Effective August 1, 2016, the minimum wage in the state of Minnesota will increase.

For Small Employers, the minimum wage will increase from $7.25 to $7.75 per hour.

For Large Employers, the minimum wage will increase from $9.00 to $9.50 per hour.

The Annual Threshold for Minimum Wage Rates is $500,000

SMALL EMPLOYER

  • Any enterprise with annual gross revenue of less than $500,000 must pay at least $7.75 an hour.

LARGE EMPLOYER

  • Any enterprise with an annual gross revenue of $500,000 or more must pay at least $9.50 an hour.

If you’re not sure whether you are a small or large employer, please follow this link to the Minnesota Department of Labor & Industry’s website: http://www.dli.mn.gov/LS/Pdf/minwage_er_size.pdf

STATE AND FEDERAL MINIMUM-WAGE LAW

  • There are both state-minimum-wage laws and federal-minimum-wage laws.
  • The Minnesota state minimum wage is higher than the federal minimum wage, so employees who are covered by both laws must be paid the higher state minimum wage.
  • Minimum-wage rates apply to all hours worked, whether part time or full time.
  • Employees must be paid at least the current minimum-wage rate, no matter how they are paid.

If you have any additional questions, please follow this link to the Minnesota Department of Labor & Industry’s website: http://www.dli.mn.gov/LS/MinWage.asp