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:
- Elected officials
- Commission/board/committee members
- Police or fire protection services