Minnesota’s Minimum Wage Increasing to $10.33 an Hour

Update Applicable to:

All employers in Minnesota.

What happened?

On August 19, 2021, the Minnesota Department of Labor and Industry announced an increase to the minimum wage rate.

What are the details?

The increase to the minimum wage rates will be effective January 1, 2022. The rate increase will be dependent on certain factors. The increased minimum wage rates are as follows:

• Large employers must pay at least $10.33 an hour when an employer’s annual gross revenues are $500,000 or more.
• Small employers must pay at least $8.42 an hour when an employer’s annual gross revenues are less than $500,000.
• The training wage rate, $8.42 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, $8.42 an hour, may be paid to employees younger than 18 years of age.

The notice of the minimum wage increase can be read here.

What do employers need to do?

Employers should review the information and update their payroll processing policies to be in compliance once the increase becomes effective.