An Act To Raise the Minimum Wage and Index It to the National Average Wage
Maine Legislature, Session 127, LD 0843
Committee: Labor, Commerce, Research and Economic Development
Sponsors: MELARAGNO, BREEN, BECK, BROOKS, BRYANT, FOWLE, HUBBELL, POWERS, PRESCOTT, HASKELL
Amends: 26 MRSA §664

Legislative Document 
No. 843 
H.P. 577 
House of Representatives, March 10, 2015 
An Act To Raise the Minimum Wage and Index It to the National 
Average Wage 
Reference to the Committee on Labor, Commerce, Research and Economic Development 
suggested and ordered printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative MELARAGNO of Auburn. 
Cosponsored by Senator BREEN of Cumberland and 
Representatives: BECK of Waterville, BROOKS of Lewiston, BRYANT of Windham, 
FOWLE of Vassalboro, HUBBELL of Bar Harbor, POWERS of Naples, PRESCOTT of 
Waterboro, Senator: HASKELL of Cumberland. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  26 MRSA §664, sub-§1, as amended by PL 2007, c. 640, §4, 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 $7.25 per hour.  Starting October 1, 2009, the minimum hourly wage is $7.50 per 
hour.  Starting October 1, 2015, the minimum hourly wage is $8.45 per hour.  Starting 
October 1, 2016, the minimum hourly wage is $9.40 per hour.  Starting October 1, 2017, 
the minimum hourly wage is $10.35 per hour.  Starting October 1, 2018, the minimum 
hourly wage is $11.30 per hour.  Starting October 1, 2019, the minimum hourly wage is 
$12.00 per hour.  Starting October 1, 2020 and each October 1st thereafter, if there is an 
increase in the national average wage index as determined by the federal Social Security 
Administration for the previous calendar year from the national average wage index of 
the next previous calendar year, the minimum hourly wage in effect at that time must be 
increased by the same percentage.  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. 2.  26 MRSA §664, sub-§2, as amended by PL 2011, c. 118, §3, is further 
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 minimum hourly wage 
established in this section.  Starting October 1, 2015, the tip credit may not exceed $3.00 
per hour.  Starting October 1, 2016, the tip credit may not exceed $2.25 per hour.  
Starting October 1, 2017, the tip credit may not exceed $1.50 per hour.  Starting October 
1, 2018, the tip credit may not exceed $0.75 per hour.  Starting October 1, 2019, an 
employer may not use a tip credit.  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. 
The tips received by a service employee become the property of the employee and may 
not be shared with the employer.   Tips that are automatically included in the customer's 
bill or that are charged to a credit card must be treated like tips given to the service 
employee.  A tip that is charged to a credit card must be paid by the employer to the 
employee by the next regular payday and may not be held while the employer is awaiting 
reimbursement from a credit card company. 
SUMMARY 
This bill raises the minimum wage incrementally until it is $12.00 per hour starting 
October 1, 2019, and it requires the minimum wage to be adjusted based on the increase 
in the national average wage index, starting October 1, 2020.  It also reduces the tip credit 
incrementally until it is eliminated starting October 1, 2019.