January 8, 2019

New Minnesota Minimum Wage Effective January 1, 2019

Did you know that Minnesota’s minimum wage increased on January 1, 2019?  It did.  Under Minnesota law, the state minimum wage increases every year based on inflation.  For 2019, the following Minnesota minimum wage rates are in effect:

  • $9.86 per hour for large employers (up from $9.65)
  • $8.04 for small employers (up from $7.87)
  • The 90-day training wage (for people under 20 years old) and the youth (under age 18) minimum wage also increased to $8.04 (up from $7.87)

For purposes of Minnesota’s minimum wage, a large employer is defined as having annual gross revenues of $500,000 or more and a small employer is defined as having annual gross revenues of less than $500,000.

For individuals who work in Minneapolis, they are subject to the Minneapolis minimum wage ordinance, which minimum wage rates are higher than those required by the State.  See my blog from last year on the Minneapolis Minimum Wage Ordinance.  St. Paul recently passed its own minimum wage ordinance which will take effect in 2020.

Action Item for Employers

With the start of a new year, now is a good time for businesses to review their wage and hour practices to ensure they are in compliance with all applicable laws.