Maine Law

• The Maine Department of Labor regulates employment pay practices. Demoting employees by reducing work hours, changing schedules or decreasing wages is not illegal, as long as employers pay their employees at least $455 in weekly salary wages, or pay their hourly employees at least $7.50 per hour, as of 2011. Since Maine is an employment-at-will state, employers can demote their employees without notice or legal cause, absent an express union or employment agreement prohibiting demotions.
  
  

Salaried Employees

• Under Maine law, employers can pay their employees salary wages if they work in professional, executive or administrative positions. These employees are also exempt from the state's overtime compensation laws requiring employers to pay their non-salaried employees at least 1.5 times their standard hourly pay for hours in excess of 40 weekly. Furthermore, Maine law allows employees to refuse mandatory overtime hours if they exceed 80 hours of overtime in a two-week period.
  
  

Withholding Wages

• Employers cannot withhold an employee's wages if she has already performed work and earned those wages. In other words, an employer who reduces wages and demotes an employee must pay her at her normal wage for work already performed. Maine law requires employers to notify their employees of any decrease in salary or wages at least one full business day before implementing the reduced compensation. Employers are prohibited from deducting wages from an employee's paycheck as a disciplinary measure to pay for broken equipment, or unpaid customer bills. Maine law requires employers to pay their wages to their employees on regularly established paydays at least once every 16 days.
  
  

Maine Whistleblowers Protection Act

• In addition to complying with equal employment opportunity laws, Maine employers cannot demote their employees for reporting health and safety violations, reporting illegal conduct, reporting improper medical procedures against health care employers and for refusing to participate in illegal conduct or dangerous work. Employees can exercise their whistleblower rights by filing wage discrimination complaints against their employers with the Maine Human Rights Commission within 180 days of termination or demotion.
  
  

Considerations

• Since state laws can frequently change, do not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your state.