Minimum wage in Minnesota

Minimum-wage rate to be adjusted for inflation as of Jan. 1, 2022

Minnesota's minimum-wage rates will be adjusted for inflation Jan. 1, 2022, to $10.33 an hour for large employers and $8.42 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 2.5%.

Minimum-wage rates

Resources

• Minnesota's minimum wage laws

• Minimum-wage report:  Understanding the minimum wage in Minnesota, published December 2021

• Workplace posters:  Required to be displayed for employees and updated when Minnesota law changes.

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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.

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.