In Maine, an employer has a great deal of freedom when it comes to writing an employment contract. For example, under Maine wage and hour laws, employers can change an employee’s pay rate at any time if they give the employee a mere 24 hours of notice.
If a person has questions about their pay, they will start by reviewing their employment contract, if they have one. If a person does not have a personal employment contract with their employer, they will look to their employer’s employment policies and procedures manual.
But there are also some basic legal provisions that apply to the payment of wages and salaries to every employee, whatever their hourly pay rate or salary. In Maine, employees must be paid regularly for their work.
When Must Paychecks Be Distributed in Maine?
There are several laws in Maine regarding the timing of the delivery of paychecks in Maine as follows:
- Payday Interval: An employer must pay employees at regular intervals at least every 16 days;
- Pay within 8 Days of the End of a Pay Period: An employer must transfer pay to their employees within 8 days of the end of a pay period;
- Increase in Interval between Paydays: If an employer decides to increase the interval between paydays, they are required to notify their employees at least 30 days before the change goes into effect;
- Pay on the Next Business Day: Employers are required to pay employees no later than the next business day that follows a regular payday that falls on a day when the business is usually closed;
- Pay of Employees Who Are Absent on Payday: Employers must pay employees who are absent from work at the same time as if they were not absent.
Interestingly, Maine has a strict overtime law. It provides that an employer may not require an employee to work more than 40 hours in any one week. If an employee is required to work overtime, the employer must pay them one and one-half times the employee’s regular hourly pay for all hours worked above 40 in a week.
What Happens if You Are Fired?
Regardless of whether an employee is fired or quits, an employer is required to pay for any wages earned through the last day of employment, the final pay upon termination. If a person’s employer provides paid vacation days, the person has a right to be compensated for any unused vacation days that they have accrued.
To obtain any wages owed after a person’s employment has ended, the person must first provide a written demand to the employer’s payroll office. The demand should be dated, signed, and clearly describe what the employer still owes the person and why.
It is a good idea to keep a copy of the demand in case there is a later dispute. After such a request is made, the employer must pay any wages owed to the person by the next scheduled payday or within 14 days, whichever occurs first.
If the employer does not pay the person, they can sue the employer for up to $6,000 in small claims court in Maine. Or a person can seek help from the Maine Department of Labor’s Wage and Hour Division, which enforces employment laws in Maine.
Can Your Paycheck Be Garnished in Maine?
In Maine, as in all states, wage garnishment is a procedure that allows a creditor to collect money owed to them by a debtor from the debtor’s paycheck. The creditor can get the legal right to have a part of the debtor’s wages or salary sent to the creditor directly by the debtor’s employer in order to satisfy a legally recognized debt.
Wage garnishment may be the best-known type of garnishment, but any income or other money that belongs to a debtor that is in the possession of a third party can be garnished by a debtor. So, for example, bank accounts and other assets may be garnished.
Debtors who are not governmental agencies, e.g., the Internal Revenue Service (IRS), must obtain a court order to collect their debt by garnishing a person’s wage. The court order gives the creditor the authority to enforce a judgment. This means that the creditor must first successfully sue the debtor in court and then get a garnishment order.
Some types of income are exempt from garnishment in some states. For example, Social Security payments cannot be garnished except for certain debts, such as tax debts, owed to the federal government. Social Security can also be garnished to pay child support and alimony.
States can also establish other exemptions, either types or amounts of income that cannot be garnished. In Maine, several types of income are exempt from garnishment as follows:
- Social Security: Maine exempts all Social Security payments from garnishment;
- Retirement Benefits: Maine exempts all retirement benefits and state worker pensions from garnishment.
In light of the complete exemption of all Social Security payments from garnishment and the protections for retirement benefits, Maine is a good place for a retiree who is in debt to live.
Other types of public benefits or public assistance payments are exempt from garnishment in Maine as follows:
- Workers’ Compensation;
- Unemployment Benefits;
- Government Aid to the Needy;
- Crime Victim’s Compensation;
- Veteran’s Benefits;
- Annuity payments up to $450 per month;
- Some Types of Life insurance (e.g., group life); and health (including group health) and disability benefits;
- Alimony is exempt to the extent the recipient needs it for their support.
It is important to note, however, that some of these exemptions do not cover all of the benefit payments. Some types of obligations, e.g., child support, can be collected through garnishment of payments that are otherwise exempt, e.g., worker’s compensation.
Most creditors can obtain the right to garnish wages but only after taking the issue to a local court, having a judge acknowledge a person’s failure to pay a debt that is legally owed, and ordering garnishment. However, certain debts can cause your paycheck to be garnished without a court proceeding, such as:
Generally, the amount that can be garnished from a weekly paycheck is capped at the lesser of 25% of a take-home paycheck or 40 times the state minimum wage.
Can You Recover a Withheld Paycheck in Maine?
Employers cannot withhold or garnish any part of an employee’s wages unless:
- Given the power under federal or state law; or
- The employee has given written permission for their employer to withhold funds for a lawful purpose, e.g., making contributions to a retirement account.
If an employer wrongly refuses to issue a paycheck to an employee or fails to pay the employee the full amount of the wages they owe, then the employee can file a claim in small claims court for up to $6,000. Or, again, the employee can seek help in collecting the wages or salary owed to them from the Maine Department of Labor’s Wage and Hour Division.
Where Can You Find the Right Maine Lawyer?
If you think your rights as an employee have been violated and you are looking for an attorney to help you with a paycheck related issue, then LegalMatch.com can connect you with an experienced local Maine employment lawyer today. They will protect your rights and give you the help you need.
