Legal Alerts

Did You Get a Raise Today? Minnesota Minimum Wage Increases as of August 1

08.01.14

Minnesota minimum wage increased August 1, 2014. If you are a large employer, with annual gross volume of sales made or business done not less than $625,000, you must now pay your employees a minimum of $8.00 per hour, a $.75 increase. That rate will increase to $9.00 next year and $9.50 in 2016, making it one of the highest in the country. Small employers must pay their employees a minimum of $6.50 per hour, rising to $7.25, and then to $7.75. In January 2018, the state's minimum wage will be indexed to inflation. There is now a new youth minimum wage, for those under age 18, of $6.50 per hour and a 90-day training wage for those under age 20 of $6.50 per hour.   

Unlike many states, there is no "tip credit" which permits employers of tipped employees to pay a lower guaranteed minimum wage if tips received from customers supplement the wage. Employers must pay minimum wage per hour in addition to any tips the employee might earn.

Employers are reminded that there are both state and federal minimum-wage laws. If the employer is subject to both, the employee is entitled to the higher of the two minimum wages for all hours worked. Currently the federal minimum wage is $7.25 per hour, meaning that large employers in Minnesota must pay more than the current federal minimum.

here are certain jobs which are exempt from minimum wage, including exempt professionals, certain agriculture workers, babysitters, and certain classifications covered by the Department of Transportation, including truck drivers. To determine whether this new law affects you or your employees, view the State of Minnesota summary guide.  

If you have any questions regarding the minimum wage increase, the employment lawyers at Lindquist & Vennum are ready to assist you.

Contact
LaFromboise, Antoine J.
Communications and Brand Manager
T 612.371.3269

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