Minnesota Minimum Wage Rate Adjusted for Inflation as of January 1, 2021
Minnesota’s minimum-wage rates will be adjusted for inflation beginning January 1, 2021.
| Provision | Rate until Dec. 31, 2020 | Rate as of Jan. 1, 2021 |
| Large employer wage | $10.00/hour | $10.08/hour |
| Small employer wage | $8.15/hour | $8.21/hour |
| 90-day training wage (under 20 years of age) | $8.15/hour | $8.21/hour |
| Youth wage (under 18 years of age) | $8.15/hour | $8.21/hour |
- The Minnesota minimum wage is higher than the federal minimum wage. Employees who are covered by both laws must be paid the higher state minimum wage.
- Minimum wage rates apply to all hours worked, whether part time of full time.
- Employees must be paid at least the current minimum wage, no matter how they are paid.
- An employee must be paid at least the minimum wage per hour plus any tips the employee might earn.
- For additional information on minimum wage rates, employer size determinations and exempt employee considerations visit the Minnesota Department of Labor and Industry website.
Minneapolis Adds a Minimum Wage Ordinance
Minneapolis sets a new hourly minimum wage standard for work performed in Minneapolis. Below is a chart of rate changes for the coming years. For additional information on the ordinance and how to determine business size visit the Minneapolis Minimum Wage website.
| 100 or Fewer EmployeesSmall Business | More than 100 EmployeesLarge Business | |
| January 1, 2018 | Same as MN | $10.00/hour |
| July 1, 2018 | $10.25/hour | $11.25/hour |
| July 1, 2019 | $11.00/hour | $12.25/hour |
| July 1, 2020 | $11.75/hour | $13.25/hour |
| July 1, 2021 | $12.50/hour | $14.25/hour |
| July 1, 2022 | $13.50/hour | $15.00/hour |
