New year, new minimum-wage rates as of Jan. 1, 2023

Minnesota’s minimum-wage rates will be adjusted for inflation on Jan. 1, 2023, to $10.59 an hour for large employers and $8.63 an hour for other state minimum wages.

As of Jan. 1, 2023:

• Large employers – with annual gross revenues of at least $500,000 – must pay at least $10.59 an hour.
• Small employers – with annual gross revenues less than $500,000 – must pay at least $8.63 an hour.
• The training wage rate, $8.63 an hour, may be paid to employees younger than 20 years of age for the first 90 consecutive days of employment.
• The youth wage rate, $8.63 an hour, may be paid to employees younger than 18 years of age.

The state minimum-wage rates will not apply to work performed in the cities of Minneapolis and St. Paul, which have higher minimum-wage rates.

Employee notice updates may be required

As part of Minnesota’s employee notice requirement, employers are required to provide each employee with a written notice of any change, before the change takes effect, including a change to the employee’s rate of pay. Learn more about the employee notice requirement at dli.mn.gov/business/employment-practices/employee-notice.

Required poster updated, available

Minnesota law requires employers to display some state-mandated posters in a location where employees can easily see them. The posters are available at no cost and need to be updated only when Minnesota law changes. An updated minimum-wage rate poster, as well as other workplace posters, can be found at dli.mn.gov/about-department/workplace-posters. More information about Minnesota’s minimum-wage rates is available at dli.mn.gov/business/employment-practices/minimum-wage-minnesota.

2022 Minnesota minimum wage report released

The Minnesota Department of Labor and Industry has released its 2022 Minnesota minimum-wage report.

Key findings

• Actual minimum wages for Minnesota, Minneapolis and St. Paul: The Minnesota minimum wage –  $10.33 an hour for large employers in 2022 – is adjusted annually for inflation. The minimum wages for large employers in Minneapolis and macro employers in St. Paul reached $15 in 2022. Minimum wages for other employers of different sizes in Minneapolis and St. Paul will reach $15 in various years from 2023 to 2027, and will be adjusted for inflation thereafter.
• Actual annual earnings at the minimum wage: For workers earning the Minnesota minimum hourly wage and working 40 hours a week, annual wages in 2022 are $21,486 for workers at large employers and $17,514 for workers at small employers. As of July 1, 2022, workers in Minneapolis earn annual full-time wages of $31,200 at large employers and $28,080 at small employers, while St. Paul workers earn $28,080 at large employers and $24,960 at small employers.
• Inflation-adjusted minimum wages: The 2022 Minnesota large-employer minimum wage of $10.33 an hour is below the average rate of the federal minimum wage for 1960 through 1981, which adjusting for inflation was $11.71. When the Minneapolis and St. Paul minimum wages reach $15, they will be higher than the federal minimum wage peak of $13.65, adjusted for inflation, which was reached in 1968.

View the full report at dli.mn.gov/business/employment-practices/minnesota-minimum-wage-report-2022.