Maine's state minimum wage rose from $13.80 to $14.15 an hour this week thanks to a state law that requires the minimum wage to be annually adjusted for inflation. The law, which is the result of a 2016 referendum backed by the Maine AFL-CIO, also increases the state wage for tipped workers to $7.08 per hour.
According to the Maine Center for Economic Policy, there were about 68,000 hourly workers in Maine earning less than $14.15 and an additional 59,000 employees earning just over the minimum wage who likely will see a boost in pay because of the competitive labor market. In total, about 127,000 Maine workers will be affected by the increase, about 20,000 fewer workers than were impacted by last year's increase.
“The number of workers impacted — around one in five payroll employees in the state — is smaller than previous years because Maine’s stronger labor market has helped push wages up for more workers,” wrote MECEP policy analyst James Myall. "Still, the fact that 127,000 Mainers are benefitting from this year’s increase is a sign the policy is working as intended while the harmful impacts predicted by opponents — namely higher unemployment — have not borne out in practice. Six years after the initial implementation of the policy, Maine’s unemployment rate remains below the nation’s and is at near historic lows."
As we told the Portland Press Herald, the minimum wage is really the floor, so when we raise it, it lifts everybody. However, $14.15 is still far lower than the $24.50 per hour necessary to keep up with the cost of living in Maine. Much more work needs to be done to raise wages, whether it's through collective bargaining, public policy or collective action.