Minimum wage in Minnesota
Minimum-wage rate to be adjusted for inflation as of Jan. 1, 2023
Minnesota's minimum-wage rates will be adjusted for inflation Jan. 1, 2023, to $10.59 an hour for large employers and $8.63 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%.
|Provision||Amount as of Jan. 1, 2022||Amount as of Jan. 1, 2023|
|Large-employer wage||$10.33 an hour||$10.59 an hour|
|Small-employer wage||$8.42 an hour||$8.63 an hour|
|90-day training wage (under 20 years of age)||$8.42 an hour||$8.63 an hour|
|Youth wage (under 18 years of age)||$8.42 an hour||$8.63 an hour|
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.
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.
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.
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 email@example.com, 651-284-5075 or 800-342-5354.