Minimum wage increases Jan. 1, 2018

minnesota department of labor and industry

Wage and Hour Bulletin

December 2017

New state minimum wages take effect Jan. 1, 2018

Minimum wage increases Jan. 1, 2018

Minimum-wage rate increasing for all employer sizes


Minnesota's minimum-wage rates will be adjusted for inflation beginning Jan. 1, 2018, to $9.65 an hour for large employers and $7.87 an hour for other state minimum wages.


Minimum-wage rates as of Jan. 1, 2018

The following are Minnesota's minimum-wage rates as of Jan. 1, 2018.

  • Large employers must pay at least $9.65 an hour when the employer's annual gross revenues are $500,000 or more.
  • Small employers must pay at least $7.87 an hour when the employer's annual gross revenues are less than $500,000.
  • The training wage rate, $7.87 an hour, may be paid to employees younger than 20 years of age for the first 90 consecutive days of employment.
  • The youth wage rate, at least $7.87 an hour, may be paid to employees younger than 18 years of age.

    Why the state minimum wage is increasing

    Under Minnesota law, the commissioner of the Department of Labor and Industry is required to determine and announce the inflation-adjusted minimum-wage rate each year by Aug. 31. This year, the change in the price deflator is an increase of 1.56 percent.


    Minneapolis wage increase also takes effect Jan. 1, 2018

    The Minneapolis minimum wage also increases Jan. 1, 2018. Learn more about the increase implementation or enforcement at www.ci.minneapolis.mn.us/minimumwage or call the Minneapolis Department of Civil Rights at (612) 673-3012.


    Questions?

    Labor Standards serves the citizens of Minnesota by providing 
    information about the state's wage, hour and employment laws.

     Phone:  (651) 284-5070 or 1-800-342-5354
    Email:  dli.laborstandards@state.mn.us 
    Website:  www.dli.mn.gov/LaborLaw.asp