Minnesota’s minimum-wage rates will be adjusted for inflation beginning Jan. 1, 2018, to $9.65 an hour for large employers and $7.87 an hour for other state minimum wages.
Under Minnesota law, the commissioner of the Department of Labor and Industry is required to determine and announce the inflation-adjusted minimum-wage rate each year by Aug. 31. This year, the change in the price deflator is an increase of 1.56 percent.
An estimated 250,000 hourly workers earn less than $9.65 an hour.
Applying this percentage increase to Minnesota’s current minimum-wage rates, the large-employer minimum wage, now $9.50, will increase by 15 cents to $9.65. Other state minimum wages, including the small-employer, youth and training wages, as well as the summer work travel exchange visitor program wage, which are all now $7.75, will increase by 12 cents to $7.87.
As of Jan. 1, 2018:
• Large employers must pay at least $9.65 an hour when the employer’s annual gross revenues are $500,000 or more.
• Small employers must pay at least $7.87 an hour when the employer’s annual gross revenues are less than $500,000.
• The training wage rate, $7.87 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, at least $7.87 an hour, may be paid to employees younger than 18 years of age.