Author Brooke Haley is the Co-Chair of Preti’s Employment Law Group
Maine’s new pay transparency law, LD 54 – “An Act to Require Employers to Disclose Pay Ranges and Maintain Records of Employees’ Pay Histories” is the latest in Maine’s history of equal pay protections for employees.
Beginning in 1965, Maine enacted its Equal Pay Law, prohibiting employers from paying employees differently for comparable work on the basis of sex. Over time, the law has been amended to, among other things, recognize defenses such as seniority and merit systems, prohibit retaliation against employees who seek to enforce equal pay rights, prohibit employers from asking applicants about their salary history until after a job offer that includes compensation has been negotiated, protect employees’ rights to discuss wages, and prohibit pay discrimination based on race, in addition to sex.
While Maine employers still may not inquire as to an applicant’s salary history, now, effective July 29, 2026, Maine employers with 10 or more employees must affirmatively include a statement on any job posting with the prospective range of pay the employer will offer to a successful candidate.
A “posting” is considered any solicitation intended to recruit applicants for a specific available position and includes qualifications for desired applicants. This obligation applies whether the posting is electronic or in hard copy, and whether the posting is managed directly by the employer or indirectly through a third party.
The law defines “range of pay” as:
The range of pay that an employer anticipates relying on in setting wages for a position, including, but not limited to:
- Any applicable pay scale;
- A previously determined range of wages for the position;
- The actual range of wages for those currently holding equivalent positions; or
- The budgeted amount for the position.
Range of pay does not include compensation based solely on commission. In the event a position is compensated solely by commission, the job posting should contain a statement to that effect.
The law requires an employer, upon an existing employee’s request, to disclose the pay range the employer offers for the position the employee currently holds.
Qualifying employers must maintain a record of each employee’s job title and pay history during their employment and for three years after separation, for any reason.
The pay transparency mandated created by LD54 is codified at 26 M.R.S.A. § 622-A. Violations of the pay transparency requirement may result in a fine between $100-$500 for each violation. Employers should take compliance seriously, as the new law provides for immediate funding for a new Department of Labor inspector position to enforce the required pay range disclosures and pay history record retention.
Action Items for Employers
- Review compensation structures to determine whether salary ranges are clearly defined, consistently applied, supported by data, and appropriately documented.
- Audit and update current internal and external job postings for compliance.
- Contact recruiters and any other third parties posting jobs on behalf of your company to ensure compliance.
- Establish record keeping and retention practices.
- Prepare Human Resources representatives and hiring managers on how to discuss pay ranges and how to respond to pay questions.
- Conduct internal pay equity reviews to identify any unexplained pay disparities or inconsistent compensation practices, and to support long term recruiting and retention goals.