Minnesota minimum wage set to increase January 1, 2018

The minimum wage for Minnesota will increase for inflation January 1, 2018.  The new minimum wage rate for large employers will increase to $9.65 per hour (from $9.50 currently) and small employers will increase to $7.87 per hour (from $7.75 currently).

 PROVISIONS Thru 12/31/2017 Effective 1/1/2018
Larger Employer $9.50 $9.65
Small Employer $7.75 $7.87
90 Day Training (under 20 years of age) $7.75 $7.87
Youth Wage (under 18 years of age) $7.75 $7.87


The definition of a large employer is an enterprise with annual gross revenue of $500,000 or more.  In addition, a government is considered a large employer if the municipalities total budget is greater than $500,000.  The municipality needs to consider all city operations in the calculation of the total budget including enterprise funds such as water/sewer operations and municipal liquor stores.

If an entity does not meet the requirement of a large employer then they would fall under the provisions of a small employer.

In addition, municipalities may have certain employees who are not covered by the minimum wage law.  The following is a list of non-covered employees:

  1. Elected officials
  2. Commission/board/committee members
  3. Police or fire protection services