Good afternoon from Augusta,
The 131st Maine Legislature adjourned for the year just after 10pm this past Friday (May 10th) evening, but not without controversy.
The Senate convened at 9:30am that day and worked to remove bills from the Special Appropriations table that were supposed to receive funding or had been amended to eliminate their fiscal impact. During this time, the House of Representatives was taking up the Governor’s vetoes. After both chambers completed their morning work around 2pm, there was a long delay, and everything seemed to come to a screeching halt.
Evidently, the Governor refused to receive any bills from the legislature as she considered Friday a day to only take up vetoes and no further legislation. After multiple meetings amongst leadership, and 6-7 hours of wasted time, the 131st Legislature adjourned sine die (without day). The abrupt adjournment is significant as it killed ALL remaining legislation that was not acted upon before Friday. Hundreds of bills, both good and bad, were sacrificed at the end due to the mismanagement of leadership and their inability to get along.
Unfortunately, a bill we had worked on extensively that would have eliminated the sales tax on log trucks and trailers was one of the bills that died, LD 2279, An Act to Promote Equity in the Forest Products Industry by Allowing Commercial Wood Haulers to Be Eligible for Certain Sales Tax Exemptions and Refunds. The bill, sponsored by Senate President Troy Jackson (D-Aroostook), included commercial wood hauler’s tractors, trailers, and semi-trailers in the sales tax exemption list, similar to wood harvesting equipment. The PLC testified in qualified support of this bill.
The legislature is now on break for the rest of the year and will not return until the 132nd Legislature convenes in December. This is a campaign year where all members of the legislature are up for reelection and both presiding officers are termed out, so there will be brand new leadership in both chambers.
The dysfunction of the legislature seems to get worse year after year, which has become a common theme as the years progress. We are hopeful as we turn the page to the 132nd Legislature, new leadership will bring common sense back to Augusta.
You can find more information on legislation we were following on our bill tracking spreadsheet here.
Bills the PLC were Following on the House and Senate Floor
LD 513, Act Regarding Overtime Protections for Certain Maine Workers. The PLC testified in opposition to this bill last year. Sponsored by Senator Tipping (D-Penobscot), this bill will require an employee that works in an executive, administrative, or professional capacity must earn $55,086 beginning January 1, 2025, to be exempt from the laws governing minimum wage and overtime pay. Includes and annual adjustment starting January 2026 based on the percentage of annual increase in certain earnings published by the US DOL. This bill died upon adjournment.
LD 1487, An Act to Ensure That Residents of the State Have the Right to Repair Their Own Electronic Devices. The PLC testified Neither for Nor Against this bill in 2023 and is monitoring it. The membership feels strongly that information must be provided by the OEM’s, but it should not be provided for free. The committee passed a majority report along party lines concentrating on home appliances and personal devices such as cell phones, tablets, computers, etc. The Republican members of the committee wanted the bill more simplified and opted to vote for a different amendment to only incorporate personal hand-held devices. Both reports have exempted off-road and heavy equipment from the bill. This bill died upon adjournment.
LD 1648, An Act to Make Changes to the Farm and Open Space Tax Law
This bill, sponsored by Rep. Boyle (D-Gorham) establishes a new method for the valuation of land under the farm and open space tax law. Last year, PLC testified in qualified support, but insisted that changes be made to encourage forest management on open space to encourage the growth and harvest of more wood, not less, and not make land a haven for carbon management (no harvest). A revised version of the bill was presented to the Taxation Committee by The Nature Conservancy (TNC), the primary supporter of the bill. TNC presented the bill on behalf of the stakeholder group the PLC is part of that had been collectively working on the new language. The PLC is in support of the working group’s recommendation. This bill died upon adjournment.
LD 2191, An Act to Provide Relief to Small Businesses Affected by Severe Weather-related Events. The bill includes a one-time General Fund appropriation of $50 million in fiscal year 2023-24 to the program. The PLC testified in support of this bill during the public hearing. As amended, the bill includes assistance to loggers for income replacement and dedicated funding to establish a Wood Salvage and Reclamation Program in the Department of Economic and Community Development to provide grants to landowners and contractors effected by the recent severe weather events. This bill died upon adjournment.
LD 2212, An Act to Strengthen Maine's Agriculture, Food System and Forest Products Infrastructure Investment. LD 2212 is sponsored by Speaker of the House, Rachel Talbot-Ross (D-Portland) and is one of the initiatives that we are very supportive of this session. LD 2212 provides a $10 million appropriation to the Maine Agriculture, Food, and Forest Products Investment Fund and makes changes to who appoints members of the advisory board. The PLC recently testified in support of the bill as it could provide new opportunities for our members to get grants and low interest loans for their businesses for equipment and reinvestment. This bill died upon adjournment.
LD 2279, An Act to Promote Equity in the Forest Products Industry by Allowing Commercial Wood Haulers to Be Eligible for Certain Sales Tax Exemptions and Refunds. This bill, sponsored by Senate President Troy Jackson (D-Aroostook), aims to include commercial wood hauler’s tractors, trailers, and semi-trailers in the sales tax exemption list, similar to wood harvesting equipment. The PLC testified in qualified support of this bill. This bill died upon adjournment.
Regulations and Rule-making
New USDOL Overtime Rule to Go into Effect July 1
The rule includes increases to the standard salary level, and provides for future updates every three years to reflect current earnings data.
The U.S. Department of Labor announced a final rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees, which will take effect on July 1, 2024.
The final rule updates and revises the regulations issued under section 13(a)(1) of the Fair Labor Standards Act implementing the exemption from minimum wage and overtime pay requirements for executive, administrative, and professional (EAP) employees. Revisions include increases to the standard salary level and the highly compensated employee total annual compensation threshold, and a mechanism for the updating of these earnings thresholds to reflect current earnings data. While this new rule will take effect in Maine, Maine law does not have an exemption from overtime for highly compensated employees.
Background:
Employees are exempt from the Fair Labor Standards Act’s minimum wage and overtime protections if they are employed in a bona fide executive, administrative, or professional capacity, as those terms are defined in the Department’s regulations at 29 CFR part 541. To fall within the EAP exemption, an employee generally must meet three tests:
- be paid a salary, meaning that they are paid a predetermined and fixed amount that is not subject to reduction because of variations in the quality or quantity of work performed;
- be paid at least a specified weekly salary level; and
- primarily perform executive, administrative, or professional duties, as provided in the Department’s regulations.
The Department’s regulations also provide an alternative test for certain highly compensated employees who are paid a salary, earn above a higher total annual compensation level, and satisfy a minimal duties test.
The final rule will increase the standard salary level and the highly compensated employee total annual compensation threshold on the rule’s effective date on July 1, 2024, and on January 1, 2025, when changes in the methodologies used to calculate these levels become applicable. The final rule also provides for future updates of these levels every three years to reflect current earnings data.
How will this affect Maine?
When there is both a federal and state wage and hour law, whichever law is most protective is the enforced law. In this case, this means that the new federal rule will be enforced in Maine by the Maine Department of Labor beginning on July 1, 2024 – except for the exemption from overtime for highly compensated employees.
- The current minimum salary in Maine is $816.35 per week.
- The new minimum salary as of July 1, 2024 will be $844 per week.
- The new minimum salary as of January 1, 2025 will be $1,128 per week.
More information on the rule can be found on the U.S. Department of Labor’s website: https://www.dol.gov/agencies/whd/overtime/rulemaking
I hope you have a great rest of your week, and please do not hesitate to contact me if you have any questions or concerns.
Best,
Dana