Higher Fines for Labor Law Violations Go into Effect Today

September 19, 2024

For Immediate Release: September 19, 2024

Higher Fines for Labor Law Violations Go into Effect Today

Fines for labor law violations, such as failing to pay minimum wage or overtime, are increasing today as a new rule comes into effect. Other changes include a reformed appeals process and a shift toward a more data-driven and transparent approach to labor law enforcement.

AUGUSTA - Starting today, September 19, 2024, fines for common labor law violations are increasing as the result of a new rule, Chapter 9: Rules Governing Administrative Civil Money Penalties for Labor Law Violations , going into effect. The rule was issued last year by the Maine Department of Labor's Bureau of Labor Standards, which enforces labor law.

In addition to changing how fines are calculated, which will often result in higher fines, the rule also increases due process for employers wishing to appeal penalties. The rule also introduces a new requirement for the Bureau to study the level of unreported labor law violations in the state, and devise a public-facing strategy to proactively address these violations.

"A crucial component of effective labor law enforcement is deterrence," said Dr. Jason Moyer-Lee, Director of the Bureau of Labor Standards. "It must be costlier to disobey the law than to obey it. At the same time, effective enforcement must also be rigorous about due process and should be evidence-based and transparent in its actions. This rule takes us forward on all counts."

Labor law statutes frequently set out a penalty range for violations. The penalty ranges laid out in statute are unaffected by this rule.

Whereas under the old rule, fines would start at the minimum level and then often reduce from there, under the new rule most violations would start with a fine of $1,000, which would then be reduced by considering factors such as employer size, repeat violations, the severity of the violation, or if the fine for a particular violation is capped at a lower amount. For instance, for minimum wage, the minimum penalty is $50, and the maximum penalty is $200, per violation. Therefore, due to the new rule's more stringent criteria, it is likely that minimum wage violations would result in the maximum penalty of $200 per violation.

The new rule is part of the Departments ongoing strategic enforcement efforts, which is using resources and tools most effectively to achieve widespread and long-lasting compliance with labor laws. Other recent efforts have included supporting the passage of a law, now in effect, that empowers the Department to order employers to pay wages, liquidated damages, and interest to workers owed money; a joint initiative with the National Federation of Independent Business - https://www.maine.gov/labor/news_events/article.shtml?id=12889119 to consult with small Maine businesses on the development of guidance materials for them; and monthly meetings with business and union representatives to increase coordination and collaboration.

The Department updates its Wage and Hour Violations webpage - https://www.maine.gov/labor/bls/whv2024/index.shtml on a quarterly basis.

Anyone who thinks their employment rights have been violated may submit a complaint here: Employer Wage Complaint Form - https://www.maine.gov/labor/labor_laws/complaint/index.shtml . They may also contact MDOL's Wage and Hour Division at (207) 623-7900 orhttps://www.maine.gov/labor/contact/with questions.

The Department also holds Wage and Hour classes on a regular basis, which can be registered for here: https://www.safetyworksmaine.gov/training/scheduled_classes/register.shtml