Maine Department of Labor Can Now Order Employers to Pay Wages and Compensation to Underpaid Workers

August 9, 2024

For Immediate Release: August 9, 2024

Maine Department of Labor Can Now Order Employers to Pay Wages and Compensation to Underpaid Workers

AUGUSTA - Today, An Act to Increase Enforcement and Accountability for Wage Violations (PL 2023 c. 651) goes into effect, allowing the Maine Department of Labor the ability for the first time to order employers to pay back wages, liquidated damages, and interest to workers affected by labor law violations. This means that, under the new power, the MDOL may require an employer to pay the worker three times the amount the worker was underpaid, plus interest. Previously the Department's Wage and Hour Division, which is tasked with enforcing labor laws in the state, could only compel an employer to pay owed wages by obtaining a judgment in court, or if the employer agreed to do so in a settlement agreement.

"Employers must pay workers the wages they have earned, when they are due," said Jason Moyer-Lee, Director of the Bureau of Labor Standards. "When this doesn't happen, we have historically lacked the power to order employers to make the workers whole as well as compensate them for having had to forego their wages. Under this law, we now have that power and low-paid workers will benefit as a result."

The statutory change is part of the Department's ongoing efforts in the area of strategic enforcement, or using resources and tools most effectively to achieve widespread and long-lasting compliance with labor laws. Other recent efforts have included 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, monthly meetings with business and union representatives to increase coordination and collaboration, and increasing fines for violating labor laws.

"Research shows that laws like this-which give the state DOL the tools it needs to improve compliancecan have a major impact in reducing illegal 'wage theft'," said Daniel J. Galvin, Professor of Political Science at Northwestern University, a national expert on the topic. "Most importantly, the law should help to ensure that hard-working, low-income Mainers will actually receive the wages they have rightfully earned. Further, all Mainers will benefit from lower rates of poverty, less reliance on public assistance programs, higher tax revenues, and a more level playing field for law-abiding employers. By implementing this law, Maine DOL is pursuing smart, data-driven, results-oriented solutions that should benefit everyone in the state."

More information on Maine's labor laws can be found here: https://www.maine.gov/labor/bls/

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