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As a small business owner in the Pine Tree State, we know you want to stay on top of recent increases to Maine’s minimum wage, and that’s why we put together this quick guide as a starting point.
What is the minimum wage in Maine 2024?
The minimum wage in Maine is increasing from $13.80 per hour to $14.15 per hour effective January 1, 2024, which is $6.90 more than the federal minimum wage of $7.25. For tipped employees, employers can take a tip credit of up to $7.08 and must pay tipped employees a cash wage of $7.08 per hour. Note that an employee’s tips plus cash wage should equal at least $14.15.
How should small business owners prepare for minimum wage increases?
In 2016, Maine voters approved a measure to gradually increase the minimum wage in relation to the cost of living. According to the legislation, on January 1, 2021, and each January 1 thereafter, the minimum hourly wage must be increased according to the increase in the cost of living.
Here are some other steps you can take to make sure your business is ready for the Maine minimum wage increase and more:
- Reevaluate your staffing: Take a look at your hourly, weekly, and monthly sales to determine if your current staffing levels are appropriate. For example, perhaps you only need to hire temporary employees during your busy seasons instead of taking on more full-time regular staff.
- Hire the best: Hiring the right people is always important, but doubly so when you operate a small business. So take your time and cast a wide net when recruiting new employees. Once you have your team in place, make employee retention a priority by offering employee benefits and a path to growth and development in order to make your business a more attractive place to work.
- Upgrade your technology: When you avoid complicated, time-consuming aspects of management with tools like automatic payroll, you can spend more time focusing on issues like staffing and growing your business. Square Payroll software includes custom payroll features, which make running your unique business needs a breeze, and offers small business pricing, which helps you remain under budget.
- Set yourself up for success: : One of the first steps when starting your own business and hiring employees is to get a free EIN (or Employer Identification Number), which you need for tax purposes to pay your employees.
While these are helpful guidelines to follow, make sure your business is prepared and stays in compliance by discussing Maine minimum wage laws with your accountant and lawyer.
