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 Nov 06, 2023 — 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 2024.

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

What is the minimum wage in Minnesota in 2024?

For businesses categorized as small employers, the Minnesota minimum wage is rising to $8.85 per hour in 2024. 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 $10.85.

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.

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, Minnesota will raise the minimum wage in 2024 and beyond. It’s important to note that cities like St. Paul and Minneapolis have minimum wage ordinances that may require a higher wage than the state. 

What is the minimum wage in Minneapolis in 2024?

 

In Minneapolis, the largest city in the state, 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, 2022 $13.50 $15.001
Jan 1, 2023 $15.191
July 1, 2023 $14.50
Jan 1, 2024 $15.571
July 1, 2024 $15.57

1Increases will account for inflation every January 1.

How should small business owners prepare for changes in 2024?

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.

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