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What is the Minnesota Minimum Wage?

The minimum wage in Minnesota was raised in January 2021, and this trend is slated to continue. North Star State also does some things differently with its hourly wage, including considerations of company size, region, age, and experience of the worker. It is a trendsetter for the minimum wage in the Midwest with flexible laws that benefit both businesses and workers.

US-Turkey Capital sets several minimum wages

According to the Minnesota Turkey Growers Association, the state is top notch when it comes to harvesting thanksgiving birds. It turns out there are more turkey in a year than there are people in California. While this title is hard to beat, minimum wage lawmakers have profiled themselves with a unique approach that seeks to balance the interests of employers and employees.

For a company classified as a small employer, the minimum wage is currently $ 8.21 an hour. To fit into this category, a company must have gross annual sales of $ 500,000 or less. Any employer larger than this must pay a minimum wage of $ 10.08. Department of Labor and Industry estimates will affect an estimated 206,000 jobs – or 8.5 percent of total employment.

Minneapolis and St. Paul set off on their own

Two of Minnesota's most populous cities have decided to establish their own minimum wage rules. In 2017, the Minneapolis City Council voted to increase the minimum wage each year until it hits $ 15 an hour in 2022. Like its state counterpart, the city also has a separate tariff for small businesses with fewer than 100 employees. When this happens, employers can expect incremental increases until the mandatory $ 14.50 per hour is reached by 2024. Future upward trends are linked to inflation.

The Minneapolis minimum wage decision proved controversial. The city follows a handful of other US cities like Seattle and San Francisco, which have also raised their minimum wages. Not surprisingly, Minneapolis-based Graco Ltd. The company launched a lawsuit to prevent the raise, but lost that battle when the Minnesota Supreme Court unanimously voted to maintain the minimum wage bill in 2020.

St. Paul has different rules, but is similar in spirit to the state capital. The city goes a step further by dividing employers into three categories – micro, small, or large business. Despite the difference, all roads still lead to a minimum wage of $ 15.

Minnesota Minimum Wage for Youth, Apprentices, and Employees Tipped

Like many other states, Minnesota has a different hourly wage for teens under the age of 18 – it is $ 8.21 an hour. In addition, there is a 90-day training wage for employees under the age of 20, which is $ 8.21 per hour. These should also rise in line with the standard minimum wage, as long as the economic framework conditions remain favorable. As for tipped employees, Minnesota is dropping out of other states and not allowing employers to pay lower wages to those who are tipped. A worker must receive a minimum wage along with any tips they could earn.

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Photo by Kate Townsend on Unsplash

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