ME Superior Court issues decision in Portland emergency minimum wage case

Last November, Portland voters approved a referendum mandating “emergency pay” for workers on-site in the city. During state and city emergencies, employees are entitled to at least 1.5 times the minimum wage. Proponents assumed the referendum would become effective within 30 days of certification, establishing an $18 minimum wage during the COVID-19 pandemic. On February 2, Justice Thomas Warren from Maine’s Superior Court ruled the referendum was constitutional but that the emergency pay doesn’t take effect until January 2022.

How we got here

From the get-go, the city of Portland interpreted the emergency pay provision to become effective at the beginning of 2022, though the group that brought the issue to the ballot insisted it was intended take effect within 30 days of certification. The Portland Regional Chamber of Commerce (PRCC) and five local businesses promptly filed suit for a declaratory judgment, challenging the referendum’s validity and seeking a ruling that the measure didn’t take effect until January 1, 2022.

In finding the emergency pay provision valid under the Maine Constitution, Judge Warren ruled municipalities may enact minimum wage ordinances, and Portland’s provision doesn’t conflict with state law. He also concluded the emergency pay provision doesn’t become effective until January 1, 2022, based on the ordinance’s plain language.