Effective October 1, 2017, Maine employers will have to comply with new or modified wage payment, rest break, recordkeeping, and poster compliance rules detailed in Legislative Document (LD) 1575.
Wage Payment
LD 1575 amends Maine’s wage payment rule to require three things. Employers must pay their employees no later than the following business day if wage payments are due on a day the employer’s business is closed. Employers must also pay employees who are absent from work at the set time of payment and as though they are present at work. Finally, at least thirty days advance written notice must be given before an employer can increase the interval between wage payments.
Final Pay
When an employee separates from employment, the employer must pay the employee's final wages no later than the employee's next scheduled payday. If the employer provides paid vacation, any unused vacation has the same status as wages earned, and, therefore, must be paid out within the same timeframe.
Rest Breaks
Existing law prohibits employers from permitting an employee to work for more than six consecutive hours unless the employee is given the opportunity to take at least 30 consecutive minutes of rest time, except in cases of emergency in which there is danger to property, life, public safety, or public health. LD 1575 clarifies that this rest time may be used by the employee as unpaid mealtime but only if the employee is completely relieved of duty.
The new law further clarifies that the rest break requirement doesn't apply when: (1) fewer than three employees are on duty at any one time; and (2) he nature of the work done by the employee allows the employee frequent paid breaks of a shorter duration during the employee's work day.
Recordkeeping
LD 1575 generally requires employers to retain a record of the number of hours worked by each minor on each day of the week.
Posters
LD 1575 establishes new penalties for violating workplace poster requirements. For a first violation, the fine is up to $25 per day, capped at $1,000. The maximum penalties increase for repeat violations that occur within three years.
Finally, the provision explains that the state is responsible for creating two mandatory posters related to video display terminal safety and minimum wage and overtime rules.
Coverage: Employers with employees in Maine.
Effective: October 1, 2017
Action Required: You should modify your policies and/or practices as appropriate to ensure compliance with Maine’s new pay frequency, final pay, rest break, recordkeeping and poster compliance laws. Please also contact your Human Resources Business Partner if you have any questions.