Minnesota Minimum Wage to Go Up In 2021

Dec 31, 2020Business

Minnesota Minimum Wage Rate Adjusted for Inflation as of January 1, 2021

Minnesota’s minimum-wage rates will be adjusted for inflation beginning January 1, 2021.

ProvisionRate until Dec. 31, 2020Rate as of Jan. 1, 2021
Large employer wage$10.00/hour$10.08/hour
Small employer wage$8.15/hour$8.21/hour
90-day training wage 
(under 20 years of age)
Youth wage
(under 18 years of age)
  • The Minnesota minimum wage is higher than the federal minimum wage.  Employees who are covered by both laws must be paid the higher state minimum wage.
  • Minimum wage rates apply to all hours worked, whether part time of full time.
  • Employees must be paid at least the current minimum wage, no matter how they are paid.
  • An employee must be paid at least the minimum wage per hour plus any tips the employee might earn.
  • For additional information on minimum wage rates, employer size determinations and exempt employee considerations visit the Minnesota Department of Labor and Industry website.

Minneapolis Adds a Minimum Wage Ordinance

Minneapolis sets a new hourly minimum wage standard for work performed in Minneapolis.  Below is a chart of rate changes for the coming years.  For additional information on the ordinance and how to determine business size visit the Minneapolis Minimum Wage website.

100 or Fewer Employees Small BusinessMore than 100 Employees Large Business
January 1, 2018Same as MN$10.00/hour
July 1, 2018$10.25/hour$11.25/hour
July 1, 2019$11.00/hour$12.25/hour
July 1, 2020$11.75/hour$13.25/hour
July 1, 2021$12.50/hour$14.25/hour
July 1, 2022$13.50/hour$15.00/hour

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