Minnesota’s minimum wage goes up August 1

Minimum-wage rates in Minnesota will increase on August 1, as part of a scheduled increase put in place by Ch. 166 (H. 2091), L. 2014.

To help employers understand the requirements, the Minnesota Department of Labor and Industry (DLI) has updated its minimum-wage fact sheets online at http://www.dli.mn.gov/LS/MinWage.asp.

The following rates apply effective as of August 1, 2016:

• Large employers must pay at least $9.50 an hour (annual gross volume of sales made or business done of $500,000 or more).
• Small employers must pay at least $7.75 an hour (annual gross volume of sales made or business done of less than $500,000).
• The training wage rate is $7.75 an hour (90-day training rate paid to employees who are younger than 20 years of age).
• The youth wage rate is $7.75 an hour (may be paid to employees younger than 18 years of age).

Minimum-wage rates apply to all hours worked, whether part time or full time. Employees must be paid at least the minimum wage rate, no matter how they are paid. No employer may take a tip credit against wages in Minnesota.

Examples of workers exempt from minimum wage requirements include: bona fide executive, administrative or professional workers; babysitters; and volunteers of nonprofit organizations.

The DLI has updated mandatory minimum wage posters to reflect the increases for August 1. These posters are available online at http://www.dli.mn.gov/LS/Posters.asp. (Minnesota Department of Labor and Industry, News Release, June 10, 2016, http://www.dli.mn.gov/MinWage2016.asp.)

Visit our News Library to read more news stories.