Severance Pay Calculator — Maine

Severance Pay Laws in Maine

Maine joins New Jersey and Hawaii as one of the few US states with a statutory severance pay mandate. Under the Maine Severance Pay Statute (26 M.R.S. §625-B), employers that have maintained 100 or more employees in Maine for three years and that close, relocate, or terminate operations affecting at least 100 employees must pay severance of one week of pay for each year of service. The mandate is independent of and on top of the federal WARN Act's notice requirement, which still applies to Maine employers meeting federal coverage thresholds.

Final wages in Maine are governed by 26 M.R.S. §626, which requires payment of all earned wages — including accrued vacation that is payable under company policy — no later than the next established payday following termination, or within two weeks of an employee demand for payment. The Maine Department of Labor enforces the statute, and an employee may recover unpaid wages plus liquidated damages of up to twice the unpaid amount, plus attorney's fees, for willful nonpayment.

On non-competes, 26 M.R.S. §599-A (effective 2019) prohibits non-competes for employees earning at or below 400 percent of the federal poverty level — currently around $58,000 per year for an individual. For employees above that threshold, non-competes must protect a legitimate business interest, be reasonable in scope and duration, and be provided to the employee at least three business days before signing. Courts apply the statute strictly.

On discrimination, the Maine Human Rights Act (5 M.R.S. §4551 et seq.) applies to all employers regardless of size and provides protections across a broad list of protected categories including sexual orientation, gender identity, marital status, and credit history. The Maine Human Rights Commission administers claims with a parallel private right of action that provides uncapped compensatory damages plus attorney's fees.

Maine's economy is anchored by healthcare, manufacturing, tourism, forestry, and maritime industries. The severance pay mandate, combined with the broad MHRA discrimination protections and the non-compete restrictions, makes Maine one of the more employee-protective states in the country on layoff terms.

How Much Severance Are Maine Workers Owed?

Maine employees at large employers covered by the Severance Pay Statute receive at least one week of severance per year of service as a statutory floor. On top of that, healthcare and finance employers in the Portland metro produce packages materially above the statutory floor for senior individual contributors. Tourism, forestry, and manufacturing come in closer to the floor.

Industry Benchmarks for Maine

In Maine, Portland healthcare and finance pay above the modeled midpoint; tourism and forestry come in closer to the floor.

Frequently Asked Questions — Maine Severance