Minnesota's minimum-wage rates will be adjusted for inflation beginning Jan. 1, 2020, to $10 an hour for large employers and $8.15 an hour for other state minimum wages.
"This increase is a positive step for workers, yet more work needs to be done to ensure workers earn a living wage to support their families," said Nancy Leppink, commissioner, Minnesota Department of Labor and Industry. "Minnesota families of three or more will remain at or below the poverty level even though an adult family member is working full time at the minimum wage, forcing many families to seek assistance to make up the living-wage gap."
The current large-employer minimum wage, $9.86, will increase by 14 cents to $10. Other state minimum wages, including the small-employer, youth and training wages, as well as the summer work travel exchange visitor program wage, which are all currently $8.04, will increase by 11 cents to $8.15.
As of Jan. 1, 2020:
- Large employers must pay at least $10 an hour when the employer's annual gross revenues are $500,000 or more.
- Small employers must pay at least $8.15 an hour when the employer's annual gross revenues are less than $500,000.
- The training wage rate, $8.15 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, $8.15 an hour, may be paid to employees younger than 18 years of age.
For 2020, an estimated 206,000 jobs will pay the $10 or $8.15 state minimum-wage rates. These rates will not apply to work performed in the cities of Minneapolis and St. Paul, which have higher minimum-wage rates.
Projected number of minimum-wage jobs, 2020 Jobs in state of Minnesota (not including Minneapolis and St. Paul)
- Total jobs, 2020 = 2,425,000
- Minimum-wage jobs, 2020 ($10 and $8.15) = 206,000 (8.5 percent)