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Maine’s Supreme Judicial Court issued an opinion this week relating to Portland’s minimum wage ordinance. The high court upheld a lower court decision approving the constitutionality of Portland’s voter-approved hazard wage mandate, however, it will not take effect until January 1, 2022. The court ruled the ordinance unambiguously states an effective date of January 1, 2022 and that the letter of the law outweighs the perception or intent of those who voted for it.
In November 2020, Portland voters approved a ballot initiative that increases the city’s minimum wage to $15 an hour by 2024 and then annually with inflation thereafter. The mandate also created rules for how the minimum wage would be impacted during an emergency declaration.
Under the new law, any person who works within the city during a declared state of emergency must be paid a minimum of 1.5 times the regular minimum wage. Individuals that can telework are excluded from this provision.
Starting in January 2022, during a declared state of emergency, all employees who cannot telework would need to be paid a minimum of $19.50 per hour when the normal minimum wage is $13.00. This is the case whether their normal rate of pay is $13 per hour or $14 per hour. At the same time, if the normal rate of pay for an employee is $20 per hour, the employer would not be required to raise their pay to $30.00 per hour.
Please email Ellen Parent, League Regulatory & Legislative Advocacy Coordinator, at eparent@mainecul.org if you have questions concerning this ruling.
Relevant Media Coverage:
Portland Press Herald: High court says Portland hazard wage is constitutional, but not until 2022
NEWS CENTER Maine: Portland’s hazard pay provision won’t take effect until January 2022, rules Maine Supreme Court