The state Labor Department says Maine’s minimum wage will increase by 25 cents an hour as of October 1st. This will place the minimum wage for the Pine Tree State at $7.25.

This is the first step in a two-step increase that will lift Maine’s minimum wage to $7.50 per hour by October 2009. It is the third minimum wage increase signed into law by Democratic Governor John Baldacci.

The Labor Department reports that 26,000 Maine workers have earnings at or below the minimum wage. Some minimum wage earners are teens employed at their first jobs, but most are adult workers.

Certain employers are exempt from paying the minimum wage. Tipped employees may be paid one-half the regular minimum wage, provided the employer makes up the difference if tips plus the hourly wage do not average at least the minimum wage.

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