Minnesota's minimum wage will increase on January 1, 2021 as a result of an annual adjustment for inflation.
Large employers (defined as those with annual gross revenue of $500,000 or more) must pay non-exempt employees in Minnesota at least $10.08 per hour beginning January 1, 2021. The minimum wage for smaller employers will be $8.21 per hour.
Regardless of the size of the employer, a minimum wage of $8.21 per hour may be paid to workers under the age of 20 during their first 90 days of employment and to workers under the age of 18.
Minneapolis and St. Paul:
The cities of Minneapolis and St. Paul have set their own minimum wage rates, which differ based on the number of employees the employer has. If an employee is covered by both the state and city minimum wage, the employee is entitled to the higher rate. In Minneapolis, this means the state's new minimum wage rates will not apply to work performed in the city, because the city's minimum is already higher than the state's 2021 minimum wage.
In St. Paul, the situation is more complicated. The applicable minimum wage in the city is summarized below:
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Minimum Wage in St. Paul
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Date
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5 or fewer employees
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6 - 100 employees
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101 - 10,000 employees
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Current
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$10.00 (if revenue is $500k or more)
$9.25 (if revenue is less than $500k)
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$10.00 (regardless of revenue)
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$11.50
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1/1/21
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$10.08 (if revenue is $500K or more)
$9.25 (if revenue is less than $500k)
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$10.08 (if revenue is $500k or more)
$10.00 (if revenue is less than $500k)
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$11.50
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7/1/21
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$10.08 (if revenue is $500k or more)
$10.00 (if revenue is less than $500k)
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$11.00
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$12.50
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Compliance Recommendations:
Minnesota employers must meet the new minimum wage requirements by January 1, 2021 and post an updated minimum wage notice in a conspicuous area of the workplace. Please contact your dedicated service professional with any questions.