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Labor Standards -- Minnesota's minimum-wage law

 

Provision Current law New law
Large employer wage $6.15/hour* $8.00/hour on Aug. 1, 2014
$9.00/hour on Aug. 1, 2015
$9.50/hour on Aug. 1, 2016
Small employer wage $5.25/hour $6.50/hour on Aug. 1, 2014
$7.25/hour on Aug. 1, 2015
$7.75/hour on Aug. 1, 2016
90-day training wage
(under 20 years of age)
$4.90/hour $6.50/hour on Aug. 1, 2014
$7.25/hour on Aug. 1, 2015
$7.75/hour on Aug. 1, 2016
Youth wage
(under 18 years of age)
No youth wage $6.50/hour on Aug. 1, 2014*
$7.25/hour on Aug. 1, 2015
$7.75/hour on Aug. 1, 2016
Inflation increase No inflation increases Inflation indexing begins Jan. 1, 2018

 

 

 

 

 

 

 

 

 

 

State and federal minimum-wage law

Minimum-wage law
  • There are both state-minimum-wage laws and federal-minimum-wage laws.

  • The employee is entitled to the higher of the two minimum wages when an employee is covered by both the state and federal minimum wage laws.

  • Minimum-wage rates apply to all hours worked, whether part time or full time.

  • Employees must be paid at least the current minimum-wage rate, no matter how they are paid.

Tip credit

  • No employer may take a tip credit against minimum wages in Minnesota.

  • An employee must be paid at least that minimum wage per hour plus any tips the employee might earn.

Exempt employees

  • A partial list of exempt employees includes:  bona fide executive, administrative or professional workers; babysitters; volunteers of nonprofit organizations; and employees subject to the provisions of the U.S. Department of Transportation (drivers, drivers' helpers, mechanics and loaders).

  • For a complete list of exempt employees see Minnesota Statutes 177.23, subd. 7.

Current Minnesota minimum-wage definitions until Aug. 1, 2014

  • "Large employer" is defined as any enterprise whose annual gross volume of sales made or business done is not less than $625,000.

  • "Small employer" is defined as any enterprise whose annual gross volume of sales made or business done is less than $625,000.

  • "Training wage" may be paid to new employees who are younger than age 20 during their first 90 consecutive days of employment. Permanent or current employees may not be displaced by new employees covered by the training wage.

* Federal minimum-wage rate may apply. Pay the higher amount.

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