Minimum-wage rates adjusted for inflation as of Jan. 1, 2018

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.

"In 2014, I worked with the Legislature to raise the minimum wage in Minnesota. Now, that law demonstrates its full benefit, as incomes rise for more than 250,000 Minnesotans and their families, who are working hard to lift themselves out of poverty," said Governor Mark Dayton.

"Our state and nation were founded on the belief that hard work and opportunity should go hand in hand. Raising the minimum wage will help make this value a reality for thousands of Minnesotans, many of them people of color and women with children," said Lieutenant Governor Tina Smith. "This increase is good news and we have more work to do so that all Minnesotans can earn their way to economic security for themselves and their families."

"This is good news for Minnesota's lowest-wage workers and will help them earn more to provide for their families," said Ken Peterson, commissioner, Minnesota Department of Labor and Industry.

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.