An Act To Ensure Fair Wages
Maine Legislature, Session 123, LD 1697
Committee: Labor
Sponsors: STRIMLING, HARLOW, TUTTLE, SULLIV AN, BURNS, CLARK, CRESSEY, HASKELL, JACKSON, RAND
Amends: 26 MRSA §663, 26 MRSA §664, 26 MRSA §670, 26 MRSA §671

Legislative Document 
No. 1697 
S.P.604 
March 23, 2007 
An Act To Ensure Fair Wages 
Reference to the Committee on Labor suggested and ordered printed. 
Presented by Senator STRIMLING of Cumberland. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Representative HARLOW of Portland, Representative TUTTLE of Sanford 
and Senator: SULLIV AN of York, Representatives: BURNS of Berwick, CLARK of 
Millinocket, CRESSEY of Cornish, DRISCOLL of\Vestbrook, HASKELL of Portland, 
JACKSON of Allagash, RAND of Portland. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 26 MRS A §603, sub-§3, ~, as enacted by PL 1999, c. 750, § 1, is 
amended to read: 
D. 
An individual exempt from the definition of employee in section 663, subsection 
3, paragraph A, B; C, F, G, I or J; 
Sec. 2. 26 MRSA §663, sub-§3, ~ 
is repealed. 
Sec. 3. 26 MRSA §663, sub-§3, ~, as repealed and replaced by PL 1979, c. 
516, § 1, is repealed. 
Sec. 4. 26 MRSA §664, sub-§l, as amended by PL 2005, c. 578, § 1, is further 
amended to read: 
1. Minimum wage. The minimum hourly wage is $6.50 per hour. Starting October 
1, 2006, the minimum hourly wage is $6.75 per hour. Starting October 1, 2007, the 
minimum hourly wage is $7.00 per hour. Starting October 1, 2008, the minimum hourly 
wage is $7.70 per hour. Starting October 1, 2009, the minimum hourly wage is $8.40 per 
hour. 
On September 30, 2009, and on September 30th of each year thereafter, the 
Department of Labor shall calculate an adjusted minimum wage rate to maintain 
employee purchasing power. The adjusted minimum wage must be calculated to the 
nearest cent using the Consumer Price Index for Urban Wage Earners and Clerical 
Workers, CPI-W, or a successor index, for the 12 months prior to each September 1st, as 
calculated by the United States Department of Labor. Each adjusted minimum wage rate 
so calculated takes effect January 1 st of the following year. 
If the highest federal 
minimum wage is increased in excess of the minimum wage in effect under this section, 
the minimum wage under this section is increased to the same amount, effective on the 
same date as the increase in the federal minimum wage, but in no case may the minimum 
wage exceed the minimum wage otherwise in effect under this section by more than $1 
per hour. 
Sec. 5. 26 MRSA §664, sub-§2, as enacted by PL 1995, c. 305, §I, is amended to 
read: 
2. Tip credit. An employer may consider tips as part of the wages of a service 
employee, but such a tip credit may not exceed 50% of the miAimum hourly wage 
established iA this seetioA $3 per hour. An employer who elects to use the tip credit must 
inform the affected employee in advance and must be able to show that the employee 
receives at least the minimum hourly wage when direct wages and the tip credit are 
combined. 
Upon a satisfactory showing by the employee or the employee's 
representative that the actual tips received were less than the tip credit, the employer shall 
increase the direct wages by the difference. 
Sec. 6. 26 MRSA §664, sub-§3, ~, as enacted by PL 1995, c. 305, § 1, IS 
repealed. 
Sec. 7. 26 MRSA §664, sub-§3, ~, as amended by PL 2001, c. 628, §1 and 
affected by §5, is repealed. 
Sec. 8. 26 MRSA §670, as amended by PL 1965, c. 410, §8, is further amended to 
read: 
§670. Employees' remedies 
Afly An employer sHall be ~ liable to the an employee or employees for the amount 
of unpaid minimum wages. Upon a judgment being rendered in favor of any employee er 
emplo~'ees, in any action brought to recover unpaid wages under this subchapter, such ~ 
judgment sfla.l.l must include, in addition to the unpaid wages adjudged to be due, an 
additional amount equal to such wages as liquidated damages, and costs of suit including 
II 
a reasonable attorney's fee fees and a civil penalty of not less than $1,000 nor more than 
$10,000, 90% of which civil penalty must be paid to the State. 
An employer is liable to an employee for discharging or in any other manner 
discriminating against any employee because the employee in any way invokes that 
employee's rights or the rights of another under this subchapter. Upon a judgment being 
rendered in favor of any employee or employees, in any action brought for retaliation 
under this subchapter, such a judgment must include, in addition to compensatory 
damages, costs of suit including reasonable attorney's fees and a civil penalty of not less 
than $1,000 nor more than $10,000, 90% of which civil penalty must be paid to the State. 
On October 1 st of each year, beginning on October 1, 2008, the minimum and 
maximum civil penalties under this section must be adjusted by the Department of Labor 
to reflect changes in the Consumer Price Index for Urban Wage Earners and Clerical 
Workers, CPI-W, or a successor index, for the 12 months prior to each September 1st, as 
calculated by the United States Department of Labor. 
Sec. 9. 26 MRSA §671, as amended by PL 1971, c. 620, §13, is further amended 
to read: 
§671. Penalties 
Afly An employer who violates this subchapter sfla.l.l must, upon conviction thereof, 
be punished by a fine of not less than $-W $1,000 nor more than ~ 
$10,000. Ten 
percent of any fine must be awarded to the employee injured by the violation. 
I 
Afly An employer, who discharges or in any other manner discriminates against any 
employee because stJclt the employee makes a complaiAt to tHe direetor Of to tHe eOl:lAty 
attofAey eOAcerniAg a yiolatioA of in any way invokes that employee's rights or the rights 
of another under this subchapter,..-sftall must be punished by a fine of not less than ~ 
$1,000 nor more than ~ 
$10,000. Ten percent of any fine must be awarded to the 
employee injured by the violation. 
On October 1 st of each year, beginning on October 1, 2008, the mInImum and 
maximum fines under this section must be adjusted by the Department of Labor to reflect 
changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers, 
CPI-W, or a successor index, for the 12 months prior to each September 1 st, as calculated 
by the United States Department of Labor. 
In the event of the violation of any of the provisions of this subchapter, the Attorney 
General may institute injunction proceedings in the Superior Court to enjoin further 
violation thereof. 
SUMMARY 
This bill increases the minimum wage to $7.70 per hour in 2008 and to $8.40 per 
hour in 2009. Each year after that, the minimum wage is adjusted based on changes in 
prices, so that the minimum hourly wage will retain its purchasing power. The price 
adjustment is based on the change in the Consumer Price Index. 
The bill also removes exemptions to the State's minimum wage and overtime laws. 
The bill also changes the tip credit to $3 per hour rather than 50% of the state minimum 
wage as under current law. 
The bill also amends the laws governing enforcement of mmtmum wage and 
overtime laws by increasing penalties, increasing remedies in private civil actions and 
expanding the scope of antiretaliation provisions.