December 2022: Minimum Wage Increase For The State of Minnesota And Two of Its Cities

Update Applicable to:
All employers in the cities of Minneapolis, St. Paul, and the state of Minnesota.

What happened?
Beginning in 2023, the state of Minnesota and its cities, Minneapolis and St. Paul, will increase its minimum wage rate 2023.

What are the details?

Minnesota
Every year, the Minnesota Department of Labor and Industry commissioner announces the inflation-adjusted minimum wage rate. Accordingly, on January 1, 2023, the Minnesota minimum wage rate will increase from $10.33 per hour to $10.59 per hour (for large employers) and $8.42 per hour to $8.63 per hour (for small employers).

Minnesota law also mandates that employers display various workplace posters of, among other things, the current minimum wage.

In addition to the state of Minnesota’s minimum wage rate adjustments, the cities of Minneapolis and St. Paul have minimum wage rates that are set to increase—some rates in January (instead of in July, as is typically the case) and others in July.

City of Minneapolis
For Minneapolis, the minimum wage rate for small businesses (i.e., one hundred or fewer employees) will increase from $13.50 per hour to $14.50 per hour on July 1, 2023. The minimum wage rate for large businesses (i.e., more than one hundred employees) will increase from $15.00 per hour to $15.19 per hour on January 1, 2023.

Employers with Minneapolis-based employees are also required to display a workplace poster showing the city’s minimum wage rate.

City of St. Paul
For St. Paul, the situation is slightly more complex. For “macro businesses”—those with 10,001 or more employees—the minimum wage will increase from $15.00 per hour to $15.19 per hour on January 1, 2023.

For “large businesses” (101 to 10,000 employees), the minimum wage will increase from $13.50 per hour to $15.00 per hour on July 1, 2023. For “small businesses” (six to one hundred employees), the minimum wage will increase from $12.00 to $13.00 per hour on July 1, 2023. Finally, for “micro-businesses” (five or fewer employees), the minimum wage will increase from $10.75 per hour to $11.50 per hour on July 1, 2023.

St. Paul employers must display a workplace poster showing the minimum wage rates for St. Paul-based employees.

For more information, please see the links below:

Minnesota Minimum Wage Website – Minnesota Workplace Posters

City of Minneapolis Minimum Wage Website – Minneapolis Workplace Poster

City of St. Paul Minimum Wage Website – St. Paul Workplace Poster

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What do employers need to do?
Employers should carefully review the links provided above and make adjustments to their minimum wage so that they are compliant with the new wage rates of their locations come 2023.