Minnesota Minimum Wage: Current Rates and Scheduled Increases

Minnesota's Minimum Wage at a Glance

As of January 1, 2024, Minnesota's statewide minimum wage is $13.00 per hour for large employers (annual gross revenue ≥ $500,000) and $11.00 per hour for small employers (annual gross revenue < $500,000). Both rates exceed the federal minimum of $7.25, which has not changed since 2009.

Recent History and Legislative Path

Minnesota's minimum wage has risen steadily since a 2014 law mandated annual inflation adjustments after a series of stepped increases:

• Aug 1, 2014: $8.00 (large) / $6.50 (small)
• Aug 1, 2015: $9.00 / $7.25
• Aug 1, 2016: $9.50 / $7.75
• Jan 1, 2018: $9.65 / $7.87 (first inflation adjustment)
• Jan 1, 2019: $9.86 / $8.04
• Jan 1, 2020: $10.00 / $8.15
• Jan 1, 2021: $10.08 / $8.21
• Jan 1, 2022: $10.33 / $8.42
• Jan 1, 2023: $10.59 / $8.63
• Jan 1, 2024: $13.00 / $11.00 (significant legislative boost)

Key Details for Employers and Workers

• No tip credit: Minnesota is one of seven states that prohibit employers from counting tips toward the minimum wage. Tipped employees must receive the full minimum wage plus tips.
• Youth wage: Employees under 18 may be paid $8.85/hour (large employers) or $8.63/hour (small employers) for the first 90 days of employment.
• Training wage: Employees under 20 may be paid $8.85/$8.63 for the first 90 days.
• Local ordinances: Minneapolis and Saint Paul have higher municipal minimum wages ($15.57 and $15.00+ respectively as of 2024) that supersede the state rate for work performed within city limits.
• Overtime: Non-exempt employees earn 1.5× their regular rate for hours over 48 in a workweek (Minnesota) or 40 (federal, whichever is more favorable).

Enforcement and Resources

The Minnesota Department of Labor and Industry (DLI) enforces wage laws. Workers who believe they are being underpaid can file a complaint online or call 651-284-5075. Employers can access compliance guides and posters at dli.mn.gov.

Looking Ahead

Starting January 1, 2025, Minnesota's minimum wage will resume annual inflation indexing based on the Consumer Price Index, ensuring the wage floor keeps pace with the cost of living without further legislative action.