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Minimum-wage rate to be adjusted for inflation as of Jan. 1, 2021

Minnesota's minimum-wage rates will be adjusted for inflation Jan. 1, 2021, to $10.08 an hour for large employers and $8.21 an hour for other state minimum wages.

Under Minnesota law, the commissioner of the Department of Labor and Industry is required to determine and announce the inflation-adjusted minimum-wage rate each year by Aug. 31. This past year, the change in the price index used for this purpose was an increase of .08%.

Minimum-wage rates

Provision Amount as of Jan. 1, 2020 Amount as of Jan. 1, 2021
Large-employer wage $10.00 an hour $10.08 an hour
Small-employer wage $8.15 an hour $8.21 an hour
90-day training wage (under 20 years of age) $8.15 an hour $8.21 an hour
Youth wage (under 18 years of age) $8.15 an hour $8.21 an hour

Resources

State and federal minimum-wage law

  • The state minimum-wage is higher than the federal minimum-wage, so employees who are covered by both laws must be paid the higher state minimum-wage.

  • 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 the minimum wage per hour, plus any tips the employee might earn.

Exempt employees

Calculating an enterprise's gross annual revenue

  • Review the enterprise's past four quarterly tax estimates or the previous year audit statement.

  • Add up the gross revenue for the four most recent quarters.

  • Exclude excise taxes that are listed separately.

  • If the combined amount of gross revenue is more than $500,000, pay the large Minnesota employer
    minimum wage rate.

For more information

Contact us at dli.laborstandards@state.mn.us, 651-284-5070 or 800-342-5354.