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Lost within the significant actions taken in July by the federal Department of Labor to issue proposed overtime regulations and guidance regarding the use of independent contractors is the biggest move in Minnesota’s minimum wage in recent memory.  The following chart details the nuances and update to the state’s minimum wage.

Large employer wage

$9.00/hour on Aug. 1, 2015

$9.50/hour on Aug. 1, 2016

Small employer wage

$7.25/hour on Aug. 1, 2015

$7.75/hour on Aug. 1, 2016

90-day training wage

(under 20 years of age)

$7.25/hour on Aug. 1, 2015

$7.75/hour on Aug. 1, 2016

Youth wage

(under 18 years of age)

$7.25/hour on Aug. 1, 2015

$7.75/hour on Aug. 1, 2016

Inflation increase

Inflation indexing begins on Jan. 1, 2018

Employers in the state will need to post updated posters notifying employees of these changes.  Posters are free and can be ordered from the Department of Labor and Industry.  The updated poster is also available at http://www.dli.mn.gov/LS/Pdf/posters/minwage_poster.pdf.

Thompson Coe and myHRgenius Tip of the Week is not intended as a solicitation, does not constitute legal advice, and does not establish an attorney-client relationship.

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