Maine
Make employment in Maine easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Maine, all in one easy-to-use platform.
- Capital City
Augusta
- Currency
United States Dollar ($, USD)
- Population size
1,400,000
Facts & Stats
- Capital City
Augusta
- Currency
United States Dollar ($, USD)
- Population size
1,400,000
- VAT - standard rate
6%
From the rugged coastline of Acadia National Park to the vibrant communities of Portland and Bangor, Maine has always mixed natural beauty with cultural richness.
Known for its iconic lobster industry and pristine wilderness, the Pine Tree State offers a unique blend of traditional maritime heritage and emerging economic opportunities. With a thriving arts scene, a growing tech sector, and a strong sense of community, Maine is an inviting destination for both employees and employers alike.
Grow your team in Maine with Remote
If you want to hire in Maine, you’ll need to own a legal entity there — or partner with a global employment solutions provider, like Remote.
We can employ top talent in Maine on your behalf and manage complex HR tasks such as onboarding, payroll, benefits, and taxes. You can also manage and pay your contractors in Maine through Remote.
Risks of misclassification
Maine, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Maine may lead to fines and penalties for the offending company.
Employing in Maine
In Maine, workers’ rights are protected by numerous employment and labour laws, at both the state and federal level. As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race.
Here are the key things you need to know about hiring in Maine.
Hours of work in Maine
Work and overtime laws in Maine are laid out in the state’s employee rights guide.
What is considered full-time employment in Maine?
In Maine, full-time employment is generally considered to be between 30 and 40 hours per week, although no legal definition exists.
Do pay employees get overtime in Maine?
Under the federal Fair Labour Standards Act, non-exempt employees are entitled to overtime pay of 1.5x their regular pay rate if they work more than 40 hours in a week.
Employees are generally (but not always) exempt from overtime if they:
Earn more than the specified state or federal exemption threshold
Perform a role with duties that are considered executive or managerial
Work in a certified or licensed profession, such as law, accounting, architecture, or engineering
In Maine, the pay threshold for exemption is currently $796.16 per week, which is higher than the federal minimum.
Note that the federal pay threshold for exemption is currently being reviewed in the US.
Minimum wage in Maine
The minimum state wage for private sector employees is currently $14.15 per hour.
Onboarding timeline in Maine
We can help you get your new employee started in Maine fast, with a minimum onboarding time (MOT) of just 2 working days. Note that the MOT is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Remote platform.
For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.
Please note that payroll cut-off dates can impact the actual first day of employment. Remote’s payroll cut-off date is the 10th of the month, unless otherwise specified.
Payroll cycle in Maine
Under state law, employees must be paid at least once every 16 days.
For Remote customers, employee payments are made twice per month in equal instalments, payable in arrears. The first payment is made on the 15th of the month and the second payment is made on the final day of the month. If relevant, bonus payments, commissions, and expense reimbursements are included in the second payment of the cycle.
Effortless HR in Maine: Take the Tour
Are employers required to provide health insurance in Maine?
Under the federal Affordable Care Act, organisations with a headcount of 50 or more must offer statutory health insurance to their full-time employees.
Many employers also offer some level of supplemental health insurance. While this can lead to a relative rise in employment costs, it’s an essential benefit that ensures your people have access to routine care and are covered in the event of an emergency.
Because Remote is the employer of record (EOR), it’s important for us to offer the same core benefits to all employees to ensure fair and non-discriminatory hiring practices. This protects both your business and ours.
Note that we do not add a markup on any benefits premiums or administration costs.
Are employers required to offer 401k in Maine?
The state is currently in the process of mandating qualified savings plans for private sector employees.
Under this legislation, you will need to enrol your employees into the state-sponsored Maine Retirement Savings Program (or another recognised retirement plan).
Note that this will only apply if your business:
Has five or more employees
Has been a registered business for at least two years
This program is set to go live in 2024, with financial penalties for non-compliance being introduced in July 2025.
Competitive benefits in Maine
Remote can help you craft a competitive benefits package to attract and retain the best global talent. Our benefits experts understand the trends, requirements, and expectations of the Maine labour market, allowing your employees to feel appreciated and thrive.
Our benefits packages in Maine usually include some or all of the following:
Pension / 401k retirement plan
Medical insurance
Vision insurance
Health Saving Plan (HSA)
Long term disability insurance (LTD)
Dental insurance
Life insurance
Flexible Spending Account (FSA)
Taxes in Maine
Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in Maine.
Employer taxes
Employment Tax | |
|---|---|
6% | Federal unemployment insurance tax (FUTA) (charged on the first $7,000 an employee earns per year) |
0.22% to 5.69% | State unemployment insurance tax (SUTA) |
6.2% | FICA (Social security) |
1.45% | FICA (Medicare) |
Employee taxes
Payroll Tax | |
|---|---|
10% to 37% | Federal income tax |
5.18% to 7.15% | State income tax |
6.2% | FICA (Social security) |
1.45% | FICA (Medicare) |
Types of leave
Holiday | Under Maine’s Earned Paid Leave (MEPL) law, nearly all employees are entitled to one hour of paid holiday leave for every 40 hours worked (up to 40 hours per year). Note that Maine is the first US state to enforce paid holiday leave for employees. |
Sick leave | In Maine, paid sick leave is covered by MEPL. The Maine Family Medical Leave Requirements Act (MFMLRA) also requires employers to provide up to 10 weeks’ unpaid sick leave every two years. Can an employer deny sick time in Maine? Under the federal Family and Medical Leave Act (FMLA), eligible employees are entitled to up to 12 weeks of unpaid sick leave per year, provided they: Have worked for the same employer for at least 12 months Work in a location where at least 50 people are employed by the company within a 75-mile radius |
Parental and maternity leave | Employees are entitled to up to 12 weeks of unpaid maternity or paternity leave, under both the MFMLRA and the FMLA. Some organisations opt to pay a reduced pay during this period. |
Bereavement leave | Employers are not legally required to provide bereavement leave to their employees, although most organisations offer unpaid leave. |
Jury duty | Employees must report for jury duty if summoned (unless exempt). Jurors are typically on call for two weeks. Do employers have to pay for jury duty in Maine? No. Private sector employers are not required to pay employees on jury service, but they must provide unpaid leave, and cannot penalise or terminate an employee on jury duty. Some employers provide paid leave. |
Military leave | Under state and federal law, employers must grant unpaid leave to employees who are members of the military or the National Guard for military duty or training. These employees have the right to take time off for their military obligations, and employers are prohibited from discriminating against them based on their military service. Under state law, children, parents, and spouses of military personnel are also entitled to 15 days’ unpaid leave during a deployment, provided they have worked at least 1,250 hours in the last year. |
Employment termination
Termination process
Like nearly all US states, Maine is an at-will state. This means both employers and employees can end the employment relationship without reason, provided it is legal.
Remote’s legal experts can help you navigate terminations to ensure employees are only let go fairly, negating any potential legal complications.
Notice period
Employers and employees are not required to provide notice of termination, unless otherwise stated in the employment contract.
Despite this, it's usually customary for employees to provide two weeks' notice when leaving an organisation.
Severance pay
If your company has at least 100 employees, you must provide severance pay to your employees if they are laid off.
You must also pay employees for all accrued but unused paid holiday leave, regardless of the reason for termination.
Probation periods
There is no requirement to provide a probation period for employees, although many companies implement internal probation policies. These policies typically involve a formal performance evaluation after a specified period, such as three or six months.