Minnesota's minimum wage increases Aug. 1, third of three increases

Minnesota's large employer minimum-wage rates rise to $9.50 an hour beginning Aug. 1, 2016. This is the state's third of three annual minimum-wage increases put into law in 2014. In January 2018, the rates will be annually indexed to inflation.

"In 2014, I worked with the Legislature to raise the minimum wage in Minnesota. This year, that law takes full effect, improving the lives of more than 287,000 Minnesotans and their families," said Gov. Mark Dayton. "All Minnesotans who work full time should earn enough to lift their families out of poverty and lead full lives."

"Today, nearly 300,000 hardworking Minnesotans will see their incomes increase, putting more money in the pockets of families paying for child care, groceries and a roof over their heads," said Lt. Gov. Tina Smith. "But we have more work to do to build an economy that works for all Minnesotans, everywhere in our state, not just those already at the top. More than half of minimum-wage workers are women; raising the minimum wage improves the lives of thousands of Minnesota 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 (DLI).

To help employers understand the new requirements, DLI has updated its minimum-wage fact sheets; both are available at http://www.dli.mn.gov/MinWage.

As of Aug. 1, 2016

• Large employers must pay at least $9.50 an hour when the employer's annual gross revenues are $500,000 or more.

• Small employers must pay at least $7.75 an hour when the employer's annual gross revenues are less than $500,000.

• The training wage rate, $7.75 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 $7.75 an hour, may be paid to employees younger than 18 years of age.

Other minimum-wage laws

• Minimum-wage rates apply to all hours worked, whether part time or full time.

• Employees must be paid at least the minimum-wage rate, no matter how they are paid.

• No employer may take a tip credit against wages in Minnesota.

• Examples of workers exempt from minimum-wage requirements include: bona fide executive, administrative or professional workers; babysitters; and volunteers of nonprofit organizations.