Overview of Minnesota's Minimum Wage Requirements
As of January 1, 2024, the minimum wage requirements in Minnesota have been revised. For large employers, the minimum wage has increased from $10.59 to $10.85 per hour. Small employers have seen a rise in the minimum wage from $8.63 to $8.85 per hour. The 90-day training wage for individuals under 20 years of age and the youth wage for those under 18 years of age have also been adjusted from $8.63 to $8.85 per hour.
In the cities of Minneapolis and St. Paul, the minimum wage situation is more nuanced. Large employers in Minneapolis and macro employers in St. Paul reached a minimum wage of $15.00 per hour in 2022. Large employers in St. Paul reached the same rate in 2023. Other employers of different sizes in Minneapolis and St. Paul will reach $15.00 per hour in various years from 2024 to 2027, and will be adjusted for inflation thereafter.
Understanding Local Minimum Wage Variations
In Hennepin County, specifically for the city of Minneapolis, large employers (more than 100 employees) reached a minimum wage of $15.00 an hour in 2022. For small employers (with 100 employees or fewer), the minimum wage will reach $15.00 an hour in 2024. These rates are adjusted annually for inflation.
In Ramsey County, specifically for the City of Saint Paul, the minimum wage requirements are determined by the size of the business. As of 2024, macro businesses and City of Saint Paul employees (more than 10,000 employees) have a minimum wage of $15.57. Large businesses (101-10,000 employees) also have a minimum wage of $15.57. Small businesses (6-100 employees) have a minimum wage of $14.00, while micro businesses (5 or fewer employees) have a minimum wage of $12.25.
Minimum Wage Eligibility and Exemptions
In the state of Minnesota, the minimum wage applies to most employees, with certain exceptions. As of January 1, 2024, the minimum wage is set at $10.85 per hour for large businesses, those with annual gross revenues of $500,000 or more, and $8.85 per hour for small businesses, those with annual gross revenues of less than $500,000.
However, both federal and state wage and hour laws in Minnesota allow employers to exempt certain employees from overtime and minimum wage requirements. The Minnesota Fair Labor Standards Act contains exemptions for more than 20 types of workers. These include nonprofit volunteers, elected officials, police and firefighters, seasonal fair, carnival and ski facility workers (overtime exempt only), clergy working in schools, hospitals or nonprofits operated by a church or religious order, certain agricultural workers if paid on a salary basis, outside salespersons, and executive, administrative and professional employees.
Minimum Wage Considerations and Compliance Tips
In Minnesota, food business employers must adhere to several key legal and compliance considerations regarding minimum wage and employee rights. Firstly, all workers must be paid at least the minimum wage for all hours worked, including preparation time, on-the-job training, opening and closing times, and required meetings.
Overtime pay is also required for all the hours they work, and employers must pay one-and-one-half times the regular rate of pay for overtime hours worked. Wages must be paid at least once every 31 days, and final wages must be paid promptly, depending on if the worker quit or was fired. Tips received by a direct service employee, such as a server, generally belong to the employee who received them, except under limited circumstances. Employers are prohibited from taking a tip credit against the minimum wage, meaning that tips received by an employee cannot be counted toward the payment of minimum wage.
FAQs
- What are the current minimum wage requirements in the Minnesota state and trends? As of January 1, 2024, the minimum wage requirements in Minnesota have been revised. For large employers, the minimum wage has increased from $10.59 to $10.85 per hour. Small employers have seen a rise in the minimum wage from $8.63 to $8.85 per hour.
- What are the minimum wage requirements in Hennepin County, Minnesota? As of 2024, the minimum wage requirements in Hennepin County, Minnesota, specifically for the city of Minneapolis, are as follows: For large employers (more than 100 employees), the minimum wage reached $15.00 an hour in 2022. For small employers (with 100 employees or fewer), the minimum wage will reach $15.00 an hour in 2024.
- Who is eligible for minimum wage in Minnesota, and are there any exemptions? In the state of Minnesota, the minimum wage applies to most employees, with certain exceptions. As of January 1, 2024, the minimum wage is set at $10.85 per hour for large businesses, those with annual gross revenues of $500,000 or more, and $8.85 per hour for small businesses, those with annual gross revenues of less than $500,000.
Information Source Links
- Minnesota Minimum Wage Report 2023
- Minnesota Minimum Wage Report 2021
- Wage Indicator
- Minnesota's minimum wage laws
- City Minimum Wage Ordinance
- City Minimum Wage Rules
- Minnesota Department of Labor and Industry's guide on minimum wage laws
- Minneapolis Minimum Wage website
- Minnesota Fair Labor Standards Act
- Minnesota Rules 5200.0180
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