New year, new minimum-wage rate 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.

An estimated 250,000 hourly workers in Minnesota will earn less than $9.65 an hour.

"In 2014, I worked with the DFL Legislature to raise Minnesota's minimum wage three times and to increase it thereafter with inflation. Now, that law will further boost incomes for more than 250,000 Minnesotans and their families who are working hard to lift themselves out of poverty," said Governor Mark Dayton.

"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.

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.

Workplace poster

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.

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