New year, new minimum-wage rates as of Jan. 1, 2025

Minnesota's minimum-wage rates will be adjusted for inflation Jan. 1, 2025, to $11.13 an hour for all employers, including large employers, small employers, youth and J-1 visa wages for hotels, motels and lodging establishments. The law still allows for a 90-day training wage for workers under age 20. The current hourly training wage, $8.85, will increase to $9.08.

As of Jan. 1, 2025:

• All employers must pay at least $11.13 an hour.

• The training wage rate, $9.08 an hour, may be paid to employees younger than 20 years of age for the first 90 consecutive days of employment.

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.

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. Learn more about Minnesota's minimum-wage rates.

2024 Minnesota minimum-wage report released

The Minnesota Department of Labor and Industry has released its 2024 Minnesota minimum-wage report.

Key findings

• Effective minimum wages for Minnesota, Minneapolis and St. Paul:  The Minnesota minimum wage –  $10.85 an hour for large employers in 2024 – is indexed annually for inflation and will increase to $11.13 for all employers Jan. 1, 2025. The minimum wages for large employers in Minneapolis and macro employers in St. Paul reached $15.57 Jan. 1, 2024, and indexed for inflation, will increase to $15.97 Jan. 1, 2025. Minimum wages for small employers in Minneapolis and large employers in St. Paul also reached the same rate July 1, 2024, and will also increase to $15.97 Jan. 1, 2025. Minimum wages for small and micro employers in St. Paul are $14 and $12.25 as of July 1, 2024. They will reach $15 in 2025 and 2027, respectively, and will be indexed 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 2024 are $22,568 for workers at large employers and $18,408 for workers at small employers. Effective Jan. 1, 2025, annual wages will be $23,150 for both large and small employers. As of Jan. 1, 2024, workers at Minneapolis large employers and St. Paul macro employers earn annual full-time wages of $32,386, which will increase to $33,218 Jan. 1, 2025. As of July 1, 2024, workers at Minneapolis small employers and St. Paul large employers also earn $32,386, which will increase to $33,218 Jan. 1, 2025. Workers at St. Paul small employers earn $29,120, which will increase to $31,200 July 1, 2025.

• Minimum wages in 2024 dollars:  Adjusting for inflation, the 2024 Minnesota large-employer minimum wage of $10.85 an hour is below the average rate of the federal minimum wage for 1960 through 1981, which was $12.37 an hour. The current inflation-adjusted Minneapolis and St. Paul minimum wages of $15.97 an hour is higher than the $14.42 an hour peak reached by the federal minimum wage in 1968.

View the full report.