Portland emergency minimum wage ordinance’s validity, effective date affirmed

Portland’s emergency minimum wage law is valid and takes effect on January 1, 2022, the Maine Supreme Court recently decided, affirming a lower court ruling. Should a state of emergency be declared in the future, the new law will affect public and private organizations with employees in the city. In the meantime, labor shortages (rather than the legislation) may drive hourly wages up.

How we got here

In November 2020, Portland voters approved an initiative to amend the city’s minimum wage ordinance, incrementally increasing the regular minimum wage on an annual basis and adding an “emergency pay” provision. Under the new law, employers must pay Portland employees at least 1.5 times the regular minimum wage (currently $18 per hour) during a state of emergency declared by either the city or the governor.

Days after voters approved the initiative, the city of Portland announced it wouldn’t enforce the new law until January 1, 2022, stoking a hot-button issue. With the COVID-19 pandemic in full swing, many voters assumed essential workers would immediately receive the emergency pay. On the other hand, many employers worried they couldn’t afford to hand out the higher wages.

Legal framework and opinion

The Portland Regional Chamber of Commerce, along with a group of local businesses, challenged the initiative in court. They argued (1) it was invalid under the Maine Constitution and the city code, and (2) even if it were valid, emergency pay wouldn’t take effect until January 1, 2022.