Minnesota’s minimum wage rates will be adjusted for inflation as of January 1
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Thursday, October 8, 2020

Minnesota’s minimum wage rates will be adjusted for inflation as of January 1

By Payroll and Entitlements Editorial Staff

Minnesota's minimum-wage rates will be adjusted for inflation January 1, 2021, to $10.08 an hour for large employers with annual gross revenues of at least $500,000 and to $8.21 an hour for smaller employers. The state minimum wage rates apply to all hours worked, whether part time or full time.

The current large-employer minimum wage, $10.00, will increase by eight cents to $10.08. Other state minimum wages, including the small-employer, youth and training wages, as well as the summer work travel exchange visitor program wage, which are all currently $8.15, will increase by six cents to $8.21. These increases are both 0.8%.

Under Minnesota law, the commissioner of the Department of Labor and Industry is required to determine and announce the inflation-adjusted minimum-wage rate each year by August 31. This past year, the change in the price index used for this purpose was an increase of .08%.

The state minimum wage is higher than the federal minimum wage rate, so employees who are covered by both laws must be paid the higher state minimum wage rate. (Minnesota Department of Labor and Industry, News Release, August 28, 2020).

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