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Minimum-wage rate to be adjusted for inflation as of Jan. 1, 2020
Minnesota's minimum-wage rates was 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 |
Resources
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Minimum-wage report: Understanding the minimum wage in Minnesota, published June 2019
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Workplace posters: Required to be displayed for employees and updated when Minnesota law changes.
State and federal minimum-wage law
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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.
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Minimum-wage rates apply to all hours worked, whether part time or full time.
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Employees must be paid at least the current minimum-wage rate, no matter how they are paid.
Tip credit
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No employer may take a tip credit against minimum wages in Minnesota.
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An employee must be paid at least the minimum wage per hour, plus any tips the employee might earn.
Exempt employees
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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).
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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.
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For a complete list of exempt employees, see Minnesota Statutes 177.23, subd. 7.
For more information
Contact us at dli.laborstandards@state.mn.us, 651-284-5070 or 800-342-5354.