Maine Employment Law Update — April 2019

Maine

Pay Equity

On April 12, 2019, Maine Governor Janet Mills signed legislation (S.P. 90) regarding pay equality. Under the act:

  • Evidence of unlawful employment discrimination includes, but is not limited to, an employer’s inquiring, either directly or indirectly, about the compensation history of a prospective employee (applicant) from the applicant, the applicant’s current or former employer, or otherwise seeking the applicant’s compensation history. An employer or employment agency may inquire about or seek an employee’s or applicant’s compensation history after negotiating and extending a job offer that includes all compensation terms. If an employee or applicant voluntarily disclosed compensation history information, without prompting by the employer or employment agency, the employer or employment agency may seek to confirm or permit the applicant to confirm such information prior to a job offer. This does not apply to an employer who asks about compensation history pursuant to any federal or state law that specifically requires the disclosure or verification of compensation history for employment purposes.
  • An employer may not prohibit an employee from disclosing his or her own wages, or from inquiring about or disclosing another employee’s wages, if the purpose of the disclosure or inquiry is to enforce the law. This does not create an obligation to disclose wages.
  • Employers are prohibited from using, or inquiring about, an applicant’s compensation history unless the employer first negotiates and extends an employment offer, with all compensation terms included, to the applicant. Thereafter, the employer may inquire about or confirm the applicant’s compensation history. The law does not apply to an employer who asks about compensation history pursuant to any federal or state law that specifically requires the disclosure or verification of compensation history for employment purposes.

The law is effective September 18, 2019.

Read ME S.P. 90

Tip Pooling Clarification

On March 25, 2019, Maine Governor Janet Mills signed legislation (H.P. 67) clarifying that an employer may establish a valid tip pooling arrangement; however, this arrangement may exist only among service employees, and it cannot violate the federal Fair Labor Standards Act.

The law is effective September 17, 2019.

Read ME H.P. 67