New year, new minimum-wage rates as of Jan. 1, 2024

Minnesota's minimum-wage rates will be adjusted for inflation Jan. 1, 2024, to $10.85 an hour for large employers and $8.85 an hour for other state minimum wages.

As of Jan. 1, 2024:

• Large employers -- with annual gross revenues of at least $500,000 -- must pay at least $10.85 an hour.

• Small employers -- with annual gross revenues less than $500,000 -- must pay at least $8.85 an hour.

• The training wage rate, $8.85 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, $8.85 an hour, may be paid to employees younger than 18 years of age.

The state minimum-wage rates will not apply to work performed in the cities of Minneapolis and St. Paul, which have higher minimum-wage rates.

Employee notice updates may be required

As part of Minnesota's employee notice requirement, employers are required to provide each employee with a written notice of any change, before the change takes effect, including a change to the employee's rate of pay. Learn more about the employee notice requirement at dli.mn.gov/business/employment-practices/employee-notice.

Required poster updated, available

Minnesota law requires employers to display some state-mandated posters in a location where employees can easily see them. The posters are available at no cost and need to be updated only when Minnesota law changes. An updated minimum-wage rate poster, as well as other workplace notices and posters, can be found at dli.mn.gov/posters. More information about Minnesota's minimum-wage rates is available at dli.mn.gov/business/employment-practices/minimum-wage-minnesota.

2023 Minnesota minimum-wage report released

The Minnesota Department of Labor and Industry has released its 2023 Minnesota minimum-wage report.

Key findings

• Effective minimum wages for Minnesota, Minneapolis and St. Paul: The Minnesota minimum wage -- $10.59 an hour for large employers in 2023 -- is adjusted annually for inflation. The minimum wages for large employers in Minneapolis and macro employers in St. Paul reached $15 an hour in 2022, and the minimum wage for large employers in St. Paul reached $15 an hour in 2023. Minimum wages for other employers of different sizes in Minneapolis and St. Paul will reach $15 in various years from 2024 to 2027, and will be adjusted for inflation thereafter.

• Full-time annual earnings at the effective minimum wages: For workers earning the Minnesota minimum hourly wage and working 40 hours a week, annual wages in 2023 are $22,027 for workers at large employers and $17,950 for workers at small employers. As of Jan. 1, 2023, minimum-wage workers in Minneapolis earn annual full-time wages of $31,595 at large employers. Also, minimum-wage workers in St. Paul earn annual full-time wages of $31,595 at macro employers. As of July 1, 2023, minimum-wage workers in Minneapolis earn $30,160 at small employers, while St. Paul minimum-wage workers earn $31,200 at large employers and $27,040 at small employers.

• Minimum wages in 2023 dollars: Adjusting for inflation, the 2023 Minnesota large-employer minimum wage of $10.59 an hour is below the average rate of the federal minimum wage for 1960 through 1981, which was $12.03 an hour. When the Minneapolis and St. Paul minimum wages reach $15 an hour, they will be higher, adjusting for inflation, than the $14.03 an hour peak reached by the federal minimum wage in 1968.

View the full report at dli.mn.gov/employment-practices/minnesota-minimum-wage-report-2023.