Minnesota Minimum Wage Increases Jan 1

ST. PAUL, Minn. – Minnesota’s minimum-wage rates will increase on Jan. 1, 2018, according to the state Department of Labor and Industry.

Minimum wage rates as of Jan. 1 will increase from $9.50 to $9.65 an hour for large employers, and from $7.50 to $7.87 for other state minimum wages.

The rate increase is to adjust for inflation.

“In 2014, I worked with the Legislature to raise the minimum wage in Minnesota. Now, that law demonstrates its full benefit, as incomes rise for more than 250,000 Minnesotans and their families, who are working hard to lift themselves out of poverty,” stated Gov. Mark Dayton.

According to the Dept. of Labor and Industry, an estimated 250,000 hourly workers earn less than $9.65 an hour.

As of Jan. 1, 2018:

  • Large employers must pay at least $9.65 an hour when the employer’s annual gross revenues are $500,000 or more.
  • Small employers must pay at least $7.87 an hour when the employer’s annual gross revenues are less than $500,000.
  • The training wage rate, $7.87 an hour, may be paid to employees younger than 20 years of age for the first 90 consecutive days of employment.
  • The youth wage rate, at least $7.87 an hour, may be paid to employees younger than 18 years of age.
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