When doing business in Minnesota as a small or large employer or someone working as an employee for a small business or large company, it is critically important to understand and know the law when it comes to paying employees or being paid by your employer and knowing your workers’ rights.
Each state has a specific minimum wage and many of them are adjusted based on the consumer price index for the individual state economy as well as inflation. This page provides valuable information regarding the minimum wage in Minnesota and what the minimum wage plans are for the future of Minnesota.
What is the Minnesota minimum wage in 2021?
In 2021, the Minnesota minimum wage was increased to $10.08 per hour for large employers and $8.21 per hour for smaller businesses.
To be a ‘large employer’ the business must have annual gross revenue in excess of $500,000, and to be a ‘small employer’ the business must be grossing less than $500,000 in revenue per annum. Both minimum wage rates are higher than the federal minimum wage, the minimum wage currently sits at $7.25 and hasn’t increased since 2009.
Did the Minnesota Minimum Wage Go Up?
The graphic below highlights the Minnesota minimum wage over the past several years. The minimum wage did go up in 2021 from $10.00 per hour (in 2020) to $10.08 in 2021.
Minnesota Minimum Wage 2021
2021 has witnessed another increase to the Minnesota minimum wage, moving from $10.00 to $10.08 for large businesses and increasing to $8.21 from $8.15 for smaller businesses. The state of California shares the same unique minimum wage structure where the size of the business influences the minimum wage paid to their employees, this is considered by some a fairer way to structure a two-tiered minimum wage.
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This page will be updated frequently as and when the Minnesota minimum wage increases. If you are seeking more information on minimum wage laws, and workers’ rights in Minnesota, take a look at the Minnesota Department of Labor and Industry website.
Minnesota, much like other states, has specific minimum wage laws for different fields of employment. However, unlike most other states, the rules for tipped employees are slightly different as employers cannot take a tip credit against the minimum wages, an employee has to be paid the minimum wage at the very least per hour, plus tips that they may earn.
The table below provides the different variations of the Minnesota minimum wage in 2021.
|Minimum Wage Description||Year||$ Wage Amount|
|Large Employer Wage||2021||$10.08|
|Small Employer Wage||2021||$8.21|
|90 Day Training Wage (Under 20 Years)||2021||$8.21|
|Youth Wage (Under 18 Years)||2021||$8.21|
Just like many other states, there is a training minimum wage for employees under the age of 20 and in their first 90 days of employment, this amounts to $8.15 per hour for large businesses. For more information on the minimum wage in all 50 states, check out our US minimum wage by state table where you will find them all listed in alphabetical order.
Minnesota Minimum Wage History
The following table displays the Minnesota minimum wage history for large businesses, from 2008 to 2021. It shows the hourly min wage increase for Minnesota each year in monetary terms and also in percentage terms.
|State||Wage||Year||$ Wage Increase||% Increase|
|Minnesota Minimum Wage 2021||$10.08||2021||$0.08||0.8%|
|Minnesota Minimum Wage 2020||$10.00||2020||$0.14||1.4%|
|Minnesota Minimum Wage 2019||$9.86||2019||$0.21||2.2%|
|Minnesota Minimum Wage 2018||$9.65||2018||$0.15||1.58%|
|Minnesota Minimum Wage 2017||$9.50||2017||$0||0%|
|Minnesota Minimum Wage 2016||$9.50||2016||$0.50||5.5%|
|Minnesota Minimum Wage 2015||$9.00||2015||$1.00||12.5%|
|Minnesota Minimum Wage 2014||$8.00||2014||$0.75||10.3%|
|Minnesota Minimum Wage 2013||$7.25||2013||$0||0%|
|Minnesota Minimum Wage 2012||$7.25||2012||$0||0%|
|Minnesota Minimum Wage 2011||$7.25||2011||$0||0%|
|Minnesota Minimum Wage 2010||$7.25||2010||$0||0%|
|Minnesota Minimum Wage 2009||$7.25||2009||$1.10||17.9%|
|Minnesota Minimum Wage 2008||$6.15||2008||$0||0%|