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Small Business Reacts to Maine Bill to Drastically Change Overtime Law

Small Business Reacts to Maine Bill to Drastically Change Overtime Law

March 24, 2026

Any hike in labor costs puts more financial pressure on the stability of our Main Street businesses.

FOR IMMEDIATE RELEASE

AUGUSTA, ME (March 24, 2026) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, released the following statement by NFIB State Director David Clough in reaction to LD 599, currently awaiting final legislative consideration, which would hike the overtime payment salary test to $58,656.

This labor union backed push copies a Biden Administration rule that was overturned by federal court. The Augusta bill would expand overtime coverage without any proposed change by the Maine Department of Labor (MDOL) and without an economic impact analysis by a state agency.

“For small firms, any hike in labor costs puts more financial pressure on the stability of our Main Street businesses and the people who depend on them,” said Clough. “NFIB doesn’t see that there is any need for an increase other than that which is already built into the law. Only one other northeastern state, New York, has a salary threshold for overtime pay above the federal standard, and many Maine employers are concerned they will be disadvantaged by competition from states without the additional requirement. These additional labor costs are not a helpful way for Maine to stand out.”

Small businesses are also alarmed that this threatened labor cost increase is coming at the same time they are dealing with additional payroll costs for Maine’s new Paid Family & Medical Leave that allows up to 60 days of paid time off (12 weeks) for qualifying events. This law will require thousands of small businesses to follow leave policies dictated by politicians and detailed in complicated new regulations.

“This is almost like a Coney Island hot dog eating contest – how many labor costs can you eat?”, Clough continued. “We don’t want to find out.”

Just this past January 1st, Maine’s overtime payment salary threshold, which is 3000 times the minimum wage ($15,10 per hour), rose to $45,300.32 ($871.16 week). The Maine overtime threshold was $36,000 in 2020. Maine’s minimum wage and overtime salary threshold are expected to increase again on January 1, 2027.

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For over 80 years, NFIB has been the voice of small business, advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit www.NFIB.com.

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NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

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