Minnesota’s minimum wage set to increase next week

History was made back in 2014 when Governor Mark Dayton signed a landmark law calling for the state’s minimum wage to undergo a series of significant increases over the coming years. The move, undertaken to improve the quality of life of hundreds of thousands of Minnesotans and their families, initially saw the minimum wage rise to $8 per hour for large employers and $6.50 per hour for small employers.

Fast forward to July 2016, and the minimum wage currently sits at $9.00 per hour for large employers and $7.25 per hour for small employers. As hard as this might be to believe, consider that yet another minimum wage increase is slated to take effect this coming Monday.

How much is Minnesota’s minimum wage going to increase on August 1, 2016?

Starting Monday, large employers will be required to pay a minimum wage of $9.50 per hour and small employers will be required to pay a minimum wage of $7.75 per hour.

This new $7.75 per hour minimum wage also applies to youth wages and 90-day training wages.

What’s the difference between a large employer and a small employer?

Minnesota law classifies as large employer as one that generates $500,000 or more in gross annual revenue, and a small employer as one that generates less than $500,000 in gross annual revenue.

Do the new minimum wages apply to only full-time employees?

No, the new minimum wages apply to both full-time and part-time employees.

Are employers still forbidden from taking a tip credit against minimum wages?

Yes, the prohibition against taking a tip credit against minimum wages is still in effect.

When is the next scheduled minimum wage increase?

According to the Minnesota Department of Labor and Industry, these minimum wages will start rising to meet inflation in 2018.

If you believe that an employer has failed to pay you the wages to which you are entitled under state law, consider speaking with a skilled legal professional to learn more about your options.