Maine's Minimum Wage to Increase to $15.70 Per Hour in 2027

The state minimum wage will increase from $15.10 to $15.70per hour, based on data recently made available by the U.S. Department of Labor's Bureau of Labor Statistics, on January 1st. MDOL is required under a 2016 voter mandated law that the Maine AFL-CIO supported to make annual adjustments to the minimum wage based on the cost-of-living index (CPI-W) for the Northeast Region. Between August 2025 and August 2026, there was a 4.1percent increase in the CPI-W.

According to the U.S. Department of Labor’s Bureau of Labor Statistics Current Population Survey for 2025, there were 28,000 hourly workers who were paid less than $15.00 per hour. These workers represent about four percent of all wage and salary workers (both paid at hourly rates and not paid at hourly rates) and about eight percent of wage and salary workers who are paid at hourly rates.

Agricultural workers in Maine are also entitled to the state minimum wage, after the Legislature enacted and Governor Mills signed "An Act to Establish a State Minimum Hourly Wage for Agricultural Workers" in 2025. The Maine AFL-CIO lobbied hard to pass the law finally making farmworkers eligible for the state minimum wage.

The "tip wage," or service employee minimum wage, will increase from $7.55 to $7.85per hour. This means that service employees must receive a direct cash wage of at least $7.85per hour from the employer. The employer must be able to show that the employee receives at least the minimum wage of $15.70per hour when the direct wage and tips are combined at the end of the week. The amount of tips necessary to qualify as a service employee will increase from $191 to $199per month.

The minimum salary threshold for exempting a worker from overtime pay must exceed 3,000 times the State's minimum wage or the annualized rate established by the U.S. Department of Labor, whichever is higher. Starting January 1, 2027, the new minimum salary threshold for salaried workers exempt from overtime will be $905.79per week, or $47,101.08 per year. This is only one of the factors used in determining whether a worker is exempt from overtime pay under federal or state law. An individual can earn more than the minimum salary threshold and still be eligible for overtime. The duties of each worker must be considered as part of this analysis.