November 2020

State Updates

 

Minnesota to increase minimum wage for 2021

10/01/2020

Author: ADP Admin/Wednesday, September 30, 2020/Categories: Compliance Corner , State Compliance Update, Minnesota

Minnesota's minimum wage will increase on January 1, 2021 as a result of an annual adjustment for inflation.

Large employers (defined as those with annual gross revenue of $500,000 or more) must pay non-exempt employees in Minnesota at least $10.08 per hour beginning January 1, 2021. The minimum wage for smaller employers will be $8.21 per hour.

Regardless of the size of the employer, a minimum wage of $8.21 per hour may be paid to workers under the age of 20 during their first 90 days of employment and to workers under the age of 18.


Minneapolis and St. Paul:

The cities of Minneapolis and St. Paul have set their own minimum wage rates, which differ based on the number of employees the employer has. If an employee is covered by both the state and city minimum wage, the employee is entitled to the higher rate. In Minneapolis, this means the state's new minimum wage rates will not apply to work performed in the city, because the city's minimum is already higher than the state's 2021 minimum wage.

In St. Paul, the situation is more complicated. The applicable minimum wage in the city is summarized below:

Minimum Wage in St. Paul

Date

5 or fewer employees

6 - 100 employees

101 - 10,000 employees

Current

$10.00 (if revenue is $500k or more)

$9.25 (if revenue is less than $500k)

$10.00 (regardless of revenue)

$11.50

1/1/21

$10.08 (if revenue is $500K or more)

$9.25 (if revenue is less than $500k)

$10.08 (if revenue is $500k or more)

$10.00 (if revenue is less than $500k)

$11.50

7/1/21

$10.08 (if revenue is $500k or more)

$10.00 (if revenue is less than $500k)

$11.00

$12.50


Compliance Recommendations:

Minnesota employers must meet the new minimum wage requirements by January 1, 2021 and post an updated minimum wage notice in a conspicuous area of the workplace. Please contact your dedicated service professional with any questions.

Number of views (215)/Comments (0)

Recent State Updates

Washington increases minimum wage for 2021 - Wednesday, November 4, 2020
South Dakota increases minimum wage for 2021 - Wednesday, November 4, 2020
Seattle increases minimum wage - Wednesday, November 4, 2020
Philadelphia amends and expands Paid Leave law - Wednesday, November 4, 2020
 

© Copyright 2016 ADP LLC. 10200 Sunset Drive | Miami, FL 33173

You are receiving this email because you are a client of ADP TotalSource. The ADP logo, ADP, and ADP TotalSource® are registered trademarks of ADP, LLC. ADP - A more human resource. is a service mark of ADP, LLC.