As it now does every January to account for inflation, Minnesota’s minimum wage increased on January 1, 2021. For 2021, the following Minnesota minimum wage rates are in effect:
- $10.08 per hour for large employers
- $8.21 for small employers
- The 90-day training wage (for people under 20 years old) and the youth (under age 18) minimum wage also increased to $8.21
For purposes of Minnesota’s minimum wage, a large employer is one with annual gross revenues of $500,000 or more and a small employer is a business with annual gross revenues of less than $500,000.
For individuals who work in Minneapolis or St. Paul, they are subject to the Minneapolis and St. Paul minimum wage ordinances, which minimum wages rates are higher than those required by the State. See my June 22, 2020, blog for those rates, which will next increase on July 1, 2021.
Action Item for Employers With the start of a new year, now is a good time to review your wage and hour practices to ensure they are in compliance with all applicable laws. When doing so, do not forget about the still relatively new Minnesota and Minneapolis wage theft laws, both of which require that affected employees receive written notice of any wage changes.
