Show-Up Pay: New State Law Requires Compensation for Reporting to Work

Under a new law in Maine, covered employers are now required to provide compensation — or show-up pay — to employees who report to work but have their shifts canceled or reduced.

Finance teams should anticipate adjustments to payroll processes and labor cost tracking as a result of this law.

In passing this legislation, Maine joins a handful of states that require show-up pay, also known as reporting time pay, including California, Connecticut, District of Columbia, Massachusetts, New Hampshire, New Jersey, New York and Rhode Island.

Consider benchmarking potential payroll impacts against these states using historical labor cost data, payroll trends, and typical shift cancellation patterns to better inform budgeting and forecasting.

Here are the details for employers located or doing business in Maine.

Details of the New Law

Gov. Janet Mills signed the legislation this summer – and it went into effect on Sept. 24, 2025. Here’s what you need to know.

Who Has to Pay?

LD 598 – also known as the “show-up pay” law – applies to employers with at least 10 employees for more than 120 days in a calendar year. Seasonal employers and public employers are specifically excluded.

Finance tip: Flag employees covered under the 10+ employee threshold for accurate payroll tracking.

How Much Show-Up Pay is Required? 

If an employee reports to work for a scheduled shift that is cut short or canceled, the employer must provide show-up compensation equal to either two hours of compensation at the employee’s regular rate of pay or the amount the employee would have received for the full scheduled shift, whichever is less.

Finance tip: Ensure payroll systems are configured to calculate the lesser of two hours or the full scheduled shift for each applicable employee.

Exceptions to the Law 

Show-up pay for reporting to work is not required in cases of adverse weather conditions, natural disasters, civil emergencies, illness or workplace injury.

Finance tip: Track exceptions to ensure no overpayments occur and maintain documentation for payroll reconciliation.

Notice

The new law includes a partial exception if an employer “makes a documented, good-faith effort” to notify an employee about the reduced or canceled shift before the person reports to work. In such cases, the employer is not liable for show-up pay. 

However, if an employer’s attempt to notify the employee is unsuccessful and the employee reports to work, show-up pay is required.

Here’s a sticking point: The law authorizes the state department of labor (DOL) to adopt, implement and enforce rules. Pending guidance from the DOL could affect payroll calculations and reporting requirements, creating potential financial exposure if adjustments are missed.

Finance tip: Monitor DOL updates for accurate labor cost tracking and risk mitigation.

Action Steps for Finance

Finance teams should update systems and processes to ensure accurate calculation and tracking of show-up pay under the new law.

• Update payroll systems. Configure systems to automatically flag canceled or reduced shifts and calculate the correct show-up pay amount
• Track labor costs. Include tracking for budgeting and forecasting purposes, estimating monthly and quarterly payroll impacts
• Reconcile payments. Ensure all show-up pay is documented and reconciled for audits and reporting accuracy, and
• Coordinate with HR. Verify employee eligibility and documentation in a timely manner to meet payroll deadlines and ensure accurate pay processing.

Forward-Looking Considerations

Tracking trends and the financial impact of show-up pay provides insight into its effect on overall labor costs and identifies potential payroll variances or compliance risks. Reviewing budgets and forecasts ensures potential payroll changes are incorporated and supports accurate financial planning.

Collaborating with HR is essential to implement internal controls that support compliance and payroll accuracy. These steps enable Finance to support strategic decision-making by providing reliable cost data, ensuring compliance, and informing staffing and budget planning.