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UPDATE: MN Minimum Wage Rate Adjusted for Inflation – Jan. 1, 2018

UPDATE: MN Minimum Wage Rate Adjusted for Inflation – 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.

State and Federal Minimum Wage Law

  • The state minimum wage is higher than the federal minimum wage, so 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 or full time.
  • Employees must be paid at least the current minimum-wage rate, no matter how they are paid.

Tip credit

  • No employer may take a tip credit against minimum wages in Minnesota.
  • An employee must be paid at least that minimum wage per hour plus any tips the employee might earn.

Exempt employees

  • A partial list of exempt employees includes:  bona fide executive, administrative or professional workers; babysitters; volunteers of nonprofit organizations; and employees subject to the provisions of the U.S. Department of Transportation (drivers, drivers’ helpers, mechanics and loaders).
  • Under Minnesota Statutes 177.28, the Department of Labor and Industry is authorized to issue a permit to a disabled worker (performance-limited employee) unable to earn the state minimum-wage, to work at a wage commensurate with his or her ability. View the Disabled-worker employment information guide.
  • For a complete list of exempt employees see Minnesota Statutes 177.23, subd. 7.


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