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PUBLIC LAWS OF MAINE
First Regular Session of the 119th

CHAPTER 465

H.P. 214 - L.D. 292

An Act to Enhance the Payment Options for Certain Employers

Be it enacted by the People of the State of Maine as follows:

     Sec. 1. 26 MRSA §621, as amended by PL 1995, c. 340, §1, is repealed.

     Sec. 2. 26 MRSA §621-A is enacted to read:

§621-A. Timely payment of wages

     1. Minimum frequency. At regular intervals not to exceed 16 days, every employer must pay all wages earned by each employee. Each payment must include all wages earned to within 8 days of the payment date. An employee who is absent from work at a time fixed for payment must be paid on demand after that time.

     2. Regular payment required. Wages must be paid on an established day or date at regular intervals made known to the employee. When the interval is less than the maximum allowed by subsection 1, the interval may not be increased without written notice to the employee at least 30 days in advance of the increase.

     Sec. 3. 26 MRSA §622, as amended by PL 1975, c. 113, §1, is repealed and the following enacted in its place:

§622. Records

     Every employer shall keep a true record showing the date and amount paid to each employee pursuant to section 621-A. Every employer shall keep a daily record of the time worked by each such employee unless the employee is paid a salary that is fixed without regard for the number of hours worked. Records required to be kept by this section must be accessible to any representative of the department at any reasonable hour. Sections 621-A to 623 do not excuse any employer subject to section 702 from keeping the records required by that section.

     Sec. 4. 26 MRSA §623, as amended by PL 1975, c. 113, §2, is further amended to read:

§623. Exemptions

     This section and sections 621 621-A and 622 shall do not apply to family members and salaried employees as defined in section 663, subsection 3, paragraphs J and K. Sections 621-A and 622 do not apply to an employee of a cooperative corporation or association if he the employee is a stockholder therein of the corporation or association, unless he the employee requests such the association or corporation to pay him weekly that employee in accordance with section 621-A. No A corporation, contractor, person or partnership shall may not by a special contract with an employee or by any other means exempt himself or itself from this section and sections 621 621-A and 622. Whenever the terms of employment include provisions for paid vacations, vacation pay on cessation of employment shall have the same status as wages earned.

     Sec. 5. 26 MRSA §626-A, as amended by PL 1993, c. 648, §1, is further amended to read:

§626-A. Penalties

     Whoever violates any of the provisions of sections 621 621-A to 623 or section 626, 628, 629 or 629-B is subject to a forfeiture of not less than $100 nor more than $500 for each violation.

     Any employer is liable to the employee or employees for the amount of unpaid wages and health benefits. Upon a judgment being rendered in favor of any employee or employees, in any action brought to recover unpaid wages or health benefits under this subchapter, such judgment includes, in addition to the unpaid wages or health benefits adjudged to be due, a reasonable rate of interest, costs of suit including a reasonable attorney's fee, and an additional amount equal to twice the amount of unpaid wages as liquidated damages.

     Remedies for unpaid wages do not become available to the employee except as follows. If the wages are clearly due without a bona fide dispute, remedies are available to the employee 8 days after the due date for payment. If there is a bona fide dispute at the time payment is due, remedies become available to the employee 8 days after demand when the wages are, in fact, due and remain unpaid.

     The action for unpaid wages or health benefits may be brought by either the affected employee or employees or by the Department of Labor. The Department of Labor is further authorized to supervise the payment of the judgment, collect the judgment on behalf of the employee or employees and collect fines incurred through violation of this subchapter. When the Department of Labor brings an action for unpaid wages or health benefits, this action and an action to collect a civil forfeiture may both be joined in the same proceeding.

     Sec. 6. 26 MRSA §626-B, as enacted by PL 1975, c. 113, §5, is repealed.

     Sec. 7. 26 MRSA §663, sub-§3, ¶K, as amended by PL 1981, c. 276, is repealed and the following enacted in its place:

Effective September 18, 1999, unless otherwise indicated.

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