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Maine lifts the overtime-exempt salary floor to $905.79 a week on January 1

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A salary does not settle whether a Maine worker is owed overtime. A salaried employee who works more than 40 hours in a week can be exempt from overtime pay only if the job is a bona fide executive, administrative or professional one and the pay clears a salary test. From January 1, 2027, the Maine Department of Labor says, that test is $905.79 a week, or $47,101.08 a year.

The figure is not a minimum wage. It is the line above which a salaried worker can be classified as exempt, and it moves because the state minimum wage moves.

A salary test written as 3,000 times the minimum wage

Maine’s statute defines the exempt employee in Title 26, section 663 as a “salaried employee who works in a bona fide executive, administrative or professional capacity and whose regular compensation, when converted to an annual rate, exceeds 3000 times the State’s minimum hourly wage or the annualized rate established by the United States Department of Labor under the federal Fair Labor Standards Act, whichever is higher.” The text is in subsection 3(K).

The test has two moving parts. One is the state minimum wage, multiplied by 3,000. The other is a federal annualized salary level, and whichever is higher wins. The state’s September 18 release repeats the rule and then supplies the 2027 result. With the minimum wage rising from $15.10 to $15.70 on January 1, 3,000 times $15.70 is $47,100; the department’s $47,101.08 annual figure sits $1.08 above that, and divided by 52 weeks it gives the $905.79 weekly figure. The release does not state a federal figure for comparison, so which side of the “whichever is higher” clause governs is not something the sources spell out.

Why the wage moves it

The release says the Department of Labor must adjust the minimum wage each year under Title 26, chapter 7, section 664, using the cost-of-living index for the Northeast Region, a requirement Maine voters added by referendum in 2016. For 2027 the department cites a 4.1 percent increase in the CPI-W between August 2025 and August 2026. Because the exempt-salary test is tied to the minimum wage by multiplication, the same adjustment feeds into the overtime line.

The U.S. Department of Labor’s state table lists Maine at $15.10 today and notes that overtime premium pay applies weekly after 40 hours. It also carries a footnote that the state rate adjusts annually by a set formula, and another that if the highest federal minimum is raised above the state rate, the state rate rises to match.

Where $905.79 leaves a salaried worker

The salary is only half of the test, so the arithmetic below applies to jobs that otherwise meet the duties requirements. A weekly salary below $905.79 does not qualify for the exemption in 2027; a weekly salary at or above it can. A worker paid $900 a week, for instance, would be $5.79 a week short, or $301.08 over 52 weeks. This is illustration, not a case from the release, and it shows how a few dollars decide classification at the margin.

Overtime pay as such is not changed by the release. What changes is how many salaried jobs can still be treated as exempt. An employer whose salaried assistant managers or office supervisors earn between the old line and the new one faces a choice on January 1: raise the salary to the new level, or pay overtime for hours beyond 40 in a week. The release does not say how many Maine workers sit in that band, and the department publishes no such count, so the size of the group is unknown from the sources.

The department’s own overtime page lags behind

Maine’s overtime exemption page states the salary test as it stood at an earlier date: “$796.17 per week or $41,401 per year,” labeled as the threshold as of January 1, 2023. Next to the 2027 figure that is a difference of $109.62 a week. The page is a reminder to check the date on any wage-and-hour number before relying on it, since the figure in the September 18 release is the one the department set for 2027.

The same release moves the tipped cash wage

The same announcement raises the tipped cash wage from $7.55 to $7.85 an hour. Service employees must get that direct cash wage at least, and employers must show that cash plus tips reaches the full $15.70 an hour on a weekly basis. The monthly tip threshold in the release moves from $191 to $199. The release also cites a Bureau of Labor Statistics survey for 2025 that counted 28,000 hourly Maine workers paid under $15.00 an hour. That is a count of workers paid below $15.00, not of those who receive the raise, and it is not a count of salaried workers.

The department’s communications specialist, Autumn Mahoney, is listed as the contact on the announcement. The record that matters here is the one in the release and the statute together: a threshold of $905.79 a week, effective January 1, 2027, set by the Maine Department of Labor on September 18, 2026 under 26 M.R.S. section 663.


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This piece was drafted with AI assistance; the figures were checked against the Maine Department of Labor release, the Maine statute and the U.S. Department of Labor table linked above.


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