Photo / Courtesy of Murray Plumb & Murray
Kristin Hebert-Grande
Updated: 3 hours ago
Commentary
Inside the rotunda: What businesses need to know about new and proposed Maine laws
File photo / Jim Neuger
The Maine State House in Augusta.
By Kristin Hebert-Grande and Ryan Morse, Murray Plumb & Murray
With the first session of the 132nd Maine Legislature now closed, several new laws are set to take effect on Sept. 23, 2025, ranging from minimum pay protections to AI chatbot regulations. Other proposed laws have been tabled for the Legislature’s 2026 session, covering topics like employer surveillance, flexible scheduling and pay transparency.
Whether you’re a business owner, an employer or an investor, understanding what’s changing now and what could change soon is critical to staying compliant with Maine laws.
Minimum pay requirements
In one of the widest-reaching new laws impacting employers, LD 598 requires employers to pay employees when their number of hours in a scheduled shift are reduced or cancelled completely but the employee has already reported to work at the request of the employer.
If liable under the law, employers must pay the lesser of two hours of pay at an employee’s hourly wage or the total pay for the shift that was initially scheduled. However, this requirement is subject to a number of exclusions.
For example, if employers make a documented, good-faith effort to notify an employee not to report to work for a cancelled shift, the employer is not liable for these payments but may remain liable if they are unsuccessful or otherwise “prevented from making the notification for any reason” and the employee does actually report to work before they can be notified.
Employers are also not liable if the employee is not required to work or is unable to work due to adverse weather conditions; a natural disaster or civil emergency; or in the event of an illness, medical condition or workplace injury.
Further, employers are exempt from the law if they do not employ at least 10 employees in their ordinary course of business for more than 120 days in a calendar year.
Agricultural employees
LD 589 establishes a minimum wage for agricultural employees of $14.65 per hour, increased by cost of living increases as defined in the law.
Photo / Courtesy of Murray Plumb & Murray
Ryan Morse
Effectively, the law adds agricultural workers to the definition of ‘employee’ under current Maine minimum wage laws, where agricultural workers were originally excluded except in specific circumstances.
The law does exclude family members residing with and dependent on the employer from this definition.
Use of AI chatbots
Many states have begun to regulate artificial intelligence in diverse ways, and now Maine is added to that list.
With LD 1727, businesses or individuals may not engage in trade or commerce with consumers in a manner that “may” mislead or deceive a reasonable consumer into believing they are engaging with a human being, unless the consumer is clearly and conspicuously notified that they are not, in fact, engaging with a human being.
This covers any software application, web interface or computer program that simulates human conversation and interaction in text or spoken communications.
Seed capital tax credit
Maine’s Seed Capital Tax Credit Program encourages equity investments in Maine businesses, directly and through private venture capital funds.
LD 125 increases the seed capital tax credit cap from $5 million to $10 million each year for investments made in calendar years beginning in 2027. There are specific caps in place for years before 2027.
Investors should speak with a tax professional if they are interested in taking advantage of the Maine Seed Capital Tax Credit.
What else is on the horizon
Photo / Jim Neuger
The rotunda of the Maine State House in Augusta.
While several important laws are already set to take effect this fall, Maine’s Legislature has also carried over a number of proposed bills into the 2026 session that business owners, employers and investors should keep on their radar.
These include potential new laws addressing employer surveillance, flexible work schedules and pay range disclosures, as well as elective tax credits for pass-through entities, prohibitions on indemnification agreements and data privacy laws.
These bills signal the Legislature’s attention to a broad range of issues. Business owners, employers and investors should remain attentive to these bills as they move through the legislative process, remaining flexible and prepared for any impact the bills may have in the future.
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