A Maine employment contract is used during the hiring process to set the terms and conditions of a working relationship between a new employee and an employer. The document specifies whether the employee is hired for a fixed period or if the employment period is “at-will” and may be terminated by either party at any time. Payment terms and any commissions or bonuses the employee is entitled to are also detailed in the agreement, as are the duties and obligations they must fulfill to earn compensation.
Before signing, the newly hired party should carefully review the contract and verify that they are satisfied with its terms and that they fully understand any non-compete or confidentiality clauses contained therein.
Independent Contractor Agreement – Used to hire freelancers for their services on projects of various lengths.
Subcontractor Agreement – General contractors use this document to hire subcontractors to handle specific tasks on a large project.
- Labor Statutes: Title 26, Chapter 7 – Employment Practices
- Definition of Employee: § 591(1)
- Minimum Wage: $12/hr (§ 664(1)), will increase to $12.75/hr as of January 1st, 2022 (Department of Labor), and will increase every subsequent year based on the increase in the cost of living (if any).
- Overtime: One and a half (1.5) times the standard wage (§ 664(3)).
- Record Keeping: Employers are required to keep a record showing the date and amount paid to each employee. According to the US Department of Labor, employee records must be maintained by the employer for a period of three (3) years (§ 622).
Permitted? Yes, “at-will” employees may be terminated for any reason unless specifically prohibited by law or by a contract (Maine Department of Labor). Maine law prohibits the termination of at-will employees for the following:
- Proceedings, exercising of rights/protections, discussions, or complaints (§ 644).
- The reporting of unsafe work practices, violation of state law, court appearances, or reporting of the mistreatment of a medical patient (§ 833).