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Minimum-wage rate to be adjusted for inflation as of Jan. 1, 2020

Minnesota's minimum-wage rates will be adjusted for inflation Jan. 1, 2020, to $10 an hour for large employers and $8.15 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 1.41 percent.

Minimum-wage rates

Provision Amount as of Jan. 1, 2020
Large-employer wage $10 an hour
Small-employer wage $8.15 an hour
90-day training wage (under 20 years of age) $8.15 an hour
Youth wage (under 18 years of age) $8.15 an hour


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

  • 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).

  • Under Minnesota Statutes 177.28, the Department of Labor and Industry is authorized to issue a permit to a disabled worker (performance-limited employee) unable to earn the state minimum-wage, to work at a wage commensurate with his or her ability. View the Disabled-worker employment information guide.

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

For more information

Contact us at, 651-284-5070 or 800-342-5354.