How does the 2024 tipped wage compare to 2023?

In 2023 the tipped minimum cash wage was $6.90 per hour. The 2024 rate of $7.08 represents an increase.

2024 Maine Tipped Minimum Wage

Name: 2024 Maine Tipped Minimum Wage
Creator: DOL

The 2024 Maine Tipped Minimum Wage is $7.08.

Minimum cash wage$7.08

Effective 2024-01-01Source: Maine's Minimum Wage to Increase to $14.15 Per Hour in 2024 (Maine Department of Labor)Verified 2026-08-31

Compared with 2023

Item	2023	2024	Change
Minimum cash wage	$6.90	$7.08	+$0.18 (+2.6%)

Who it applies to

Maine employers who pay a direct cash wage to tipped service employees, under the Maine Department of Labor

What changed this year, and why

Maine's tipped minimum wage (service employee minimum wage) increased to $7.08 per hour on January 1, 2024, up from $6.90 in 2023.

Common questions

What is the tipped minimum wage in Maine for 2024?: The minimum direct cash wage an employer must pay a tipped service employee in Maine is $7.08 per hour in 2024. The employer must be able to show that the employee receives at least the full state minimum wage when the direct wage and tips are combined at the end of the week.
How does the 2024 tipped wage compare to 2023?: In 2023 the tipped minimum cash wage was $6.90 per hour. The 2024 rate of $7.08 represents an increase.

Every amount on this page is a published figure rather than yours. The Tips needed per hour takes the number you enter and works it out against them, showing which published figure it used.

Who counts as a tipped employee

In Maine, you count as a tipped employee when your employer pays you the service employee minimum wage and you regularly receive tips as part of your work. The state treats you as a service employee if tips are a customary part of your compensation in your role, such as working as a server, bartender, or in other positions where customers commonly leave gratuities. For 2024, your employer must pay you at least $7.08 per hour in direct cash wages. This is the minimum cash wage your employer must provide before counting your tips. At the end of each workweek, your employer must be able to show that your direct cash wage plus the tips you actually received add up to at least the full state minimum wage for all the hours you worked that week. If you work in a position where tips are not a regular part of your pay, this lower cash wage does not apply to you, and you are owed the full minimum wage for every hour you work.

In addition to the minimum wage, the new "tip wage," or service employee minimum wage, in 2024 will be $7.08 per hour. This means that service employees must receive at least a direct cash wage of $7.08 per hour from the employer.
Maine's Minimum Wage to Increase to $14.15 Per Hour in 2024 (Maine Department of Labor)

What a tip credit is, and the cash wage underneath it

In Maine, the tip credit is the difference between the full minimum wage and the direct cash wage your employer pays you. For 2024, your employer pays you at least $7.08 per hour in direct cash wages, and can count your tips toward meeting the full minimum wage requirement. This is the tip credit arrangement - your employer pays the lower cash wage because they are relying on your tips to make up the difference. However, there is an important protection: at the end of each workweek, your employer must be able to show that when they add your direct cash wage and your tips together, the total equals at least the full state minimum wage for all hours worked that week. If your tips plus the $7.08 per hour cash wage do not reach the full minimum wage, your employer is responsible for the shortfall and must pay you the difference. The tip credit only works if your tips actually bring you up to the full minimum wage - if they don't, the employer must make up the difference to ensure you receive at least the minimum wage for every hour you work.

The employer must be able to show that the employee receives at least the minimum wage of $14.15 per hour when the direct wage and tips are combined at the end of the week.
Maine's Minimum Wage to Increase to $14.15 Per Hour in 2024 (Maine Department of Labor)

When the tips do not get you to the minimum wage

Maine law requires your employer to guarantee you earn at least the full state minimum wage every week, even when your tips are low. Your employer must pay you a direct cash wage of at least $7.08 per hour. At the end of each workweek, the employer adds up your direct wages and your tips. If that total falls below what you would have earned at the full minimum wage for every hour you worked, your employer must make up the difference. This protection means the tip credit never reduces your total pay below the standard minimum wage. In a slow week with fewer customers or smaller gratuities, the risk falls on the employer, not on you. You are still entitled to receive the full minimum wage for every hour worked in Maine, regardless of how much you earned in tips.

This means that service employees must receive at least a direct cash wage of $7.08 per hour from the employer. The employer must be able to show that the employee receives at least the minimum wage of $14.15 per hour when the direct wage and tips are combined at the end of the week.
Maine's Minimum Wage to Increase to $14.15 Per Hour in 2024 (Maine Department of Labor)

The notice an employer owes you before it takes the credit

Before your employer in Maine can pay you the lower service employee cash wage of $7.08 per hour and count your tips toward the minimum wage, the employer must inform you about this arrangement in 2024. Maine law requires employers to provide notice to tipped employees before taking a tip credit. This notice must explain that you will receive a direct cash wage of $7.08 per hour, that your tips will be counted as part of your total compensation, and that your employer is still required to ensure your total pay reaches at least the full minimum wage each week. Without proper notice, your employer cannot take advantage of the tip credit and must pay you the full minimum wage directly. The Maine Department of Labor enforces these notice requirements under Maine statute Title 26, chapter 7, section 664. If you are a tipped employee and your employer has not provided you with this information, you may be owed the full minimum wage rather than the lower service employee wage.

the new "tip wage," or service employee minimum wage, in 2024 will be $7.08 per hour. This means that service employees must receive at least a direct cash wage of $7.08 per hour from the employer.
Maine's Minimum Wage to Increase to $14.15 Per Hour in 2024 (Maine Department of Labor)

Your employer, your manager and your supervisor may not keep your tips

Under Maine law, your tips belong to you, not to your employer. The state's service employee minimum wage of $7.08 per hour is the direct cash wage your employer must pay you as a tipped worker. The tips you receive are your compensation for providing service, and they are used to bring your total pay up to the full minimum wage. Your employer, your manager, and your supervisor may not keep any portion of your tips. The employer is allowed to count your tips toward meeting the minimum wage obligation through the tip credit arrangement, but the tips themselves remain yours. The employer's role is to ensure that your direct cash wage plus your tips together equal at least the full minimum wage each week, not to take a share of what customers give you. If your employer attempts to keep any of your tips, that violates the wage protections that apply to service employees in Maine.

In addition to the minimum wage, the new "tip wage," or service employee minimum wage, in 2024 will be $7.08 per hour.
Maine's Minimum Wage to Increase to $14.15 Per Hour in 2024 (Maine Department of Labor)

Which tip pools you can be made to join

In Maine, if your employer requires you to participate in a tip pool, the pool must be limited to employees who customarily and regularly receive tips, such as servers, bartenders, and bussers. When you participate in a valid tip pool, your tips are shared among the participating tipped employees according to the employer's established policy. Your employer may still pay you the service employee minimum wage of $7.08 per hour and count your share of the pooled tips toward meeting the full minimum wage requirement. However, the employer cannot include non-tipped employees like cooks, dishwashers, or managers in the tip pool. The same weekly calculation applies: your employer must be able to show that your direct cash wage plus your share of the pooled tips equals at least the full minimum wage for all hours you worked that week. If the tip pool includes ineligible employees or if your pooled tips plus the cash wage fall below the minimum wage, your employer has violated Maine's wage protections for service employees.