Minnesota minimum wage to increase 1/1/2019

The minimum wage for Minnesota will increase for inflation January 1, 2019.  The new minimum wage rate for large employers will increase to $9.86 per hour (from $9.65 currently) and small employers will increase to $8.04 per hour (from $7.87 currently).

 PROVISIONS Thru 12/31/2018 Effective 1/1/2019
Larger Employer $9.65 $9.86
Small Employer $7.87 $8.04
90 Day Training (under 20 years of age) $7.87 $8.04
Youth Wage (under 18 years of age) $7.87 $8.04

 

The definition of a large employer is an enterprise with annual gross revenue of $500,000 or more.  In addition, a government is considered a large employer if the municipalities total budget is greater than $500,000.  The municipality needs to consider all city operations in the calculation of the total budget including enterprise funds such as water/sewer operations and municipal liquor stores.

If an entity does not meet the requirement of a large employer then they would fall under the provisions of a small employer.

In addition, municipalities may have certain employees who are not covered by the minimum wage law.  The following is a list of non-covered employees:

  1. Elected officials
  2. Commission/board/committee members
  3. Police or fire protection services

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