Statewide minimum wage in Minnesota set to go up Jan. 1

August 24, 2018

Minnesotas minimum-wage workers will get a raise starting Jan. 1, state officials announced Thursday.

An adjustment for inflation will raise the statewide minimum wage from $9.65 to $9.86 an hour for workers at companies with annual gross revenue of $500,000 or more. Employees at smaller companies will see the minimum wage go from $7.87 to $8.04 an hour.

The youth wage rate paid to workers younger than 18 also will go up to $8.04 an hour, as will the training wage that may be paid to employees under age 20 for the first 90 consecutive days of employment.

About 219,000 people or 8.4 percent of the states workforce are paid minimum wage. That doesnt include about 71,000 workers in Minneapolis, where the minimum is $10.25 for companies with fewer than 100 workers, and $11.25 for companies with more than 100 workers.

The minimum wage in Minneapolis will increase to $15 an hour by 2022 for large companies and by 2024 for small companies. St. Paul officials have pledged to pass a $15 minimum soon.

This is great news for Minnesotas lowest-wage workers and will help them keep up with inflation to better provide for themselves and their families, said Ken Peterson, commissioner of the Minnesota Department of Labor and Industry. But more needs to be done so all Minnesotans can earn their way to economic security.

The wage increase was applauded by 15 Now Minnesota, a group that advocates for higher wages.

We celebrate the wage increase that hardworking families are getting as a result of movement building and struggle by Minnesota workers, said Celeste Robinson, the groups co-director.

But the reality is that the number is still poverty wages, and there are still thousands of working families that are struggling to get by. We look forward to continuing the tradition of Minnesota workers struggling for our rights and dignity for a $15 minimum wage in Minnesota and beyond.

The Minnesota Chamber of Commerce, which has fought minimum wage increases, did not return a call seeking comment Thursday.

John Reinan 612-673-7402

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