Here’s What You Should Know About the Minimum Wage in Minnesota

Here’s What You Should Know About the Minimum Wage in Minnesota
Small business employers and their employees should be aware of the minimum wage requirements in Minnesota.
by Colleen Egan Oct 08, 2021 — 2 min read
Here’s What You Should Know About the Minimum Wage in Minnesota

This article doesn’t constitute legal advice. Please consult a lawyer or accountant in your state to learn more about minimum wage legislation as it applies to your business.

You have a lot to keep track of every day. Sales, schedules, cash flow, inventory — your list is probably a mile long. Add to that list all the laws and regulations that govern your business, which often change. One of the most talked-about nationwide is the minimum wage.

To help small-business owners in the North Star state stay up to date on Minnesota minimum wage rules, we’ve put together this quick guide for minimum wage requirements in 2023.

Learn how to formalize and grow your business. Check out the Employer Launchpad.

What is the minimum wage in Minnesota in 2023?

For businesses categorized as small employers, the Minnesota minimum wage is rising to $8.63 per hour in 2023. Small employers are any enterprises with annual gross revenues of $500,000 or less. The Minnesota minimum wage for large employers (gross annual revenues of more than $500,000) is rising to $10.59.

For businesses with younger employees, there are some additional Minnesota labor laws that apply:

It’s important to note that tipped employees are not exempt from the minimum wage in Minnesota, which is unlike the practice in many other states. Instead, state law dictates that employees must be paid at least the minimum wage per hour, plus any tips they might earn.

When does the minimum wage go up in Minnesota in 2023?

State law requires Minnesota’s minimum wage increase to be based on economic conditions with potential increases made on January 1 of each year. Since the Minnesota state minimum wage is adjusted each year for inflation, it is possible that Minnesota raises the minimum wage in 2023 and beyond.

In Minneapolis, the largest city in the state, the city council voted in 2017 to raise the minimum wage to $15. In 202, the state supreme court unanimously upheld the $15 minimum wage phased increase through 2024 for Minneapolis.

Here’s the minimum wage increase schedule for Minneapolis:

Date Small Business (100 employees or fewer) Large Business (100+ employees)
July 1, 2020 $11.75 $13.25
July 1, 2021 $12.50 $14.25
July 1, 2022 $13.50 $15.001
July 1, 2023 $14.50 Index to inflation
July 1, 2024 Equal to large businesses1 Index to inflation

1Increases will account for inflation every January 1.

How should small business owners prepare for potential changes to them Minnesota minimum wages in 2023?

It is unclear by how much Minnesota’s minimum wage will increase each year, but here are some other steps you can take to make sure your business is ready for anything:

Whether you want to keep up to date with Minnesota minimum wage laws, get an EIN, or learn more about COVID-19 small business resources, Square is here to help you grow your business.

Are you using Square for payroll? Learn how to manage your employee payroll dashboard.

Colleen Egan
Colleen Egan writes for Square, where she covers everything from how aspiring entrepreneurs can turn their passion into a career to the best marketing strategies for small businesses who are ready to take their enterprise to the next level.


Tell us a little more about yourself to gain access to the resource.

i Enter your first name.
i Enter your last name.
i Enter a valid email.
i Enter a valid phone number.
i Enter your company name.
i Select estimated annual revenue.

Thank you!
Check your email for your resource.

Results for

Based on your region, we recommend viewing our website in:

Continue to ->