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Minnesota’s minimum wage will increase for the first time since 2005. The law phases in the new minimum wage over the next several years as shown below:
The Details
Businesses with $500,000 or More in Revenue:
The minimum wage for businesses with annual gross revenue of $500,000 or more will increase to:
- $8.00 per hour on August 1, 2014;
- $9.00 per hour on August 1, 2015; and
- $9.50 per hour on August 1, 2016.
These employers may pay the minimum wage for businesses with annual gross revenue of less than $500,000 (see below) to employees under the age of 18, and to employees under the age of 20 during their first 90 days of employment.
Businesses with Less than $500,000 in Revenue:
The minimum wage for businesses with annual gross revenue of less than $500,000 will increase to:
- $6.50 per hour on August 1, 2014*;
- $7.25 per hour on August 1, 2015; and
- $7.75 per hour on August 1, 2016.
Beginning January 1, 2018 the state's minimum wage will be adjusted each year for inflation.
* Note: All employers covered by the federal Fair Labor Standards Act (FLSA) must pay employees at least the federal minimum wage, which currently is $7.25 per hour.
Practical Impact
Minnesota employers should ensure that all non-exempt employees are paid at least the minimum wage per hour. Employers should also ensure that an up-to-date minimum wage notice is posted in the workplace.
As always, feel free to contact your Human Resource Business Partner if you have any questions.
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