Minnesota minimum wage to increase 1/1/2020

The minimum wage for Minnesota will increase for inflation January 1, 2020.  The new minimum wage rate for large employers will increase to $10.00 per hour (from $9.86 currently) and small employers will increase to $8.15 per hour (from $8.04 currently).

 PROVISIONS Thru 12/31/2019 Effective 1/1/2020
Larger Employer $9.86 $10.00
Small Employer $8.04 $8.15
90 Day Training (under 20 years of age) $8.04 $8.15
Youth Wage (under 18 years of age) $8.04 $8.15


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