taking care of local taxes, contributions, and withholdings.
Book a demo today to see how Multiplier can help you streamline your HR and compliance processes.
FAQs
In Maine, full-time employment usually ranges between 30 to 40 hours per week. However, there isn’t a legal definition for this term in the state. The employer generally sets the standard based on the industry practice or company policy.
Under the federal Fair Labor Standards Act and Maine employment laws, non-exempt employees who work more than 40 hours a week are entitled to overtime pay of 1.5x their regular pay rate. The salary threshold for exemption in Maine is currently $796.16 per week, higher than the federal minimum.
As per Maine HR compliance guidelines, the minimum state wage for private sector employees is currently $14.15 per hour.
Maine law mandates that employees must be paid at least once every 16 days. However, certain domains and roles are exempt.
Various laws protect Maine employees from workplace discrimination, including the Maine Human Rights Act (MHRA), which prohibits discrimination based on protected characteristics such as race, color, religion, national origin, sex (including pregnancy and related medical conditions), sexual orientation, familial status, gender identity, gender expression, ancestry, age (any age), physical or mental disability, status as a domestic violence victim, and a previous assertion of a Workers’ Compensation claim or right. Compliance with MHRA is a critical aspect of Maine HR compliance.
