Hiring New Employees in Maine: Legal Guidelines for Employers

Create a clear job description that outlines the position's responsibilities, required qualifications, and compensation. Ensure the job posting complies with Maine's employment laws, avoiding any discriminatory language based on protected characteristics (race, color, sex, sexual orientation, age, physical or mental disability, genetic information, religion, ancestry or national origin).

Develop an application form that collects necessary information from candidates while complying with Maine laws. Avoid questions about age, race, religion, national origin, disability status, or other protected characteristics. Maine prohibits employers from requesting salary history from prospective employees, so ensure your application form does not ask for this information.

Interview qualified candidates and select the best fit for the position. Ensure all interview questions comply with Maine employment laws and avoid questions related to protected characteristics. Document the selection process to demonstrate non-discriminatory hiring practices.

Draft an offer letter that includes the position title, start date, compensation, benefits, and any contingencies (such as background checks or drug testing). In Maine, be clear about whether the employment is at-will or for a specific term.

If applicable, prepare a formal employment contract that outlines terms and conditions of employment, including duties, compensation, benefits, work schedule, and termination provisions. Maine is an at-will employment state, but a contract can modify this relationship if desired.

If the employee will have access to confidential information, draft an NDA to protect your business's proprietary information. Ensure the agreement is reasonable in scope and duration to be enforceable under Maine law.

If applicable, draft a non-compete agreement. In Maine, non-compete agreements are prohibited for employees earning wages at or below 400% of the federal poverty level. For other employees, ensure the agreement is reasonable in geographic scope, duration, and protected interest to be enforceable. The agreement must be disclosed prior to making an offer of employment.

Create a form to obtain the candidate's consent for background checks. Maine follows the Fair Credit Reporting Act (FCRA) requirements, which mandate disclosure and authorization before conducting background checks. Maine also has 'ban-the-box' legislation that prohibits asking about criminal history on initial employment applications.

Complete any background checks, reference checks, or drug testing as specified in the offer letter. Ensure compliance with Maine laws regarding these screenings, including proper notification and consent procedures.

Federal law requires completion of Form I-9 to verify the employee's identity and authorization to work in the United States. The employee must complete Section 1 on or before their first day of work, and you must complete Section 2 within 3 business days of the employee's start date. Retain this form for the later of 3 years after the hire date or 1 year after employment ends.

Have the employee complete the federal W-4 form to determine federal income tax withholding. This form must be completed before the first payroll is processed.

Have the employee complete Maine's state income tax withholding form (Form W-4ME). This form determines state income tax withholding and must be completed before the first payroll is processed.

Create a form for employees to authorize direct deposit of their paychecks. In Maine, employers cannot require direct deposit as the only method of payment without offering alternatives.

Create a form to collect emergency contact information for the new employee. This is not legally required but is a best practice for workplace safety.

Maine law requires employers to report all newly hired or rehired employees to the Department of Health and Human Services within 7 days of hire. This can be done online through Maine's New Hire Reporting system or by submitting the New Hire Reporting Form.

Maine law requires employers to provide workers' compensation insurance for all employees. Ensure your new hire is added to your workers' compensation policy before their start date.

If this is your first employee, register with the Maine Department of Labor for unemployment insurance. If you're already registered, ensure your account is current and in good standing.

Create or update your employee handbook to include company policies, procedures, and expectations. In Maine, include required policies on sexual harassment prevention, family/medical leave, and earned paid leave. Ensure the handbook complies with Maine's specific employment laws, including the Earned Paid Leave law that requires employers with more than 10 employees to provide paid leave that can be used for any reason.

If offering benefits such as health insurance, retirement plans, or other voluntary benefits, prepare the necessary enrollment forms. Maine requires employers with 10 or more employees to provide notification about the availability of Earned Income Tax Credit.

Maine requires employers to display specific posters in the workplace, including minimum wage, workers' compensation, unemployment insurance, whistleblower protection, sexual harassment, and earned paid leave notices. Ensure all required state and federal posters are displayed in a prominent location accessible to all employees.

Schedule and conduct an orientation session to introduce the new employee to company policies, procedures, and culture. Review the employee handbook and have the employee acknowledge receipt. Provide required safety training and information about Maine's specific employment laws that affect them.

Ensure your payroll system is set up to properly withhold federal and Maine state income taxes, Social Security, and Medicare taxes. Maine has specific requirements for minimum wage ($13.80/hour as of 2023), overtime, and final wage payments.

Maine requires sexual harassment prevention training for employers with 15 or more employees. This training must be provided within one year of hire. Schedule this and any other required training for your new employee.