Employers will be affected by new labor costs that take effect January 1^st.

• Tax on wages to fund Paid Family & Medical Leave (PFML)
  • 1% at employers with 15 or more workers
  • .5% at employers with 1-14 workers
• $14.65 minimum wage
  • $15.50 in Portland and Rockland
• $43,951 overtime payment salary threshold ($845.21 per week)
• Unemployment tax rates increase slightly

All employers will be affected by the new PFML tax (“contributions”).  No employer is exempt, but different rules apply based on employment size.  Detailed information and instructions are posted on the Maine Department of Labor website: www.maine.gov/paidleave/

• Maine is one of only 13 states with a PFML law. Benefit payments begin May 2026.
• Maine is one of only 15 states with a state minimum wage of at least $14.65.
• Maine is only of only 6 states with an overtime salary threshold.

Unemployment tax rates increase very slightly, with the combined average rate going from 2.32% to 2.41% of taxable wages in 2025.  The taxable wage base remains at $12,000.

Information about the these and other Maine labor laws can be found at: www.maine.gov/labor