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 on the Employee wage notice webpage.

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 on the Workplace notices and posters webpage. More information about Minnesota's minimum-wage rates is available on the Minimum wage in Minnesota webpage.

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 on the Minnesota minimum wage report 2023 webpage.

Media contact:  James Honerman at james.honerman@state.mn.us or 651-284-5313.