How the minimum wage in Minnesota and Minneapolis will change on Jan. 1, 2018

It's going up both statewide and in Minneapolis, but to different hourly rates.
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The Essentials

1. Anyone in Minnesota that earns minimum wage will be getting a raise on Jan. 1, 2018 – but workers in Minneapolis will get a slightly bigger boost.

2. The statewide minimum wage will jump to $9.65 an hour for large employers (those that earn more than $500,000 a year), and $7.87 an hour for smaller companies and new or younger workers. 

3. In Minneapolis, the minimum wage will jump to $10 an hour for large employers with more than 100 workers. It will not increase in 2018 for small businesses.

What Else You Should Know

Both rates will continue to change in the years ahead.

For the state, the Jan. 1, 2018, increase (up from $9.50 an hour for large businesses) is an automatic adjustment based on inflation. That's built in to the law – so each year, if there's a shift, the statewide minimum will follow.

Related:

Who earns the minimum wage in Minnesota?

The Minneapolis hike is preplanned. It's a built-in rise that's part of the city's yearslong path to reach a $15-an-hour minimum wage.

The federal minimum wage is $7.25 an hour. Minnesota workers have to be paid the state or city rate.

An estimated 250,000 hourly workers in Minnesota make less than $9.65 an hour, the Department of Labor and Industry notes.

The department found nearly half of minimum-wage earners in the state are over the age of 25, and that 88 percent of minimum-wage workers over the age of 20 have a diploma.

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