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Minnesota's minimum wage to get small bump starting Jan. 1

Minimum wage in Minnesota is set to go up by several cents per hour

Minimum wage workers across Minnesota are set to see a slight increase in their paycheck as the state implements its next phase of raising minimum wage. 

The change stems from 2014 legislation mandating that wages be adjusted annually to account for inflation, and doesn't pertain to Minneapolis or St. Paul employers because each city already requires a higher minimum wage. Beginning Jan. 1:

  • Large employers (with an annual gross revenue of at least $500,000) must pay employees at least $10.08 — an eight cent increase from the current minimum of $10. That adds up to about $166 per year. 
  • Small employers (with annual gross revenue less than $500,000) must pay workers at least $8.21, up from $8.15
  • The training wage rate for employees younger than 20 years old, as well as the general youth wage rate for anyone younger than 18, must be at least $8.21 

The change would affect about 200,000 jobs statewide, according to the Department of Labor and Industry.   

Minneapolis and St. Paul both have their own minimum wage policies dictating small increases over the next few years. Beginning July 1, Minneapolis employers with 100 or fewer workers must increase their minimum wage from $11.75 to $12.50, and larger employers must increase their current hourly rate of $12.25 by one dollar. 

In St. Paul, employers with five or fewer employees must pay $9.25 hourly, with a raise to $10 coming July 1. Employers with six to 99 workers will increase wages from $10 to $11, and companies with between 100 and 9,999 workers will increase from $11.50 to $12.50. 

Minnesota House Majority Leader Ryan Winkler, D-Golden Valley, authored the original 2014 legislation and issued a statement Wednesday that "very little has changed around the politics of the issue." 

“We know that our annual pay raises alone aren't enough to help Minnesotans earn a living wage, and that’s why House Democrats are determined to provide affordable health care, child care, paid leave, and a secure retirement for all who work," he said in the statement. 

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