Starting January 1, 2025, Minnesota’s minimum wage will increase to $11.13 per hour for all workers. This new rate applies to all employers, regardless of size, and includes specific provisions for different categories of workers:
– **General Minimum Wage**: $11.13 per hour for all employees.
– **Training Wage**: $9.08 per hour for workers under 20 years old during their first 90 days of employment.
– **Youth Wage**: $11.13 per hour for workers under 18 years old.
– **J-1 Visa Wage for Hotels, Motels, and Lodging Establishments**: $11.13 per hour.
### Key Points:
- **Inflation Adjustment**: The increase in the minimum wage is an adjustment for inflation.
- **Federal vs. State Wage**: Minnesota’s state minimum wage is higher than the federal minimum wage, meaning employees in Minnesota must be paid the higher state wage.
- **No Tip Credit**: Employers in Minnesota cannot count tips toward meeting the minimum wage requirement. Employees must receive the full minimum wage rate in addition to any tips they earn.
- **Determining Employer Size**: Employers are classified as large or small based on their gross revenue from the past four quarters. If an employer’s gross revenue exceeds $500,000, they must pay the large employer minimum wage rate.
### Local Ordinances:
– Both Minneapolis and St. Paul have local minimum wage laws that may set higher rates than the state minimum. Employers in these cities must comply with the local ordinances if they set a higher wage.
These changes ensure that Minnesota workers are paid fairly according to state regulations, with adjustments made to keep up with the cost of living.